Tariffs have been dominating the news lately. Whether the trade tariffs are on or off – and it literally changes day to day – Texas consumers need to know there is one segment of the economy where the impact of tariffs is not expected to be significant anytime soon: residential solar.
Why Chinese trade tariffs shouldn’t have a major impact on residential solar pricing in the Lone Star State
The key reason that the cost of residential solar may not be dramatically affected by the Chinese trade tariffs is that in recent years, the majority of solar panels have come from countries other than China, including Vietnam, Thailand and Malaysia. The U.S. imported only 68.3 MW of solar panels directly from China in 2024. In fact, there are 12 countries that send more solar panels to the US than China, including Canada and Mexico.
And the U.S. continues to increase its solar panel production, which in 2024 achieved manufacturing capacity exceeding 40 GW. While China has historically contributed up to 80% of the components of panels, that is shifting as the US builds its own supply chain. The jury is still out on whether this will raise or lower solar costs in the short term, but the general consensus is that domestic manufacturing will be good for the long-term health of the US solar industry and good for consumers as well.
Now is the time to install residential solar in Texas
Texas homeowners are uniquely positioned to benefit from a range of solar incentives that make transitioning to renewable energy a smart financial move, especially now as the tariffs are on hold. The Lone Star State benefits from a variety of federal, state and local programs that make solar energy a solid investment for years to come. The key is to act quickly, while the tariffs are still up in the air. While some credit may be altered down the road – and even that is uncertain – by taking advantage of the financial incentives available today, homeowners can “lock in” their pricing and credits.
Here are just a few of the credits, exemptions, rebates and energy buyback programs available to Texas homeowners TODAY:
Federal Solar Investment Tax Credit (ITC)
The cornerstone of current solar incentives is the federal ITC, which offers a 30% tax credit on the total cost of solar panel systems, including installation. For a system costing $20,000, this equates to a $6,000 tax credit. This incentive is available through 2032, decreasing to 26% in 2033 and 22% in 2034, before expiring in 2035 unless extended. The credit is non-refundable but can be carried forward to future tax years.
Texas Property Tax Exemption
Solar installations can increase your home’s value by approximately 4%. And while property values continue to increase across the state, Texas law exempts this added value from increasing your property taxes. This means you benefit from the increased property value without a corresponding increase in property taxes. Given Texas’s average property tax rate of 1.6%, this exemption can result in significant annual savings. In addition, the cost of installing solar panels in Texas is below the national average, meaning you get more value from your investment from day one.
Local Utility Rebates
Whether you’re in a large metro area or a smaller municipality, there’s a good chance your local utility has a rebate or incentive program that can reduce the costs of your solar investment.
A number of Texas utility companies offer rebates to offset solar installation costs:
- Austin Energy: Offers a $2,500 rebate for residential solar installations, contingent upon completing a solar education course.Forbes
- CPS Energy: Provides rebates ranging from $2,500 to $8,500, depending on system size, location, and income.Today’s Homeowner
- Oncor: Offers rebates for qualifying solar systems, with amounts varying based on system specifications.
- American Electric Power (AEP): Provides cash incentives between $2,500 and $8,500, based on the system’s kilowatt capacity.
- SMTX Utilities Solar PV: Provides rebates up to $2,500 for qualifying solar systems
Net Metering and Buyback Programs
Many energy providers in Texas offer Net Metering to solar customers. This system allows homeowners to earn credits or compensation for the extra electricity their solar panels generate. While Texas doesn’t have a statewide net metering policy, many local utilities and retail electric providers offer their own buyback programs that work in a similar way. These programs let you send unused solar power back to the grid and receive credits that can offset your future electricity bills. Over time, these credits can lead to significant savings.
In areas served by providers like Gexa Energy, Green Mountain Energy, and Ambit Energy, homeowners can get compensated—often at or near the full retail rate—for excess solar energy their systems produce. Austin Energy credits surplus energy at a Value of Solar rate of 9.91 cents/kWh, with credits rolling over indefinitely, and El Paso Electric credits surplus energy at the retail rate, with options for receiving checks if credits exceed $50.
Lock in Long-Term Energy Savings Today
This is a chance to lock in savings today and start earning the credits and rebates guaranteed by your investment in solar, regardless of what tariffs come or go in the next few months.
Talk to one of the solar experts at Longhorn Solar and learn the facts about the credits, exemptions and rebates, as well as net metering programs that you can take advantage of from day one of your installation.
Want to add solar panels and battery backup to your home? Get a free no-hassle quote today from Longhorn Solar.
