How to Get Solar Incentives in Fort Worth

Fort Worth, Texas, is rapidly emerging as a leader in residential and commercial solar energy adoption across the Lone Star State. With over 300 days of sunshine annually, abundant rooftop space, and a growing community of environmentally conscious homeowners and business owners, the city presents a prime opportunity to harness solar power. But beyond the environmental benefits, one of the most compelling reasons to go solar in Fort Worth is the availability of financial incentives that significantly reduce upfront costs and accelerate return on investment.

Getting solar incentives in Fort Worth isn’t just about filling out a form—it’s a strategic process that requires understanding local, state, and federal programs, navigating utility policies, and timing your installation correctly. Whether you’re a first-time solar adopter or looking to maximize your savings, this comprehensive guide walks you through every step needed to secure the full range of solar incentives available in Fort Worth. By the end of this tutorial, you’ll know exactly how to reduce your solar system cost by 30% or more, avoid common pitfalls, and position yourself for long-term energy independence.

Step-by-Step Guide

Step 1: Understand the Types of Solar Incentives Available in Fort Worth

Before taking any action, it’s critical to recognize the different categories of incentives that apply to solar installations in Fort Worth. These fall into three main buckets: federal, state, and local/utility-based.

Federal Investment Tax Credit (ITC): The most significant incentive available nationwide is the 30% federal tax credit, established under the Inflation Reduction Act of 2022. This credit applies to the total installed cost of your solar system—including panels, inverters, mounting hardware, and labor. You can claim this credit on your federal income taxes in the year your system is placed in service. There is no income cap, and the credit is refundable through 2032, meaning even if you don’t owe taxes, you may still receive a refund.

Texas State Incentives: Texas does not offer a state-level solar tax credit or rebate program. However, the state provides robust property tax exemptions for solar installations. Under Texas Tax Code Section 11.27, the added value of your solar system is excluded from your property tax assessment. This means your home’s appraised value won’t increase due to the solar panels, protecting you from higher property taxes despite the increased home value.

Local Utility Incentives: Fort Worth residents are served by Oncor Electric Delivery, the state’s largest transmission and distribution utility. While Oncor does not offer direct cash rebates for residential solar, it operates a net metering program that is among the most favorable in Texas. Net metering allows you to receive full retail credit for excess electricity your system sends back to the grid. This effectively turns your meter backward during sunny days and offsets your nighttime usage.

Additionally, some local nonprofit organizations and community solar programs offer small grants or financing assistance for low-to-moderate income households. These are limited but worth exploring if you qualify.

Step 2: Assess Your Home’s Solar Potential

Not every roof is ideal for solar. Before applying for incentives, conduct a preliminary assessment to determine whether your property is a good candidate.

Start by evaluating your roof’s orientation and shading. South-facing roofs in the Northern Hemisphere receive the most direct sunlight. East- and west-facing roofs can still be effective, but may produce 10–20% less energy. Avoid roofs with heavy shading from trees, chimneys, or neighboring buildings during peak sun hours (10 a.m. to 4 p.m.).

Use free online tools like Google’s Project Sunroof or the National Renewable Energy Laboratory’s PVWatts Calculator to estimate your solar potential. Input your address, roof dimensions, and typical electricity usage. These tools will give you an estimated annual production, cost savings, and payback period—critical data for justifying your investment and applying for incentives.

If your roof is old or in poor condition, consider a structural inspection. Most solar installers offer free assessments, and some will even include roof reinforcement as part of their service package. A structurally sound roof ensures your system lasts 25+ years without costly repairs.

Step 3: Choose a Reputable Solar Installer

Selecting the right installer is one of the most important decisions you’ll make. A qualified installer will not only design a system that meets your energy needs but also handle all incentive applications, permitting, and interconnection paperwork on your behalf.

Look for installers who are:

• Certified by the North American Board of Certified Energy Practitioners (NABCEP)
• Locally based with at least 5 years of experience in the Fort Worth market
• Offering warranties of at least 10 years on workmanship and 25 years on panels
• Transparent about pricing, with no hidden fees

Ask for references from past clients in your neighborhood. Check reviews on Google, the Better Business Bureau, and EnergySage. Avoid companies that pressure you into signing contracts on the spot or promise “guaranteed” savings without reviewing your utility bills.

