They say that everything is bigger in Texas, and the benefits of solar are no exception. With some of the strongest sunshine in the country and lower-than-average solar costs, it’s no wonder that the Solar Energy Industries Association ranks Texas as a top 10 state for solar. Going solar is easier than ever thanks to some major solar incentives and rebates.
What are the best Texas solar tax credits and rebates?
Homeowners in cities across Texas have access to significant rebate programs and special policies that can help them save thousands on the cost of installing a solar energy system on their roofs. These are just a few of them:
Texas solar rebate programs
While Texas doesn’t have a statewide solar tax credit or solar rebate program, many utilities (large and small) and local governments offer incentives to homeowners who want to go solar. Here are some examples:
- Austin Energy: If you live in Austin, you can get a rebate of $2,500. Plus, you’re eligible for Austin Energy’s Value of Solar Tariff, which pays you $0.097 for every kilowatt-hour (kWh) your solar panels can generate.
- CPS Energy: If you’re a CPS Energy customer, you can receive up to $1.20/W of solar panels that you install on your roof. Like Austin Energy, the value of the incentive drops as more solar is installed, so now’s the time to go solar if you are in the CPS Energy service area.
- Oncor: Homes that have their electricity delivered by Oncor are eligible for a cash rebate of $538.83/kilowatt (approximately $0.54/W) for their solar panel system installation. In addition, while Oncor customers are not eligible for net metering, they do receive a credit of $0.2519/kWh of solar electricity generated.
- Guadalupe Valley Electric Cooperative, Garland Power and Light, and the City of Sunset Valley all also offer rebates for homeowners in their areas.
Renewable energy systems property tax exemption
Beyond saving you money on your electricity bills, solar has another financial benefit – it can increase the value of your home. While higher home values typically bring higher property taxes, Texas has a renewable energy property tax exemption so that residents of the Lone Star State don’t pay extra taxes as a result of the value that their solar panels add.
Texas renewable energy: solar offers top incentives for homeowners
Texas net metering
Although Texas doesn’t have a statewide net metering policy, many utilities in the state (including El Paso Electric, the City of Brenham, CPS Energy, and Green Mountain Energy) have policies that credit owners of solar energy systems for the electricity that their panels produce. If your utility has a net metering policy, you receive credits on your electric bill for all of the extra electricity your solar panels produce. When your panels aren’t producing enough electricity to meet your use (like at night or if it’s cloudy outside), you can draw on those Texas net metering credits instead of buying electricity from the utility.
Solar rights law
If you live in a neighborhood governed by a homeowners’ association (HOA), also known as a property owners’ association, you might be worried that HOA regulations will keep you from being able to go solar. Luckily, Texas has a solar rights law that prevents HOAs from banning solar energy systems on their properties, so you can go solar with confidence.
Federal Investment Tax Credit (ITC) for solar
When you’re considering going solar, don’t forget about the federal tax credit for solar – it’s one of the best incentives in the country. You can reduce the amount you pay in taxes by 26 percent of the cost of your solar panel system. That means that if your system costs $10,000, you get a $2,600 credit on your federal taxes.