We’ve all heard that “Everything’s Bigger in Texas,” but who would’ve thought that saying included power outages. It’s true. Overwhelming weather conditions and an overwhelmed power grid kept Texas in the dark this year with rolling blackouts. Many folks are seeking renewable energy options to protect themselves against blackouts and solar has swooped in to save the day.
The Lone Star State is looking for ways to push back on their energy infrastructure, and they aren’t the only ones. Solar energy is trailblazing all over the country! Every day, cities are committing to 100% renewable energy goals. As a result, there are a bunch of financial incentives and rebates that make going solar a great decision for your budget. Wondering if solar panels are worth it in Texas? In fact, Texas is one of the best places to go solar.
As one of the largest energy producers and energy consumers in the U.S., Texas is the optimal state to take advantage of natural resources. According to a report distributed by SEIA, the average Texan household consumes about 14,000 kWh of energy a year.
The news is out: one of the best ways to reduce your carbon footprint is through clean, renewable energy. There are a host of environmental benefits that solar brings to the table, but it also adds more bang to your budget.
If you’re fixin’ to go solar, there’s a bunch of solar incentives and rebates that sweeten the deal. Don’t miss out on the many Texas solar incentives and rebates available. Let’s take a look at the super savings Texans can lasso when they go solar.
Don’t Mess with Texas Solar Incentives, Tax Credits, & Rebates
Solar panels are one of the greatest smart home investments that a homeowner can make. But it always comes down to cost. How much do solar panels cost? The answer to that question lies in the unique energy profile of your home. Most Texans pay almost 20% over the national average in monthly electricity expenses. That’s about $128.
While Texas electricity rates are still about 8% less than the U.S. average at 10.98¢/kWh, Texas is a gas guzzling state, where they produce the highest amount of carbon dioxide gas in the U.S. Solar just might come in to save the day and, believe it or not, making the switch could save about $2000 on your electricity bill. And Texas solar savings don’t stop there!
Let’s take a look at a few solar incentives and solar rebates that dirty energy just can’t mess with.
Federal Solar Tax Credit
One awesome benefit to going solar is a tax credit at a federal level. The Solar Investment Tax Credit (ITC) is a huge incentive offered by the federal government. Currently, this tax credit allows you to deduct up to 26% of the cost you spent on installing your solar power system from your taxes. And there’s still great news to come! If the ITC provisions are passed in the new Bipartisan Infrastructure Bill, there will be a return to the 30% tax credit for another 5 years.
Property Tax Exemptions and Solar Rights Laws in Texas
Do solar panels increase home value? They definitely can! Texas homes could be sold at an additional $10,000 or more when solar panels are installed. Additionally, Texas has solar rights laws that prevent a homeowner’s association from banning solar system installation on a home.
Residents have access to the renewable energy property tax exemption, which doesn’t raise property taxes when solar panels inevitably increase the value of your home.
Net Metering in Texas
From Odessa to Houston, and all around the state of Texas, homeowners have access to a number of solar incentives and programs that can help lessen the cost of installing solar panel systems by thousands of dollars. But that’s only the icing on the cake. While there is no statewide policy on net metering at the moment, some local utility companies do offer net metering.
What is Net Metering?
What is net metering, you ask? Net metering is an arrangement between you and your electricity company. It allows you to receive credit towards your utility bill when your solar energy system produces more power than your home consumes. It’s one of the great factors of solar energy, there’s so much energy to go around!
Take a look at a few electricity companies that offer outstanding net metering programs:
- Greenville Electric Utility System
- Navasota Valley Electric Cooperative
- Pedernales Electric Cooperative
Solar Buyback Programs in Texas
Solar buyback programs are another way to describe the net metering opportunities that utility companies have available. Texas has one of the biggest, deregulated electricity markets in the U.S. This means Retail Electric Providers (REP) have steep competition to supply your energy needs and offer solar buyback programs to entice you to send them your business. Look into the programs offered by Reliant or TXU Energy. There are so many REPs in the state of Texas and each might offer a different program.
Often, Solar buyback programs mean a dollar-for-dollar solar buyback in return for credits. If going solar is a dream of yours, there are also local solar rebates available.
Does Texas have a solar rebate?
Yes, while solar rebates for a solar system in Texas might differ from other states, it’s common for utility companies to offer them on a price-per-watt basis, subject to a maximum cap. Essentially, these rebates can be used to go solar, boost your solar system with a solar panel battery backup, or do other upgrades that will get your home in the greenest shape of its life.
Contact your local Solar Energy Specialist to find out more!Free Solar Quote
Texas Solar Rebates for Solar Panels
As it stands, there are enough Texas solar rebates and incentives to go around! Lucky for you, we’ve compiled a list of the heavy hitters. Although the best option is to contact a Sunpro Solar Energy Specialist, there’s still tons of information out there for your preliminary research!
Here are some key programs that will boost your savings when you go solar:
American Electric Power
American Electric Power, or AEP, a company that provides utilities for many cities in Texas, most notably Corpus Christi, San Angelo, and tons of others. Those ready to take advantage of a key Texas residential solar rebate can delight that AEP has restructured its incentives program.
Currently, these are the rebates for residential home Solar calculated based on kilowatt (kW):
- $1,500 for systems below 5 kW but more than 3kW.