Once you’ve selected an installer, they will conduct a detailed site survey and provide a customized proposal. This document should include:

• System size (in kilowatts)
• Estimated annual energy production
• Upfront cost before incentives
• Net cost after federal tax credit
• Projected payback period
• Equipment brands and efficiency ratings

Compare at least three proposals. The lowest price isn’t always the best—quality components and professional installation matter for long-term performance and warranty validity.

Step 4: Apply for the Federal Solar Tax Credit (ITC)

The federal tax credit is automatic—you don’t apply for it through a government portal. Instead, you claim it when you file your annual federal income tax return using IRS Form 5695.

To claim the credit:

1. Keep all receipts and documentation from your installer, including the contract, equipment invoices, and proof of installation completion.
2. Ensure your system meets IRS criteria: it must be new, located at your primary or secondary residence in the U.S., and used to generate electricity for your home.
3. Complete IRS Form 5695, Part I, “Residential Energy Credits.” Enter the total qualified solar electric property costs on Line 1.
4. Transfer the credit amount to your Form 1040.

Important: The credit applies to the total system cost, including sales tax and installation labor. If your credit exceeds your tax liability for the year, the unused portion can be carried forward to future tax years. For example, if your system costs $20,000, your credit is $6,000. If you only owe $4,000 in federal taxes this year, you’ll get $4,000 now and $2,000 next year.

Consult a tax professional or use IRS-approved tax software to ensure accurate filing. Do not rely on your installer to file your taxes—they are not tax advisors.

Step 5: Confirm Net Metering Enrollment with Oncor

Net metering is your most valuable local incentive. It effectively allows you to “bank” excess solar energy as credits on your bill. When your panels produce more than you use—typically during midday—the surplus flows back to the grid, and your meter runs backward.

To enroll:

1. After your system is installed and inspected, your installer will submit an interconnection application to Oncor.
2. Oncor will review the application and schedule a bi-directional meter swap (if you don’t already have one).
3. Once approved, you’ll receive a letter confirming your net metering enrollment.
4. On your monthly bill, you’ll see “net energy” usage: if you produced more than you used, you’ll have a credit. If you used more than you produced, you’ll pay the difference.

Important: Texas law requires utilities to offer net metering to customers with systems up to 100 kW in size. Fort Worth residential systems typically range from 5–10 kW, so you’re well within the limit. Credits roll over month to month, and Oncor pays out annual excess generation at the avoided cost rate (not retail) in June. This payout is typically small but adds to your savings.

Step 6: Claim Your Property Tax Exemption

Even though Texas doesn’t offer cash rebates, the property tax exemption is a powerful financial benefit that saves you thousands over time.

To claim it:

1. After your solar system is installed, obtain a certificate of completion from your installer.
2. Submit this document to the Tarrant County Appraisal District (TCAD) along with Form 50-123, “Application for Exemption for Solar Energy Devices.”
3. TCAD will review your application and adjust your property’s appraised value to exclude the solar system’s added value.
4. The exemption is automatic for future years once approved.

You can file this form online via the TCAD website or in person at their office. Do not wait—file within 120 days of installation to avoid penalties. The exemption applies only to the value of the solar system, not your entire home. For example, if your system adds $15,000 in value, your property taxes will be calculated as if your home is worth $15,000 less.

Step 7: Explore Additional Local Programs and Financing

While Fort Worth doesn’t have city-sponsored solar rebates, several programs can still reduce your cost:

• PACE Financing: Property Assessed Clean Energy (PACE) programs allow you to finance solar through your property tax bill. In Tarrant County, the PACE program is available for commercial properties but not yet for residential. Check for updates, as legislation may expand access.
• Community Solar: If your roof isn’t suitable for panels, you can subscribe to a local community solar garden. Oncor partners with third-party providers to offer shared solar subscriptions. You’ll receive bill credits based on your share of the array’s output without installing panels on your property.
• Nonprofit Grants: Organizations like Solar United Neighbors and GRID Alternatives occasionally offer grants or discounted installations for qualifying low-income households in North Texas. Income limits apply—typically 80% of the area median income.
• Manufacturer Rebates: Some solar panel or battery manufacturers offer limited-time rebates. For example, Tesla, SunPower, and LG have offered $200–$500 cash rebates on specific models. Ask your installer if any are currently active.

Step 8: Monitor and Maintain Your System

Once your system is live, don’t forget ongoing maintenance. Most modern solar systems require little upkeep, but regular monitoring ensures maximum performance and continued eligibility for incentives.

Use your installer’s monitoring app (or a third-party tool like Enphase or SolarEdge) to track daily production. Look for sudden drops in output, which may indicate shading, dirt buildup, or equipment failure.

