Texas Solar Rebates and Incentives

Renewable Energy Systems Property Tax Exemption

Program Type Property Tax Deduction
Technologies Photovoltaics, Solar Thermal Electric, Solar Water Heat, Passive Solar Space Heat, Solar Space Heat, Solar Thermal Process Heat, Wind, Biomass, Storage Technologies, Solar Pool Heating, Anaerobic Digestion
Amount Exemption equal to extra value added to property via solar energy installation
Required Documentation Form 50-123
Official Web Site http://www.seco.cpa.state.tx.us/re_incentives-taxcode-statutes.htm

Under the Texas property tax code, property owners are allowed to exempt the value that a solar-power or other renewable-energy installation adds to the value of the property. So, if a resident added a $30,000 PV-system to their $180,000 property, they would be able to exempt only the appraised value of the system from their property tax. Which would be $30,000 of the $210,000 value of the property after installing the system.

This exemption covers a broad array of solar energy products, including PV, solar thermal power and more. Under the term “solar energy device,” the state includes “the production and distribution of thermal, mechanical, or electrical energy for on-site use, or devices used to store that energy.” Solar may also refer to biomass technologies in Texas.

The state maintains a list of eligible devices at the link above.

To qualify, applicants must fill out state tax Form 50-123, “Exemption Application for Solar or Wind-Powered Energy Devices."

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