What Changed in Texas Solar Incentives for 2026 — and Why Houston Homeowners Shouldn’t Wait

Solar shopping in Houston got more complicated in 2026. Here’s a plain rundown of what changed, what’s still available, and the one reason to go solar that has nothing to do with incentives.

What changed

The 30% federal residential solar tax credit ended for spending after December 31, 2025. If you buy a system in 2026, you pay full price. That’s roughly 43% more out of pocket than the same system cost with the credit (100% of the price instead of 70%).

What’s still available

• Leases and power purchase agreements. Under current federal rules, installers can claim a business credit on third-party-owned systems through 2027, and part of that value can be passed on in your payment. It’s the one incentive with a visible end date, so it’s worth comparing.
• Property tax treatment. Texas has generally exempted the added home value from solar from property taxes. Confirm how it applies to your county.
• Financing. Options to spread the cost into monthly payments.
• Buyback plans. Texas has no statewide net metering mandate. Your retail electric provider decides what it pays for exported power, and plans range from a few cents per kWh to matching your retail rate. Choosing your provider matters almost as much as choosing your panels.

How Houston’s electricity market works

In much of Texas, including the Houston area, you pick a retail electric provider that sells you power, while a separate company that owns the poles and wires delivers it. In Houston, that delivery company is CenterPoint. That split matters for solar in two ways.

First, your provider, not the delivery company, decides what you’re paid for exported solar. Second, the delivery company is the one you call when the power goes out.

How to compare buyback plans

Not all plans are built alike. When you compare, look at:

1. The export credit: is it a flat rate, a rate that follows your usage, or something tied to the wholesale market?
2. Any conditions: some plans require you to buy a minimum amount, or cap what they’ll credit.
3. Contract length and fees, including what happens if you leave early.
4. Whether the plan is designed for solar homes, or is a standard plan that happens to allow exports.

Because these plans change often, ask for the current terms in writing before you choose.

The Houston-specific reason to consider storage

Incentives come and go. Outages are local. Hurricane Beryl in July 2024 left more than 2 million CenterPoint customers without power, and CenterPoint has been investing in resiliency since, with stronger poles, vegetation trimming and automation. That’s good progress, and no grid is outage-proof.

A solar system without a battery shuts down when the grid does. A solar-plus-battery system does double duty: savings on regular days, and backup power when the grid is down.

Built for Gulf Coast weather

Houston-area solar has to handle heat, humidity, heavy rain and high winds. Ask any installer how the racking and roof attachments are designed for wind, how the roof penetrations are sealed, and how the system is rated for the conditions where you live. A roof that’s near the end of its life should be dealt with before panels go on, since removing and reinstalling panels later adds cost.

Should you wait?

We won’t manufacture urgency. The federal homeowner credit is already gone, so waiting won’t bring it back. The two real clocks are the lease and PPA credit timeline, which is currently scheduled to end after 2027 (worth confirming), and every hurricane season you go without backup power. Ask for a savings estimate that reflects your usage, your provider’s buyback plan and the price with no credit.

Buy, finance or lease?

• Buying has the lowest total cost over time if you have the funds and plan to stay.
• Financing spreads the cost, so compare the payment with the bill you’d be avoiding.
• Leasing or a PPA lowers the upfront cost and can pass through some of the business credit, but you typically don’t own the system, so read the terms, including what happens if you sell.

What to bring to a consultation

• Your last 12 months of electric bills and your current plan
• Your provider’s current buyback terms, if you have solar or are looking at plans
• What you’d want a battery to keep running
• Your roof’s age and condition

Common questions

Do I lose the property tax exemption if I go solar? Texas has generally exempted the added value from solar from property taxes, but confirm how it applies in your county.

Is solar worth it without net metering? It can be, especially with storage, but the answer depends on your usage and your provider’s buyback plan.

Will a battery keep everything on? That depends on its size and what you run. Many people back up essentials first.

Explore solar and storage, battery storage and our Houston page.

Get your free updated solar + battery savings estimate. Call 800-306-6953 or visit empoweryourhome.com.