How to Get the Rainwater Harvesting Rebate Program

What you get

SMTX Utilities pays $0.50 per gallon of storage capacity for non-pressurized rainwater systems and $1.00 per gallon for pressurized systems, in both cases capped at 50% of the purchase price. The maximum rebate per property is set by water meter size: $5,000 on a standard 5/8 x 3/4 inch residential meter, rising to $20,000 for 2 inch and larger meters. The rebate covers materials and labor for new finished barrels or tanks, tank pads, first-flush diverters, primary filtration, and pumps; gutters, miscellaneous pipe and fittings, advanced treatment, and irrigation components do not qualify. The rebate is issued as a credit on the utility bill (SMTX Utilities Rainwater Harvesting Rebate Program packet, last verified August 2026).

• Residential: $0.50/gallon of storage (non-pressurized) or $1.00/gallon (pressurized), up to 50% of purchase price; max $5,000 on a standard residential meter

Are you eligible?

• Be a SMTX Utilities (City of San Marcos) customer
• Property located in: San Marcos
• Existing SMTXU water utility customer with an account in good standing
• Small systems under 500 gallons: purchase and install first, then submit the application with itemized receipts and photos within 60 days after purchase
• Large systems of 500 gallons or more: submit the application with a site diagram, system drawing, and cost estimates BEFORE purchase, and wait for a Letter of Approval
• System must be installed within the SMTXU water service area and remain in use for the lifetime of the product
• Rebated amount is pre-tax and applies to new equipment and installation only

What applying usually looks like

A general guide. Always confirm the exact steps on the official program page, since each provider runs its process a little differently.

1. 1

   Apply and get written approval first

   Submit your application to SMTX Utilities (City of San Marcos) and wait for written approval before you remove any turf or start work. Starting early is the most common reason a rebate is denied.

2. 2

   Do the conversion

   Replace your lawn with the qualifying landscaping, following the eligibility requirements above.

3. 3

   Submit your claim

   After the work is done, submit your claim on the official program page. Confirm the exact forms, receipts, and any photos they require there, since those vary by program.