Annually, clean your panels with water and a soft brush if rainfall isn’t sufficient. Trim nearby tree branches that may cast shadows. Keep records of maintenance for warranty claims.

Also, retain all documentation—tax forms, utility correspondence, warranty cards—for at least seven years. You may need them for future home sales or audits.

Best Practices

Time Your Installation Strategically

The federal solar tax credit is set to step down after 2032: from 30% to 26% in 2033, then 22% in 2034, and 10% for commercial systems only after that. To maximize your savings, install your system before the end of 2032. If you’re planning a renovation or new construction, coordinate your solar installation to coincide with the project’s completion date to qualify for the full credit.

Don’t Skip the Permitting Process

Fort Worth requires a building permit for solar installations. Your installer should handle this, but verify that permits are pulled and inspections are scheduled. Skipping permits can invalidate your eligibility for incentives and create issues during home resale.

Understand the Impact on Home Value and Resale

Solar panels increase home value by an average of 4.1%, according to Zillow. However, if you lease your panels instead of owning them, this benefit disappears. Leasing can also complicate home sales, as buyers must assume the lease or pay it off. Always opt for purchase or financing (loan) over leasing to retain full ownership and incentive eligibility.

Combine Solar with Battery Storage

Adding a battery like the Tesla Powerwall or LG Chem RESU increases your system’s value and qualifies for the full 30% federal tax credit. Batteries store excess solar energy for use during outages or peak rate periods. In Fort Worth, where summer grid stress is common, batteries provide resilience and can further reduce reliance on the grid.

Keep Detailed Records

Organize all documents in a digital folder: contracts, invoices, inspection reports, tax forms, utility correspondence, and warranty documents. Use cloud storage with backup. This makes future tax filings, system repairs, or home sales smoother.

Engage with Your Community

Join local solar advocacy groups like the North Texas Solar Energy Society. Attend city council meetings where energy policy is discussed. Community pressure has led to expanded solar access in other Texas cities. Your voice can help shape future incentives.

Avoid Common Mistakes

• Don’t sign a contract before comparing multiple quotes.
• Don’t assume your utility will automatically enroll you in net metering—confirm enrollment in writing.
• Don’t delay filing for property tax exemption—late filings can result in back taxes.
• Don’t install panels yourself unless you’re a licensed electrician—DIY systems rarely qualify for incentives or insurance coverage.
• Don’t ignore system size—oversizing your system beyond your annual usage may reduce net metering benefits, as excess credits are paid at lower rates.

Tools and Resources

Online Calculators

• Project Sunroof (https://sunroof.withgoogle.com) – Estimates solar potential using satellite imagery and local weather data.
• PVWatts Calculator (https://pvwatts.nrel.gov) – Developed by NREL, this tool gives detailed production estimates based on location, tilt, and system size.
• EnergySage Solar Marketplace (https://www.energysage.com) – Compares quotes from pre-vetted installers in Fort Worth and across Texas.

Government and Utility Resources

• Database of State Incentives for Renewables & Efficiency (DSIRE) (https://www.dsireusa.org) – The most comprehensive source for incentive information. Search “Fort Worth, TX” for updated policies.
• Oncor Net Metering (https://www.oncor.com/residential/net-metering) – Official guidelines, forms, and FAQs.
• Tarrant County Appraisal District (https://www.tcad.org) – File your property tax exemption and view property records.
• IRS Form 5695 (https://www.irs.gov/forms-pubs/about-form-5695) – Download and instructions for claiming the federal tax credit.

Local Organizations

• Solar United Neighbors – Offers group purchasing programs and educational workshops in North Texas. Visit https://solarunitedneighbors.org.
• GRID Alternatives Texas – Provides solar installations for low-income households. Eligibility based on income and household size. Visit https://gridalternatives.org/texas.
• Texas Solar Energy Society – Hosts events, webinars, and advocacy campaigns. Visit https://texas-solar.org.

Financial Tools

• Loan Calculators – Use Bankrate or NerdWallet to compare solar loan rates. Many local credit unions offer low-interest solar loans (as low as 3.99% APR).
• Payback Calculator – Plug your numbers into the calculator on EnergySage to estimate how many years until your system pays for itself.

Real Examples

Example 1: The Ramirez Family – Single-Family Home in North Fort Worth

The Ramirezes own a 2,100 sq. ft. home built in 2005. Their average monthly electric bill was $185. After a site assessment, they installed a 7.2 kW solar system with 20 high-efficiency panels, a string inverter, and a Tesla Powerwall 2. Total installed cost: $22,000.

