Texas Solar Laws

As the adoption of renewable energy continues to surge, understanding Texas solar laws is crucial for homeowners, developers, and businesses. Solar systems offer a sustainable and cost-effective energy alternative, but navigating the solar energy laws at the federal, state, and local levels can be complex. From federal tax credits to Texas Home Owners Association (HOA) solar laws and city permitting processes, every layer of regulation plays a vital role in solar implementation. This article outlines the most important solar access laws, solar policy, and solar panel laws to help you make informed decisions about solar energy use in the Lone Star State.

Federal Regulations and Policies Affecting Solar Installation in Texas

While Texas solar laws are shaped primarily at the state and local levels, several federal policies significantly influence solar adoption. Below are key federal regulations that impact solar panel laws in the state.

Investment Tax Credit (ITC)

The Investment Tax Credit (ITC) is one of the most impactful federal incentives for solar energy. Homeowners and businesses in Texas can deduct a percentage of their solar installation costs from their federal taxes. As of 2025, the ITC offers a 30% credit for residential and commercial solar systems. This policy is widely adopted and complements Texas solar energy policy by reducing upfront costs.

Net Energy Metering (NEM) and Utility Interconnection Standards

While net metering is not federally mandated, federal regulations encourage utilities to allow solar system interconnection. Under the Public Utility Regulatory Policies Act (PURPA), small renewable generators, including solar systems, may connect to the grid and receive compensation for excess power. Although Texas does not have a statewide net metering law, some utilities voluntarily offer net metering under these federal guidelines, shaping how solar panel laws apply at the local utility level.

Federal Energy Regulatory Commission (FERC) Oversight

The Federal Energy Regulatory Commission (FERC) oversees interconnection policies and transmission regulations across state lines. For Texans installing larger or commercial solar systems, FERC regulations determine how excess power is sold to wholesale markets. These federal rules often intersect with solar panel installation regulations in the state.

Clean Energy Initiatives

Federal programs like the Inflation Reduction Act (IRA) and the Greenhouse Gas Reduction Fund, which are designed to address the climate crisis, provide funding and incentives for renewable energy projects. These initiatives align with Texas solar policy goals and offer additional resources for municipalities and nonprofits seeking to expand solar access.

Texas Solar Regulations and Policies

Texas has a peculiar approach to implementing solar energy laws, with less centralized oversight than many states. Nevertheless, the following state-level policies and regulations are worth noting.

Texas Property Code Section 202.010

Section 202.010 of the state’s Property Code prohibits Texas HOAs from banning solar panel installations outright. Although HOAs may impose aesthetic restrictions, they cannot prevent installation if the panels meet safety and design standards. This law protects homeowners’ rights and promotes solar panel roof regulations that balance individual freedom with community aesthetics.

Texas Property Tax Exemption for Solar Systems

Under this policy, the added value a solar system brings to your property is exempt from property taxes (Texas Tax Code Section 11.27). This financial incentive supports the state’s broader Texas solar policy to encourage renewable energy adoption. Homeowners can install solar without worrying about increased property assessments. However, to be eligible for this exemption, you must own the property and solar system on January 1 of the year.

Texas Senate Bill 1626

The passage of Texas Senate Bill 1626 closed previous loopholes that allowed developers to restrict solar installations during the early phases of subdivision development. Now, developers can only prohibit solar panels in communities with fewer than 50 units during the development period. This change strengthens Texas solar laws and expands access to solar energy for new homeowners across the state.

Texas Senate Bill 1697

Texas Senate Bill 1697 requires the state’s Public Utility Commission (PUC) to develop a guide to help customers understand home solar energy device options. It also mandates the PUC to share this guide with customers.

Local Government Energy Reporting

According to Texas Health and Safety Code §388.005(c), municipalities in ozone nonattainment zones must reduce electricity consumption by at least 5% annually for seven years, beginning September 1, 2019. This policy encourages local governments to adopt solar and aligns with broader Texas solar energy policy goals.

Net Metering Alternatives

Although Texas does not have a statewide net metering mandate, many utilities offer buyback programs that compensate homeowners for excess solar power. These arrangements, while not technically net metering, work similarly and are shaped by both Texas solar laws and utility-specific rules.

