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An arrow graphic shows that Texas’s renewable portfolio standard increases from 5,880 megawatts in 2015, to 10,000 megawatts in 2030.

Carve-out: Goal of voluntary 500 MW of non-wind generation capacity by 2015
Tracking system: Texas Renewable Energy Credit Program

Texas' Goal for Renewable Energy set a target of 10,000 MW by 2025 for investor-owned utilities (IOUs) and retail suppliers. This target was already achieved by 2009, mostly through wind energy. The voluntary carve-out for non-wind renewable generation has also been met.

Solar installations have been led by cities in Texas, with San Antonio, Austin, and other municipalities and utilities offering rebates, net metering programs, and other incentives.

Latest Updates

  • Oncors 2017 Solar Photovoltaic Standard Offer Program eligible project capacity changed to 5kW–150kW for commercial customers.

Net Metering

Texas does not have statewide net metering policy. Municipalities and utilities offer net metering programs separately.



IOUs are subject to Texas standard interconnection applications and interconnection agreements.

Eligible Systems Type of Interconnection
Distributed renewable generation ≤500 kW Fast track process (no pre-interconnection study fees)
Distributed renewable generation >500 kW and ≤2 MW Distributed renewable generation standard interconnection process

System size limit: 10 MW for distributed generators, 2MW for distributed renewable generation

Liability insurance: Additional liability insurance not required for systems ≤2 MW that meet the specified technical standards

External disconnect switch: Required

Third Party Ownership

Third party solar power purchase agreements (PPAs) are allowed in Texas.

Community Solar

Texas currently does not have a statewide community solar policy or program. Third-party developers and utilities offer opportunities for community solar participation.

State Incentive Programs

Program Administrator Incentive
Renewable Energy Systems Property Tax Exemption Comptroller of Public Accounts Exemption of the amount of 100% of the appraised property value increase due to installation or construction of solar- or wind-generation equipment for on-site use.
Solar and Wind Energy Device Franchise Tax Deduction Comptroller of Public Accounts The total cost of solar energy equipment can be deducted from a company’s taxable capital, or 10% of the system’s cost may be deducted from the company’s income.
LoanSTAR Revolving Loan Program Comptroller of Public Accounts State, public school district, public college, public university, and tax-district supported public hospital facilities may qualify for low-cost financing for energy-related cost reduction retrofits

Utility Incentive Programs


Utility Incentive Limitations
CPS Energy (San Antonio) Solar Photovoltaic (PV) Rebate Program

Schools: $2/W-ac (watt of AC power) for the first 25 kW and $1.3/W-ac for additional capacity

Residential customers: $1.6/W-ac

Commercial customers: $1.60/W-ac for the first 25 kW-ac and $1.30/W-ac for any additional capacity

Residential and commercial customers not using local, registered CPS Energy Installers: $1.30/W-ac

Maximum rebate of $80,000


Maximum rebate of $25,000

Maximum $80,000 rebate or 50% of rebate equipment installation labor and material costs

Maximum $25,000 for residential and $80,000 for commercial

Austin Energy Solar PV Rebate (production-based incentive)

Multi-family: 0.09 $/kWh

Small commercial and nonprofit: $0.05/kWh to $0.08/kWh

Large commercial: $0.02/kWh to $0.04/kWh

Small commercial and nonprofit system capacity range: 500 kW-ac to 2000 kW-ac

Large commercial system capacity: 4000 kW-ac

Oncor Commercial and Industrial Rebate Program $538.53 kW-ac + $0.2519 kWh Commercial system sizes are limited to an installed capacity between 5kWDC and 50 kW-dc, or an AC output less than or equal to 75% of the site’s maximum demand over the past 12 months. Facility must have electric delivery service provided by Oncor.
AEP Texas North Company Residential $1.20/W
Nonresidential $1.05/W

Maximum $10,500 per residential customer (equivalent to a 10-kW system)

Maximum $25,000 per non-residential customer (equivalent to a 25-kW system)

Maximum $81,450 per service provider or project owner.


The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Renewable Portfolio Standard

Net metering and interconnection

Programs and incentives