As the fourth sunniest state in the union, Texas offers many advantages for anyone interested in installing solar panels on their home. All that sun can translate into free energy. Adding a green energy option can also put money in your pocket with a rebate or other incentive.
While electric rates are low in Texas, average consumption is pretty high since most of the year; residents run the AC constantly. Texas solar incentives are designed to reduce electric use from the grid and even pay you to send energy the other way.
Let’s take a look at the solar power incentives offered for Texas residents.
As most of the time, incentives come in the form of tax credits, it makes sense to start by looking at what’s offered by the federal, state, and local governments.
The best known is the Solar Investment Tax Credit from the federal government, which gives you a dollar-for-dollar cut in your income taxes. Unfortunately, the residential credit is set to end after 2023, although Congress has extended that deadline several times and might do so again. Currently, you can receive a 26 percent tax credit for systems installed by the end of 2022, which drops to 22 percent for 2023 installations.
While Texas has no state property tax, a property tax exemption exists to help you avoid having your home value skyrocket as a result of installing solar panels. It works as a combination state and local tax credit and has been in place since 1978.
Homeowners may apply to the chief appraiser for the exemption in their appraisal district by April 30 of the year after installing a system. The exemption applies to the home until it changes ownership.
Utility Company Incentives
Most solar incentives in Texas come via utilities in the form of buybacks and rebates. The buyback plans work by offering bill credits in exchange for the excess solar power your panels generate. You’ll also see this called net metering, and the utility company can then sell the overproduced energy back to the grid.
Most of the big providers offer buyback programs, including TXU, Reliant, and Green Mountain.
Companies also offer rebates to reduce the cost of your installation, usually offered on a price-per-watt basis capped at a project maximum. The amounts and length of the rebate vary by utility. For example, in the San Antonio area, CPS offers a flat incentive of $2,500 per project right now available on a first-come, first-served basis.
A solar installer like blueravensolar.com/texas/ can get you more information and help you get signed up for the rebates.
Take Advantage of Texas Solar Incentives
Saving on your energy bills is a big motivator for those looking at a solar panel installation. With the Texas solar incentives listed here, there’s never been a better time to save on the initial cost as well. Talk to your installer or utility provider about specific solar rebates offered in your area.
Interested in learning more about solar power and tax incentives? Check out other articles on our site for more information.