Harness the Power of the Sun with Texas Solar Incentives and Rebates
In the Lone Star State, electricity rates are moderate, making the switch to solar an increasingly attractive option. The higher the cost of electricity in a state, the more financially viable it becomes to invest in solar panels. Electricity costs play a crucial role in determining the wisdom of such an investment, which is one of the primary drivers behind the growing popularity of renewable energy sources.
According to a report by the Solar Energy Industries Association (SEIA), Texas ranked first in the solar market in 2022, a milestone achievement. Given its abundant sunshine – ranking fourth among the sunniest states in the nation with an impressive 89.26% of sunshine throughout the year – harnessing the sun’s power through solar panels is a worthwhile investment. What’s more, Texas offers excellent solar incentives and rebates that property owners can take advantage of!
Unlock Texas Solar Incentives, Rebates, Tax Credits, and Benefits
Property Assessed Clean Energy (PACE) Financing: This innovative financing option allows Texans to finance the installation of a solar panel system by placing an assessment on their property. The financed amount can then be paid through annual property tax payments until the system is fully paid off. However, it’s important to note that not all local governments offer PACE financing. Seeking advice from a reputable solar company can help you navigate the available options and make an informed decision.
Texas Interconnection Standards: These standards govern the process of connecting solar and other electrical systems to the city grid, essentially “plugging into” the grid. Texas Interconnection Standards are statewide and apply to both electricity customers and utilities, simplifying the interconnection process and reducing associated costs. Clear standards are a definite advantage when bringing a solar energy system online and connecting it to the grid, as it enables the potential to sell excess power back to the grid.
Texas Energy Rebates: Although Texas does not have a statewide energy rebates scheme, several utility companies like CPS, Austin Energy, and local municipalities offer Texas solar incentives to property owners to reduce the cost of going solar. Rebates can be paid directly to the homeowner as a lump sum or deducted from the solar installer’s bill. The latter option can be advantageous, as the installer handles the paperwork.
Inflation Reduction Act (IRA): Eligible property owners with solar panels may qualify for a 30% tax credit on the system’s cost under the Inflation Reduction Act.
Property Tax Exemptions for Energy: This exemption is among the excellent solar incentives for property owners investing in a Texas solar energy system. It enables them to exclude the increased value of their property due to the solar system from their property assessment, effectively allowing them to continue paying the same property tax as before the installation. This makes going solar more cost-effective.
Solar Easements and Rights Laws: Texas has robust Solar Easements and Rights Laws that support property owners in working with their neighbors to ensure access to solar installation and guarantee sufficient sunlight coverage. Moreover, these laws prohibit homeowners’ associations (HOAs) from denying or obstructing a property owner’s solar energy system.
Net Metering: Net metering in Texas is mandatory, but not a statewide policy. Instead, utility companies adopt their own operating conditions. Various providers, such as CPS Energy, Green Mountain Energy, El Paso Electric, and the City of Brenham, have existing rules that credit property owners for the electricity their solar energy systems generate. If your utility provider has a net metering program and your solar system produces more energy than you consume, the excess is sold back to the grid, and you’ll see a credit on your energy bill.
Don’t Forget the Federal Tax Credit, Texas!
In addition to the tremendous Texas solar incentives and rebates mentioned above, Texans who install and own a solar system can benefit from the Federal Investment Tax Credit. This credit allows solar owners to deduct 26% of the system’s cost from their federal taxes. However, this percentage is expected to drop to 22% in 2023 and is likely to continue decreasing in the coming years, so don’t delay in exploring your solar panel options!
We encourage you to seek advice from a reputable company to discuss the solar incentives that can benefit you by switching to solar. Embrace the power of the sun and save on your energy costs with Texas solar incentives!
