Texas Solar Perks That Still Exist: Property Tax Exemption, HOA Protections & More

The headline everyone saw: the 30% federal solar tax credit for homeowners ended on December 31, 2025. What got less attention is that Texas has its own protections for homeowners who go solar, and they're still on the books. If you're in Houston or Dallas-Fort Worth, here's what still works in your favor.

1. Solar won't raise your property taxes

Under Texas Tax Code Section 11.27, the value that solar adds to your home is exempt from property taxes. Your home can be worth more with solar, but your appraisal shouldn't go up because of it.

You do have to apply. File the exemption form (Form 50-123) with your county appraisal district, such as Harris CAD or Dallas CAD. The deadline is generally April 30 of the tax year. Missing it means paying taxes on value you didn't have to.

2. Your HOA generally can't ban solar

Texas Property Code Section 202.010 limits HOAs' power to prohibit solar panels. HOAs can set some reasonable rules, like requiring approval or certain placements, but in most cases they can't simply say no. If your HOA pushes back, a solar installer who knows the law can help you work through approval.

3. No state income tax to work around

Texas has no state income tax, so there's no state solar tax credit, but there's also no state tax eating into your savings. Every dollar solar saves on your electric bill stays yours.

4. Leases and PPAs can still capture federal savings

Homeowners who buy no longer get the federal credit. Companies that own solar systems, through leases and power purchase agreements, can still claim a commercial federal credit within federal deadlines and pass part of the savings on through lower payments. It's worth comparing both options in 2026.

5. Rising rates make solar worth more

Texas electricity prices have trended up, and summers keep setting demand records. Every kWh you produce and use yourself is one you don't buy at today's rates, or tomorrow's.

Bonus: backup power

With Texas's outage history, a battery adds a benefit no tax credit can: keeping your lights, fridge and Wi-Fi on when the grid goes down.

Protect the investment

Solar is a 25-year asset. Empower's Solar Monitoring Plans keep it performing. Basic Monitoring ($14.99/mo) includes 24/7 monitoring, remote troubleshooting and an annual check-in. Platinum Monitoring ($49.99/mo) adds a free annual visit and tune-up, an electrical panel inspection and 15% off PV and battery service.

FAQ

Are there solar incentives in Texas in 2026? Yes. The property tax exemption and HOA protections still apply, and leases or PPAs can still pass along federal savings.

Will solar raise my property taxes in Texas? No. The added value is exempt, as long as you file the exemption with your appraisal district.

Can my HOA stop me from installing solar? In most cases, no. HOAs can set some placement and approval rules but generally can't ban solar.

See what solar is worth for your home

Get a free solar and battery estimate built for Houston or Dallas-Fort Worth. Call (346) 660-3937 or visit empoweryourhome.com.