They claimed the 30% federal tax credit: $6,600. They filed for the Texas property tax exemption, avoiding an estimated $450/year in additional property taxes. Their net cost: $15,400.

With net metering, they now pay $10–$20 per month in minimal grid charges during winter. Their system produces 10,200 kWh annually—110% of their usage. They receive annual cash payouts of $85 from Oncor for excess generation.

Payback period: 7.2 years. After that, they enjoy free electricity for the remaining 18+ years of the system’s life. Their home value increased by $9,000 according to a recent appraisal.

Example 2: The Johnsons – Low-Income Household in South Fort Worth

The Johnsons qualify for GRID Alternatives’ program. They received a 4.5 kW system installed at no cost, funded by a combination of federal grants and nonprofit donations. They still benefit from net metering and the property tax exemption. Their monthly bill dropped from $170 to $8. Their children’s school science project now includes real-time solar production data from their roof.

Example 3: A Small Business in Downtown Fort Worth

A local coffee shop installed a 15 kW rooftop system to offset its high daytime energy use. With the 30% federal credit, they saved $14,700. They also qualified for the Modified Accelerated Cost Recovery System (MACRS) depreciation, which allowed them to deduct 80% of the system cost over five years as a business expense. Combined, their total savings exceeded $22,000. Their energy costs dropped 90%, and they now market themselves as “100% solar-powered.”

FAQs

Do I need to own my home to get solar incentives in Fort Worth?

Yes. Federal and state incentives require you to own the solar system. Renters cannot claim the tax credit or property tax exemption. However, renters can join community solar programs to receive bill credits without installing panels.

Can I get solar incentives if I install panels on a garage or shed?

Yes, as long as the system is located on property you own and is used to generate electricity for your home. Detached structures like garages, sheds, or carports are eligible if they are connected to your home’s electrical system.

What happens if I sell my home before the payback period?

Selling your home with a solar system can increase its market value and appeal. Buyers are often willing to pay a premium for homes with low-energy bills. The tax credit and property tax exemption are non-transferable, but the system’s value transfers with the property.

Can I get incentives for adding solar to an existing system?

Yes. If you expand your system after the initial installation, you can claim the federal tax credit on the cost of the new components, provided the expansion is completed before 2032. Keep separate invoices for original and added equipment.

Are there income limits for solar incentives in Fort Worth?

No federal or state incentives have income caps. However, some nonprofit or community programs (like GRID Alternatives) do have income eligibility requirements. Always check program guidelines.

Do solar panels increase my homeowners insurance?

Typically, no. Most insurers cover solar panels under your existing policy at no extra cost. Notify your provider of the installation to ensure full coverage for damage or theft.

Can I use solar incentives for a second home?

Yes. The federal tax credit applies to both primary and secondary residences. You cannot claim it for rental properties unless you live in them part-time.

What if my system doesn’t produce as much as expected?

Most installers guarantee a minimum production level in their contract. If your system underperforms, contact your installer—they’re responsible for troubleshooting and repairs under warranty. Monitor your system regularly to catch issues early.

Are battery storage systems eligible for incentives?

Yes. If the battery is charged at least 75% by your solar panels, it qualifies for the full 30% federal tax credit. Standalone batteries (not paired with solar) do not qualify.

How long does the entire process take?

From initial consultation to system activation, the average timeline is 60–90 days. Permitting and utility approval can take 3–6 weeks. Installation typically takes 1–3 days. Tax credit filing occurs when you file your annual return.

Conclusion

Getting solar incentives in Fort Worth is not a one-time transaction—it’s a strategic, multi-step process that combines federal policy, state law, utility programs, and local resources. By following the steps outlined in this guide, you can reduce your solar system cost by more than 30%, eliminate your electric bill, increase your home’s value, and contribute to a cleaner energy future.

The federal tax credit remains the cornerstone of your savings, but the Texas property tax exemption and Oncor’s net metering program are equally powerful. Together, they create one of the most financially attractive solar environments in the country. With over 300 days of sun and supportive policies, Fort Worth is a leader in solar adoption—and now, you have the tools to join it.

Take action today. Get your home assessed, compare installer quotes, and file for your tax credit. The longer you wait, the less you save. Solar is not just an investment in energy—it’s an investment in your financial freedom. Make the most of it.