The 2025 Texas Solar Incentive Stack:
What DFW Homeowners Can Claim

If you’re a homeowner in Dallas-Fort Worth considering solar in 2026, the incentive landscape has changed significantly — but it hasn’t gone away. The federal residential tax credit ended after December 31, 2025, but Texas-specific incentives remain in place and are among the strongest state-level benefits in the country. Here’s a complete, accurate breakdown of what you can still claim today.

What Changed: The Federal ITC Is Gone for Homeowners

The 30% Residential Clean Energy Credit (Section 25D) expired for customer-owned solar systems installed after December 31, 2025. This was accelerated by the One Big Beautiful Bill Act signed in July 2025, which ended the credit nearly a decade ahead of its previously scheduled 2034 expiration — with no phase-down period.

If you installed a system in 2025 and own it, that credit still applies on your 2025 tax return. But for new installs in 2026 with a loan or cash purchase, there is no federal residential tax credit.

What Remains: Texas Property Tax Exemption

This Texas-specific benefit is untouched and remains one of the most valuable solar incentives in the country. Under Texas Tax Code Section 11.27, the added value that solar brings to your home is 100% exempt from property taxes. Solar typically adds 3–5% to home value in DFW — on a $400,000 home that’s $12,000–$20,000 in added equity that generates zero additional property tax.

You file Form 50-123 with your county appraisal district in the first year. After that it’s automatic. Our team handles this paperwork for every install we complete.

What Remains: Net Metering & Oncor Credits

When your system produces more than you consume, excess electricity flows back to the grid. DFW homeowners on the Oncor grid receive buy-back credits through their Retail Electric Provider. Texas doesn’t mandate 1:1 net metering, so rates vary by plan — but competitive REPs still offer meaningful solar buy-back rates, and pairing solar with battery storage to maximize self-consumption remains highly effective.

Does Solar Still Make Financial Sense in 2026?

Yes — and here’s why. The federal ITC reduced the cost of a typical DFW system by $7,500–$10,000. That’s real money, and losing it makes the math less favorable than it was in 2025. But the underlying economics still work:

• Texas electricity rates continue to rise — the savings from eliminating your bill compound over time
• The Texas property tax exemption remains intact, protecting you from higher assessments
• System costs have continued to decline — panels and inverters are materially cheaper than in 2020
• A DFW homeowner eliminating a $220/month electricity bill saves $66,000+ over 25 years regardless of federal credits

Payback periods are longer in 2026 than they were in 2025 — roughly 8–11 years for most DFW homeowners vs. 5–7 years with the ITC. But the math still delivers a strong long-term return, especially for homeowners planning to stay in their home 10+ years.