If you've been putting off a solar or battery storage decision, this summer is a good time to catch up on what's actually changed. Between federal tax credit shifts, falling battery prices, and Texas-specific rebate programs, the math on going solar (or adding storage to an existing system) looks different than it did even a year ago. Here's a rundown of the biggest developments and what they mean if you're in the Houston or Dallas area.
The Federal Tax Credit Landscape Has Shifted
The residential 30% federal tax credit under Section 25D officially sunset at the end of 2025, which means homeowners who purchase a battery or solar system outright — with cash or a loan — can no longer claim that credit on their taxes. That's a real change, and it's worth knowing about before you get a quote that assumes otherwise.
The upside: this shift doesn't erase the value case for storage, it just changes where the savings come from. Businesses and third-party system owners still have access to the Section 48E commercial credit through 2032, which is one reason solar leasing and PPA options remain attractive for homeowners who want to capture savings without the upfront tax complexity. If you're evaluating cash purchase versus lease, this is the first question worth asking your installer.
Battery Prices Are Still Falling
Here's the encouraging counterweight: even with the federal credit gone, hardware costs are dropping. Section 201 tariffs on imported solar and storage components expired earlier this year, and combined with continued manufacturing scale-up, analysts are projecting battery system costs to fall another 10–20% during 2026. In practice, that means the batteries we're quoting today — units like the FranklinWH aPower 2, EG4 WallMount, and Sigenergy SigenStor — are landing at better price points than they were even six months ago, which helps offset the loss of the federal credit for a lot of homeowners doing the math.
Texas Incentives Are Doing a Lot of Heavy Lifting Right Now
Texas never had statewide net metering, so buyback rates from retail electric providers have always been modest — typically 4 to 12 cents per kWh, well below retail rates. That's exactly why storage has become the centerpiece of most Texas solar conversations rather than a nice-to-have add-on: a battery lets you use the solar power you generate instead of selling it back cheap and buying it back expensive later.
The good news is that utility-level incentives are stepping up to fill the gap. In the Dallas/Irving service area, Oncor's storage incentive pays out roughly $300 per kWh installed, which can put over $3,000 back in a homeowner's pocket on a standard battery. Texas also continues to offer a 100% property tax exemption on the added value solar and battery equipment brings to your home, so your system won't bump up your property tax bill. If you're in Solwel's Houston or Dallas coverage area and haven't had someone walk you through which of these programs actually apply to your utility, it's worth a phone call — the incentive landscape varies more by zip code than most people expect.
Why This Matters for Grid Reliability, Too
There's a bigger backdrop to all of this: ERCOT is forecasting roughly 9.6% demand growth in 2026 alone, driven by population growth, data centers, and rising summer peak loads. That kind of growth puts real pressure on the grid during the exact hours — hot August afternoons — when Texas homeowners most want their AC running reliably. Battery storage paired with solar doesn't just save money; it gives your household a hedge against tightening grid conditions during peak summer demand, which is a trend that isn't going away anytime soon.
Solwel Is Watching This Closely So You Don't Have To
Prices, tariffs, and incentive programs shift fast in this industry, and it's easy for a quote to go stale the moment a program changes. At Solwel, we stock hybrid inverters and battery storage systems from FranklinWH, EG4, Sigenergy, and other leading brands, with fast fulfillment out of our Houston (4620 S Sam Houston Pkwy W, STE 450, Houston, TX 77053 — (346) 432-4228) and Dallas (350 S Belt Line Rd, STE 108, Irving, TX 75060 — (469) 773-1219) locations. Whether you're a contractor speccing a job around current incentives or a homeowner trying to figure out what still makes financial sense this year, our team stays current on this stuff so you don't have to sort through it alone.
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