Solar in DFW After the Federal Tax Credit: The Honest 2026 Numbers
The 30% federal residential solar tax credit — Section 25D — ended for systems placed in service after December 31, 2025. Solar can still make financial sense for many DFW homes in 2026, but the math changed, and any installer still quoting you a federal credit on a purchased system is working from outdated numbers.
What Ended: the Section 25D Residential Credit
Under the One Big Beautiful Bill Act signed in July 2025, the Residential Clean Energy Credit terminated for expenditures after December 31, 2025. For a homeowner buying a system outright in 2026, the federal credit is 0%. That's a real change — on a typical purchase it was worth thousands of dollars — and it's why we re-run every solar proposal on post-credit economics instead of recycling 2025 sales math. If your system was placed in service on or before December 31, 2025, talk to your tax professional about claiming it on your 2025 return.
What Survived: Texas Incentives Still on the Table
- Property tax exemption — Texas Tax Code §11.27 exempts 100% of the value a solar installation adds to your home from property taxes. Your system raises your home value, not your tax bill.
- Solar buyback plans — several Texas retail electricity providers credit you for power exported to the grid. Plan terms vary widely, and we walk through them during design.
- Third-party ownership — leased and PPA systems can still capture federal value through the commercial 48E credit, claimed by the provider and reflected in your rate. Read those contracts carefully.
- Battery + time-of-use arbitrage — storing your solar production and using it during peak-rate hours is an everyday economic benefit, not just outage protection.
Buying vs. Leasing in 2026
| Buy (Cash or Loan) | Lease / PPA | |
|---|---|---|
| Federal incentive | None — 25D ended after 2025 | 48E credit captured by the provider |
| Who owns the system | You — including the warranty and the exported power | The provider, for the contract term |
| Long-term economics | Higher upfront, all savings are yours | Lower entry, savings shared with the provider |
| Best for | Owners staying put who want maximum lifetime value | Homeowners prioritizing low upfront cost |
Where the Math Still Works
The strongest 2026 cases share a profile: high summer usage, a roof with good sun exposure, an electricity plan with peak pricing or free-nights structure, and a battery in the design. Add the §11.27 property tax exemption and a 25-year limited warranty on Enphase IQ8 microinverters, and a well-designed system still pays for itself — just on a longer, honest timeline than the 2025 sales pitch. And if your roof or usage profile doesn't pencil out? We'll tell you. We'd rather keep you as an HVAC customer than sell you a bad solar system.
This article is general information, not tax advice — confirm your situation with a tax professional.
Sources: IRS — Residential Clean Energy Credit (Section 25D) · Texas Comptroller — Property Tax Exemptions · Enphase — System Warranties
Quick Answers.
I installed solar in 2025 — can I still claim the 30% credit?
If your system was placed in service by December 31, 2025, the Section 25D credit applied to that tax year. Consult your tax professional about your 2025 return — Phanton Mechanical does not provide tax advice.
Does Texas have its own solar tax credit?
No — Texas has no state income tax, so there is no state solar income-tax credit. The main state-level incentive is the property tax exemption under Tax Code §11.27, plus utility and retail-provider programs that vary by territory.
Are solar buyback plans worth switching for?
Sometimes. Buyback rates, monthly fees, and plan structures vary widely between Texas retail electricity providers, and the best fit depends on your production profile and usage pattern. We model your specific numbers during system design rather than promising a blanket answer.
Talk to the team that did the work.
Related: Solar & Battery Storage services · Residential services