Incentives
Texas Solar Property Tax Exemption
Texas exempts 100% of the appraised value a solar system adds to your home. Here is how to file Form 50-123 and what it saves.
Rooftop solar adds measurable resale value to a Texas home. Under Texas Tax Code Section 11.27, the appraisal district must exempt that added value from your property taxes, which matters in a state where property tax rates commonly exceed 2%.
What the exemption is worth
If a system raises your appraised value by $18,000 in a jurisdiction with a 2.2% combined rate, the exemption saves about $396 a year, every year you own the home. Over a 25-year system life that is roughly $9,900 in avoided tax.
How to file
Submit Form 50-123, the Solar or Wind-Powered Energy Device Exemption Application, to your county appraisal district. Attach your installation invoice and the permission-to-operate letter.
Most districts treat it as a one-time filing that carries forward, but confirm with your specific district. Deadlines generally follow the April 30 property tax exemption deadline.