- $2,250 for systems that are below 7.5 kW but at least 5 kW.
- $3,000 for systems that are 7.5 kW or greater.
As the first city-specific solar rebate on the list, Austin Energy brings on the Texas solar savings for its Austin residents. This solar rebate helps homeowners in the Austin area who want to make the switch to solar.
As of now, Austin Energy offers a rebate of $2,500 in addition to their net metering program. Through net metering, customers can receive a solar credit at a rate of 9.7 cents per kilowatt-hour (kWh) of electricity produced by their solar PV system. Community solar is also available through Austin Energy with the “Green Choice Plan.” For Austin residents who don’t own their home, generating clean energy through solar is made easier.
Coleman County Electric Cooperative
The Coleman County Electric Cooperative (CCEC) is a co-op operating in West Central Texas. They’re committed to delivering reliable energy, so it makes sense that solar homeowners will see the fruit of their clean energy efforts.
While it does not offer specific solar rebate, it does offer a solar buyback initiative for solar systems up to 10 kW. For systems with the capacity to produce more than 10 kW of electricity, CCEC offers a bill credit at the retail rate for solar energy.
CoServ Electric is a utility provider that primarily serves North Texas. The company offers solar rebates for residential and commercial solar systems until funds are depleted.
Here are the tiers that structure the program:
- $0.40 per watt for the first 4kW DC
- $0.30 per watt between 4kW and 7kW
- $0.20 per watt between 7kW and 10kW.
The home solar rebate is applied for up to $3,100 per system. This is an added bonus to CoServ’s net metering program, which credits systems up to 50kW.
CPS Energy serves the San Antonio area and aims to increase solar panel installation for low income consumers. Although funds are limited, there is a funding pool ready to allocate $1500 per residential solar panel installation.
Find out today if you qualify for this useful program and get your home producing clean energy in excess today!
Denton Municipal Electric
Denton Municipal is a solar rockstar with free energy audits, energy efficiency rebates, and even better, solar incentives. Check out their latest solar rebate here.
Denton’s Solar Installation Incentive is structured to vary between $0.40 and $0.80 per watt, depending on the system size. Your potential rebate can be up to $30,000, as long as it does not exceed 50% of the total installation cost. With a solar panel battery backup added to the mix, your rebate could increase to between $0.60 and $1.20 per watt.
For the homeowners interested in reliable power that keep your home alit after a power outage, this is a great incentive.
Farmers Electric Cooperative
Farmers Electric Cooperative powers many of the homes in North Texas, nearly exceeding 50,000! If you have a renewable energy distributed generation system (like solar panels) up to 50 kW in size, Farmers Electric will provide a $500 rebate.
Check into some of the other available while you’re at it! These could be anything from insulation to geothermal heat pumps.
Garland Power and Light
Garland Power and Light (GP&L) offers a helpful solar rebate of $0.75 per watt.
With a maximum savings of up to $5,000 per system, this rebate is renewed every October and remains available until that year’s funds deplete.
Guadalupe Valley Electric Cooperative
Guadalupe Valley Electric Cooperative (GVEC) has a post installation solar incentive that will knock your socks off.
The rebate offers $0.75 per watt up to $3,000, along with other home energy efficiency credits.
Heart of Texas Electric Cooperative
The Heart of Texas Electric Co-op provides many rebates for green home upgrades that are bound to reduce your carbon footprint. Obviously, that includes the homes that get their energy from the sun.
The solar rebate is $0.10 per watt on the solar installation with a cap set at $500 per member.
Hilco Electric Cooperative
Hilco Electric Cooperative, or HILCO, offers a great solar installation rebate. The incentive entices their customers to install solar for $200 per kW.
Residents of areas served by HILCO are eligible to receive up to $1000 for this installation.
Although Mid-South is based in Navasota, this rebate is available to all eligible customers of the cooperative.
Along with many of its energy efficiency upgrades and greener home improvements, Mid-South offers a solar rebate on 20% of solar installation up to $2,000.
New Braunfels Utility
New Braunfels Utility, or NBU, provides all kinds of rebates for customers who want to reduce their energy consumption and generate cleaner energy. These financial discounts include energy efficiency, water conservation, and of course, solar rebates.
Customers can receive up to $3000 as a bill credit through this solar rebate.
Oncor Electric Delivery
Oncor Electric Delivery serves a large portion of the Dallas-Fort Worth area, as well as some part of Austin, North Texas, and West Texas. The rebate depends on the installation and is determined by Oncor’s calculator. An installation could be eligible for a rebate as high as $5,000 for a 7.2-kilowatt. Renewed annually, this solar rebate typically run out within the first few months of the new year. In addition to this, ONCOR also offers several rebates for community solar projects and home energy efficiency projects.
Making Solar Affordable, One Rebate at a Time
In a year, Texas has about 235 sunny days. I know what you’re thinking: that’s 235 opportunities to generate clean solar energy for your home. And guess what? Solar panels still work on cloudy days, even in light rain, but especially when you need your power the most. That’s a full year of solar generating energy in excess for your home. It’s time to live abundantly and go solar!
Fortunately, there are so many Texas incentives and rebates that shave off the initial cost of solar. If you want to save a bundle with your solar panels, contact Sunpro today!Free Solar Quote