In terms of solar production, only California is a little ahead of Texas, making it a great place to start your solar journey. With a number of incentives available statewide, including net metering, rebate programs, federal rebates and tax exemptions, you can even benefit from the lower cost of solar panels here in Texas, when compared to the national average.
With in excess of 200 sun-filled days in Texas every year, you could soon be benefitting from everything solar power has to offer with an incentivized installation.
To help you decide whether switching to solar is the right decision for you, here are some incentives currently offered in the state, that could help you recoup your investment far quicker:
Federal solar tax credit
The state of Texas may not issue a solar tax credit, but as a resident of Texas, you’ll be eligible for a tax credit that’s non-refundable, when solar panels are installed on your roof. Known as the Investment Tax Credit, or ITC, it’s worth 30% of the total installation cost when filing your taxes.
Local solar rebates
Statewide tax rebates may not exist in Texas, but there are certain utility providers offering appealing incentives that might make you think twice about whether you can afford a solar panel installation:
- American Electric Power SMART Source Solar PV Program
If you become a member of this program, you can enjoy a significant rebate of up to $3,000; the exact figure will be calculated according to the size of your system.
- Austin Energy Solar Photovoltaic Rebates & Incentives
If you’re a customer of Austin Energy, you can earn yourself a rebate of $2,500 for having a solar panel installation at your home, but you must first take part in an educational course about solar energy in order to be eligible.
- Oncor Residential Solar Program
Oncor is the largest electrical utility provider in Texas, and they are offering a solar rebate for those customers installing a solar system that qualifies, and which includes a battery. To know whether you qualify and how much you might earn, check out Oncor’s website or reach out to one of their solar representatives.
- SMTX Solar PV Rebate
If you’re a San Marcos customer, you may be eligible for a rebate of up to $2,500, but you will need to get pre-approved.
- Solar Water Heater Rebates
For customers of Denton Municipal Electric or CPS Energy, you may be eligible for a solar water heater or solar screen rebate, should you have one installed.
Texas Property Tax Exemption
Set by local taxing units, Texas has some of the country’s highest property taxes, which are based on the property’s value. With this in mind, you might be concerned about your tax bill increasing along with the value of your home when you have a solar panel system installed, but you can get a bit of a break, in that solar panels are property tax exempt.
Net metering
While a net metering program doesn’t exist in Texas, local utility companies may well have their own programs that enable homeowners to earn payments or bill credits for any excess power generated by their solar panels.
Reach out to your utility provider to find out whether they offer a net metering program, and what its terms are. So, if you’re a Texas homeowner who wants to pay less for your electricity bills while doing your bit for the planet at the same time, switching to solar has plenty of benefits, and might even be more affordable than you think.