Texas Energy Rebates & Tax Credits

16 state-level programs plus 15 federal programs available to Texas residents.

Key Takeaways

Texas offers 16 energy incentive programs — ranking #3 of 51 states and 33% above the national average of 12. Residents have more options than most states.
At 13.72¢/kWh (rank #28), electricity is 2.2¢ cheaper than the national average of 15.9¢/kWh. Lower rates mean longer payback periods for solar, but rebates can still make it worthwhile.
Texas was allocated $873M in IRA (Inflation Reduction Act) funding — above the state average of $194M. Programs cover HOMES rebates ($441M) and HEEHR electrification ($432M).
IRA HOMES rebate status: Planning. HEEHR status: Planning.

State Programs

Tax Credits

Rebates

Utility Programs

Texas Electricity Rates

13.72 ¢/kWh

Residential

10.98 ¢/kWh

Commercial

7.55 ¢/kWh

Industrial

National rank: #28 | Compare all states

IRA Rebate Status in Texas

HOMES Program

Status: Planning

Funding: $441M

Largest state allocation

HEEHR Program

Status: Planning

Funding: $432M

SECO administering, expected 2026

Administered by: TX State Energy Conservation Office | Total IRA allocation: $873M

View all states →

Appliances(1 programs)

Texas Electric Appliance Rebate

$998Rebate

Electric Vehicles(1 programs)

Texas EV Charging Infrastructure Grant

$3,335Grant

Financing(1 programs)

Texas Energy Efficiency Loan Program

$8,104Low-Interest Loan

HVAC / Heat Pumps(5 programs)

AEP Texas Heat Pump Rebate

$500-$3,000Rebate

CenterPoint Energy Heat Pump Rebate

$500-$3,000Rebate

CenterPoint Energy Smart Thermostat Rebate

$50-$100Rebate

Oncor Heat Pump Rebate

$500-$3,000Rebate

Texas Heat Pump Rebate

$1,144Rebate

Solar(4 programs)

AEP Texas Solar Panel Rebate

$500-$2,500Rebate

Texas Net Metering

VariesPolicy

Texas Renewable Energy Property Tax Exemption

VariesTax Exemption

Texas Solar Rebate Program

$3,489Rebate

Water Heating(1 programs)

Oncor Heat Pump Water Heater Rebate

$300-$750Rebate

Weatherization(3 programs)

CenterPoint Energy Home Energy Audit Rebate

$100-$200Rebate

Oncor Home Energy Audit Rebate

$100-$200Rebate

Texas Home Weatherization Rebate

$1,718Rebate

Federal Programs Available in Texas

All 15 federal programs apply to Texas residents and stack with state incentives.

Battery Storage Tax Credit30%ENERGY STAR Appliance Tax Credit30% up to $1,200 EV Charger Installation Credit (EVSE)30% up to $1,000 EV Tax Credit (New Clean Vehicle)Up to $7,500 Electric Panel Upgrade Credit30% up to $600 Energy-Efficient Commercial Building Deduction (179D)Up to $5.00/sq ft Energy-Efficient New Homes Credit (45L)Up to $5,000 Geothermal Heat Pump Tax Credit30%

View all federal programs →

Frequently Asked Questions

How many energy rebate programs are available in Texas?

Texas currently has 16 state-level energy incentive programs, plus all 15 federal programs that apply nationwide. These include tax credits, rebates, utility incentives, and financing programs.

Can Texas residents claim federal energy tax credits?

Yes. All Texas residents can claim federal energy tax credits including the 30% solar credit, up to $2,000 heat pump credit, and up to $7,500 EV credit, in addition to any Texas-specific programs.

What are the IRA rebate programs in Texas?

The IRA established two rebate programs: HOMES (for whole-home energy savings) and HEEHR (for electrification like heat pumps and appliances). Each state administers these programs independently. Check our Texas state page for current launch status and funding details.

How do I apply for Texas energy rebates?

Application processes vary by program. State tax credits are claimed on your state tax return. Utility rebates typically require submitting a form to your utility company. IRA rebates are applied at the point of sale through participating contractors.

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