Tyler, TX Solar Panels

Under Texas Tax Code §11.27, homeowners who install a solar energy system are entitled to a 100% property tax exemption on the increase in appraised home value attributable to the solar installation. Because solar systems can add $15,000–$25,000 or more to a home’s assessed value, this exemption typically saves homeowners $400–$600 per year in property taxes — adding up to more than $10,000 over the lifetime of the system.

To claim the exemption, you must file Form 50-123 (Exemption Application for Solar or Wind-Powered Energy Devices) with your county appraisal district by April 30 of the year following installation. The exemption applies statewide across all Texas counties and remains in effect as long as the solar device is operational — you do not need to re-file annually unless you expand your system.

Eligibility requires that the solar system be owned (not leased) and primarily used for producing and distributing energy on-site. This is currently Texas’ most universally available solar incentive for 2026, as it applies to every homeowner in the state regardless of their utility provider — including residents of Tyler.

Texas does not require utilities to offer net metering. Instead, approximately 85% of the state operates in a deregulated electricity market (ERCOT), where homeowners can shop for a Retail Electric Provider (REP) that offers a solar buyback plan. Buyback rates vary widely by provider — for example, TXU Solar Buyback in the Oncor/DFW territory offers retail-rate credits (effectively 1:1 net metering), Green Mountain Energy in the CenterPoint/Houston area pays approximately 8.5¢/kWh, and Chariot Solar Buyback in AEP/TNMP territory pays around 7.0¢/kWh.

Because buyback rates and plan terms change frequently, it is critical for homeowners in Tyler to compare REP solar buyback plans before or shortly after installing your system. Contracts typically run 12–36 months. Choosing the right REP can significantly impact your solar payback period, so always verify current rates directly with providers before signing.

Oncor’s Residential Solar Program provides significant rebates — up to $9,000 — for homeowners in the Oncor service territory (Dallas-Fort Worth, Waco, Midland, Tyler, Wichita Falls, and surrounding areas). Critically, battery storage is required to qualify; solar-only systems are not eligible for this rebate. The solar system must be between 3 kW and 15 kW in size and installed with a qualifying battery storage system.

The exact rebate amount is not fixed — it depends on multiple factors including the specific solar panels and inverter chosen, the system’s location, shading conditions, and available program funding at the time of application. Homeowners in Tyler should contact Oncor or a participating installer to get a rebate estimate specific to their system design before committing to a purchase.

The program typically runs from February through November each year, or until annual funding is depleted — whichever comes first. Because this is one of the largest utility rebates available in Texas, demand is high and funds can run out well before November. Homeowners in Tyler are strongly encouraged to apply as early in the year as possible to maximize their chances of receiving the full rebate amount.

Tesla’s Virtual Power Plant (VPP) Program is available to Powerwall owners in select areas of the Oncor (Dallas-Fort Worth) service territory — which includes Tyler — who use Tesla Electric as their Retail Electric Provider (REP). Enrolled participants receive a $10 per month electric bill credit in exchange for allowing Tesla to remotely discharge their Powerwall battery to help reduce stress on the grid during high-demand periods.

Participation in the VPP program is voluntary and does not significantly impact the homeowner’s backup power availability, as Tesla’s dispatch events are managed to preserve a minimum battery reserve. The program provides a simple, passive income stream for Powerwall owners — $120 per year — with no additional equipment or action required beyond enrollment.

To participate, homeowners must be Tesla Powerwall owners, reside in an eligible Oncor service area, and sign up for Tesla Electric as their REP. This program is particularly attractive for homeowners in Tyler who have already invested in a Powerwall and want to maximize their return on investment through ongoing monthly credits, especially now that the federal residential battery tax credit has expired.

The Texas Energy Fund allocates $1.8 billion statewide to strengthen backup power at critical public facilities through a combination of grants and low-interest loans. Funded systems must combine battery storage with solar PV and/or backup generators to qualify under the Backup Power Package Program. This program was created in response to grid reliability concerns following major weather events in Texas.

Eligible facilities include hospitals, water treatment plants, emergency shelters, fire and police stations, communication centers, and other emergency response hubs that serve critical loads. The program is exclusively for public sector entities — private homeowners and businesses are not eligible. Schools, cities, counties, and other governmental bodies may apply for funding to install resilient energy systems at qualifying facilities.

Applications are reviewed on a competitive basis, with priority given to facilities that serve the most critical community functions. Public entities in Tyler interested in applying should visit the Texas Energy Fund’s official website for current application windows, funding availability, and eligibility requirements, as program details and deadlines are updated regularly.

TX-PACE (Property Assessed Clean Energy) is a financing mechanism available in select Texas jurisdictions that allows commercial and residential property owners to fund solar PV and battery storage installations through long-term loans repaid via their property tax bill. Because the loan is secured by the property itself rather than the borrower’s credit, interest rates are often lower than traditional financing options, and repayment terms can stretch 10 to 25+ years, significantly reducing monthly payment obligations.

TX-PACE financing is particularly useful for property owners in Tyler who want to go solar but lack the upfront capital or prefer not to take on a traditional loan. The financing amount can cover 100% of the project cost, including solar panels, inverters, battery storage, installation, and permitting fees. When the property is sold, the PACE obligation can transfer to the new owner along with the property, though this must be disclosed during the sale.

Availability of TX-PACE varies by jurisdiction — not all Texas counties and municipalities have adopted enabling legislation. Property owners should check with their local government or visit the SECO website to determine whether their property is located in a PACE-eligible jurisdiction and to find authorized PACE program administrators operating in their area.

The LoanSTAR (Loans to Save Taxes and Resources) Program, administered by the Texas State Energy Conservation Office (SECO), provides low-interest revolving loans to public entities in Texas for energy-saving projects, including solar PV installations. Eligible borrowers include state agencies, public universities and community colleges, public school districts, local governments, and other publicly owned facilities.

Loan funds can be used to finance the installation of solar panels, energy storage systems, and related equipment at publicly owned buildings and facilities. The program is designed so that energy cost savings generated by the project are sufficient to repay the loan over time, making it a self-funding mechanism for public entities looking to reduce long-term energy costs without burdening their operating budgets.

Interest rates under LoanSTAR are typically well below market rates, making it an attractive financing option for public entities in Tyler that may not qualify for or wish to use other financing mechanisms. Public entities interested in applying should contact SECO directly at 512-239-1000 to discuss project eligibility, loan terms, and the application process.

Gexa Energy offers an innovative Solar Buyback Plan for Texas homeowners in the deregulated ERCOT market that features no cap on solar export credits, with surplus energy automatically applied to future electric bills. This makes it a strong option for homeowners in Tyler with larger solar systems who generate significant excess electricity, as there is no ceiling on the credits they can accumulate.

For homeowners with battery storage, Gexa also offers a Battery Benefits Program that provides $50 per month in bill credits for remote battery management participation. Under this program, Gexa can remotely manage the charging and discharging of enrolled batteries to optimize grid performance during peak demand periods. Currently, only Enphase battery inverters are compatible with this program.

Additional features of Gexa’s solar plan include free solar monitoring services. Homeowners in Tyler interested in Gexa’s programs should compare the total value — including the buyback rate, battery credits, and any plan fees — against other REP solar buyback options available in their area. Plan terms and rates are subject to change, so always review the current Electricity Facts Label (EFL) before enrolling.