Electric Reliability Council of Texas (ERCOT) Policies

The Electrical Reliability Council of Texas (ERCOT) manages the state’s power grid and plays a role in shaping interconnection standards. While not a law-making body, ERCOT’s policies and protocols affect how solar panel installation regulations are applied, particularly for larger systems that might affect grid stability.

Does Texas Have Solar Access Laws?

Yes, Texas has solar access laws, which are established in Section 202.010 of the state’s Property Code. They protect homeowners’ rights to sunlight for energy generation. Solar access laws ensure that property owners can receive adequate sunlight to power their solar panels. These laws prevent neighbors or HOAs from obstructing sunlight through construction or landscaping. However, they are different from solar easement laws.

While solar access laws guarantee the right to sunlight, solar easement laws involve voluntary agreements between property owners. A solar easement allows one property owner to secure sunlight access across a neighbor’s land, often recorded in property deeds. Texas solar access laws prohibit municipalities and HOAs from restricting solar installations, while solar easement agreements can legally protect a solar system’s access to sunlight from neighboring construction or landscaping changes.

Under Texas solar access laws, homeowners can petition for alternate panel placement if it improves energy output by more than 10%, using tools like the PVWatts Calculator. These laws reinforce Texas solar policy by ensuring optimal system performance.

Key Elements of Texas Solar Access Laws

The following are key provisions of Texas solar access laws:

  • HOAs cannot ban solar panels outright.
  • Property owners can negotiate solar easements to protect long-term sunlight access.
  • Local governments cannot create zoning ordinances that unreasonably restrict solar use.

These provisions are integral to Texas solar laws, ensuring residents can invest in solar energy without facing excessive legal obstacles.

Do You Need Permits for Solar Installation in Texas?

Yes, most homeowners in Texas are required to obtain permits before installing solar energy systems. Solar panel installation regulations vary by municipality, but nearly all jurisdictions mandate some level of review.

Types of Required Permits

  • Electrical Permit: Ensures safe electrical connections and grid integration.
  • Building Permit: Validates the structural integrity of the rooftop or ground-mounted system.
  • Zoning Approval: Confirms the solar system meets local setback and usage requirements.
  • Utility Interconnection Approval: Required for grid-tied systems.

While these vary across counties and cities, compliance with rooftop solar panel regulations is a common requirement throughout the state.

How to Obtain Permits for Solar Installation in Texas

Installing a solar system in Texas starts with obtaining the right permits. Following the proper procedures ensures your system complies with both Texas solar laws and local building codes. Permit requirements are in place to protect consumers and ensure installations meet safety and performance standards. Navigating this process helps avoid fines, delays, or system shutdowns after installation or in the future.

The key agencies responsible for issuing solar installation permits in Texas include the following:

  • Local Building Department: Typically, the city or county planning office issues structural and electrical permits.
  • The Texas Department of Licensing and Regulation (TDLR): The Texas Department of Licensing and Regulation (TDLR) oversees electrical standards.
  • Municipal Zoning Boards: These boards approve installations in regulated districts.
  • Utility Company: The local utility company grants interconnection approvals before an installation is complete. It is also responsible for metering.
  • HOA (if applicable): HOA approval may be required in HOA-regulated communities, subject to Texas HOA solar laws.

You can take the following steps to obtain solar permits in Texas:

  • Hire a Licensed Installer – Choose a certified solar installer familiar with Texas solar energy policy and local codes.
  • Site Assessment and System Design – The installer will evaluate your roof and electrical system to design a code-compliant system.
  • Submit Permit Applications – Submit permit applications to the local building department. The application must include site layouts and system specs.
  • HOA Approval (if applicable) – Submit the solar system plan to your HOA. While they cannot deny installation outright under Texas HOA solar laws, they may enforce aesthetic rules.
  • Utility Interconnection Request – For grid-tied systems, notify and get approval from the utility company. This often involves a net meter installation or alternative buyback program enrollment.
  • Inspections – After installation, get city officials to inspect the system and confirm compliance with solar panel installation regulations and solar panel roof regulations.
  • Receive Permission to Operate (PTO) – Once approved, your utility will give you PTO, allowing the system to legally generate and export electricity.