Am I Eligible for a Texas Solar Property Tax Exemption?
If you install solar panels on your Texas home, the added value from those panels is exempt from property taxes under Tax Code Section 11.27. That means you get the benefit of a higher home value without a higher tax bill.
Who Qualifies
You must own the solar system outright. Leased panels and power purchase agreements (where a third party owns the equipment on your roof) do not qualify.
The system must convert solar energy into thermal, mechanical, or electrical energy, and its primary use must be producing energy for onsite consumption. Qualifying equipment includes:
- Solar photovoltaic panels for electricity generation
- Solar thermal energy devices (solar water heaters)
- Solar swimming pool heaters
How to Apply
Submit Form 50-123 along with supporting documentation to your county appraisal district by April 30 of the tax year you want the exemption. Documentation typically includes:
- Photographs of the installed system
- Purchase invoices showing ownership
- A copy of your business personal property rendition (if applicable)
If the chief appraiser needs more information, you have 30 days to respond.
Solar Exemption and Property Tax Protests
The solar exemption prevents your value from increasing because of the panels, but your appraisal district can still overvalue your home through mass appraisal. If your appraised value exceeds market value, you can and should protest your property taxes regardless of whether you have a solar exemption.
At Ballard Property Tax Protest, we help homeowners across 18 Texas counties make sure their appraised value is accurate. Sign up for our risk-free service - you only pay if we lower your taxes.
