04 Aug Texas Solar Incentives, Tax Credits & Rebates
Texas Solar Photovoltaic Panel Incentives
They say everything in Texas is bigger, and the benefits of solar photovoltaic energy are no exception. With some of the sturdiest natural sunlight exposure and inexpensive solar photovoltaic costs in the country, it is no wonder that the Solar Energy Industry Association ranks Texas as the top 10 states for solar power capacity and generation. Thanks to some major solar incentives and rebates, using solar energy is easier than ever.
Homeowners in Texas cities can enjoy important rebate programs and special policies that can help them save thousands of dollars in the cost of installing solar systems on their roofs. These are just some of them.
Solar Rebates in Texas
There is no statewide solar tax credit or solar tax rebate program in the state of Texas, but many utilities (large and small) and local governments provide incentives for consumers who want to use solar energy. Here are some examples:
• Austin Energy:If you live in Austin, you can get a $2,500 rebate. It entitles you to Austin Energy’s solar tariff value, which is $0.097 per kilowatt hour (kWh) of what your solar photovoltaic panels can produce.
• CPS Energy:If you are a customer of CPS Energy, you can receive up to $1.20 per watt of solar panels installed on the roof. Like Austin Energy, the value of the reward decreases as you installed more solar power, so if you are in a CPS Energy service area, now is the time to use solar power.
Renewable Energy Systems Property Tax Exemption
Besides saving your electricity bills, solar energy has another economic benefit-it can increase the value of your house. Although higher home values usually result in higher property taxes, Texas enjoys a renewable energy property tax exemption, so residents of Lone Star State will not pay additional taxes because of the added value of their solar photovoltaic panels payment.
Net Metering in Texas
There is no statewide solar tax credit or solar tax rebate program in the state of Texas, but many utilities in the state (including El Paso Power, Brenham City, CPS Energy, and Green Mountain Energy) have established Policy, attribute the electricity generated by solar system owners to their panels. If your utility company has a net metering policy, all the extra electricity generated by your solar panels will earn points on your electricity bill. When the electricity generated by your panel is not enough to meet your usage needs (such as at night or when it is cloudy outside), you can use Texas net metering credits instead of purchasing electricity from a utility company.
Solar Rights Law
If you live in a community managed by a Home Owners Association (HOA) (also known as a Homeowners Association), you may be concerned that HOA regulations prevent you from using solar energy. Fortunately, Texas has a solar energy rights law that prevents HOA from banning solar systems on its properties, so you can use solar energy with confidence.
The Federal Solar Tax Credit in Texas
Don’t forget the federal solar incentives! With the help of Solar investment tax credits (ITC), you can reduce the cost of photovoltaic solar systems by 26%. Keep in mind that ITC is only available to people who purchase photovoltaic systems directly (through cash purchases or solar loans), and you must have enough income to receive a meaningful tax credit.