The federal 30% solar tax credit expired December 31, 2025. Here's what that means for North Texas homeowners in 2026 — and what incentives are still available right now.
The Short Version
The federal Investment Tax Credit (ITC) is no longer available — it expired at the end of 2025. Texas still offers two meaningful incentives: a sales tax exemption on solar equipment (worth ~$1,500–$2,000) and a homestead property tax exemption on the added home value. Solar can still make financial sense — but the math looks different now.
Did the Federal Solar Tax Credit Expire?
Yes. The federal Investment Tax Credit (ITC) — which gave homeowners a 30% deduction off their solar installation cost — expired on December 31, 2025. It is no longer available to new residential installations in 2026. If you installed solar before the end of 2025, you can still claim it on your 2025 tax return. If you're installing now, it does not apply.
Here's how the numbers changed:
| System Cost | Old ITC (expired) | Your Cost in 2026 |
|---|---|---|
| $17,000 | $17,000 (before TX exemptions) | |
| $20,000 | $20,000 (before TX exemptions) | |
| $25,000 | $25,000 (before TX exemptions) | |
| $30,000 | $30,000 (before TX exemptions) |
Texas does still offer two incentives that reduce the effective cost — covered in the next section.
What Solar Incentives Are Still Available in Texas in 2026?
Even without the federal ITC, Texas homeowners have two real, ongoing incentives:
- Texas Sales Tax Exemption on Solar Equipment. Texas exempts solar energy devices from the 8.25% state and local sales tax. On a $20,000 system, that saves you roughly $1,500–$2,000 at purchase. You don't have to apply for it — it's automatic when you buy through a qualified installer.
- Homestead Property Tax Exemption. Texas law prohibits counties from reassessing your home's value for property tax purposes based on a solar installation. If solar adds $20,000 to your home's appraised value, you won't pay a dollar more in property taxes because of it. Over 10–15 years, this can represent thousands of dollars in avoided tax increases.
Does Texas Have a State Solar Tax Credit?
No. Texas has no state income tax, so there's no state-level income tax credit to offer. The sales tax exemption and property tax exemption are the primary state-level incentives — and they're meaningful, even if smaller than the federal ITC was.
Is Solar Still Worth It in North Texas Without the Federal Credit?
It depends on your home and situation — and the honest answer is that the math is tighter now. That said, several factors still make solar viable for the right North Texas homeowner:
- North Texas has strong sun exposure. Wise County, Parker County, and the surrounding area average roughly 5–5.5 peak sun hours per day — near the top of the national range. More sun means more production, which improves your payback timeline.
- Electricity rates in North Texas continue to rise. Even without the ITC, the value of what you produce goes up as rates increase. Your system offsets more dollar value every year rates climb.
- The Texas sales tax and property tax exemptions still apply. You save $1,500–$2,000 at purchase, and your property tax bill won't go up due to the installation.
- Oncor's interconnection process is manageable. Most Wise County and Parker County installs connect without major delays, which means your system starts producing — and offsetting your bill — faster.
- N-Tech's pricing runs $2.40–$2.90/watt installed — below the state average. Lower install cost means a shorter payback period, which matters more now that the ITC isn't reducing your starting cost.
Payback periods that ran 6–9 years with the ITC may now run 9–13 years without it, depending on system size and bill. For homeowners planning to stay in place, that's still a solid long-term investment. For homeowners considering selling in 3–4 years, the math may not pencil.
How to Think About Solar Without the Federal Credit
The ITC made solar an easier sell because it knocked 30% off the top. Without it, the decision requires more careful math — which is exactly the kind of math we do in a free consultation.
What a consultation covers: your actual roof and sun exposure, your utility bill history, what a correctly sized system would cost at current pricing, what the Texas exemptions mean for your specific situation, and what your realistic payback timeline looks like. No obligation. No pressure. Just the numbers.
Even if you decide solar doesn't work for you right now, you'll know that from a real analysis — not a guess. That's worth the 30 minutes.
The N-Tech Approach
N-Tech Energy Solutions is a North Texas company. We operate in Wise County, Parker County, Jack County, Montague County, and the surrounding communities — Decatur, Springtown, Weatherford, Azle, Bridgeport, Aledo, and more. We know the grid out here, we know the contractors, and we know what a reasonable installation looks like in this region.
Our pricing runs $2.40–$2.90 per watt installed — below the state average — because we keep our overhead lean and don't carry the sales infrastructure of the national franchises. We don't do high-pressure tactics. We build a proposal, show you the math, and let you decide.
What you'll get from us:
- A custom system design based on your actual roof and usage data
- Transparent pricing with no hidden fees
- Clear explanation of the Texas sales tax and property tax exemptions for your situation
- Financing options if you don't want to pay cash — and you'd own the system either way
- No lease or PPA arrangements — we don't believe in them for our customers
If the numbers don't work for you, we'll tell you that too. That's not a sales model — it's just how we prefer to operate.
Get the Numbers for Your Home
A free energy consultation takes about 30 minutes and costs you nothing. You'll leave knowing exactly what solar would cost, what you'd save, and what the Texas incentives mean for your specific situation.
Book a Free ConsultationOr call us directly: (214) 267-9372
