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Semper Solaris Texas | Guide for going solar in Texas - Semper Solaris Texas


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Guide for going solar in Texas

What are Texas Solar Tax Incentives?

  • Texas has a diverse array of tax incentives and credits to make solar power installations more accessible for residential and commercial users
  • Residential and commercial solar installations benefit from different financial incentives
  • A variety of incentives, ranging from tax credits to rebates and bill credits from your electric provider, can help make the economics of solar even better
  • Keep a close eye on updates from your local utility company for additional benefits
  • Keep in mind that the details of these programs may evolve over time and can vary based on the size and type of installations

Residential Solar Incentives in Texas

Homeowners in Texas have many great financial incentives at their disposal to install solar power systems. Some of these incentives include:

  • Federal Solar Investment Tax Credit (ITC): This federal tax credit offers 30% of the system costs. For instance, for a 10 kilowatt (kW) system costing $33,000, your tax credit would be $9,900
  • Renewable Energy Systems Property Tax Exemption: 100% of your property tax value, including the assessed value of your solar power system, is exempt from taxation in Texas
  • Local Incentives: Various cities and utilities across Texas offer incentives, such as the Oncor Residential Solar Program, CenterPoint Energy Residential Solar Program, and AEP Texas SMART Source Solar PV Program

Non-Residential Renewable Energy Incentives in Texas

For non-residential installations, Texas provides a number of tax incentives and credits to encourage the adoption of renewable energy. Business incentives include:

  • Federal Solar Investment Tax Credit (ITC): Businesses can get a 30% tax credit on the cost of their solar system
  • Renewable Energy Systems Property Tax Exemption: This exemption applies to the increased value of the property from installing renewable energy systems
  • Local Incentives: Some local utilities offer specific incentives for non-residential users, so be sure to check with your local utility company

Federal Solar Investment Tax Credit (ITC)

  • Residential and commercial solar panels installed by December 31, 2032, are eligible for a 30% tax credit
  • If the credit exceeds your owed taxes, the ITC rolls over up to five years
  • The average 10kW system could yield around $9,900 in tax credits

Eligible Technologies for Solar Incentives

Eligible technologies for solar incentives in Texas include:

  • Photovoltaics
  • Solar water heat
  • Passive solar space heat
  • Solar space heat
  • Wind
  • Solar ovens
  • Solar cooling
  • Solar pool heating
  • Daylighting

Federal Solar Investment Tax Credit (ITC) for Texas

  • The ITC allows a tax credit equivalent to 30% of your solar system cost
  • The credit is claimable the year you install your system
  • Unused credits can roll over for up to five years
  • Combine ITC with state and local incentives for maximum savings

Texas State Solar Incentives

  • “Solar is growing up,” says Steve Wiese, director of implementation services at Frontier Energy, Inc., “and the industry here in Texas is maturing”
  • Texas does not offer statewide solar rebate but does have a property tax exemption
  • The Renewable Energy Systems Property Tax Exemption values 100% of your property tax, including the assessed value of your solar power system
  • You pay no taxes for any increase in your home’s property value due to your solar system installation

Local Solar Panel Incentives in Texas

  • Incentives vary depending on location and utility company
  • Oncor Residential Solar Program: offers up to $9,000 per solar PV system
  • CenterPoint Energy Residential Solar Program: $225 per kW or $0.08 per kilowatt-hour
  • AEP Texas SMART Source Solar PV Program: up to $3,000 per solar PV system
  • Austin Energy Solar PV Rebate and Incentives: Up to $2,500 per solar PV system

Texas Net Metering

  • Texas has no statewide net metering policy but many retail electric providers offer solar buyback plans
  • You receive credits for any excess energy your solar panels produce and send back to the grid
  • Use those credits towards future energy bills
  • Net metering programs in Texas are managed by different electric companies, thus technical requirements and compensation rates vary

Estimated Solar Savings in Texas

  • Typical 6 kW home solar system generates over 9,500 kWh of energy per year
  • Residential customers in Texas pay an average electric tariff of 14.26 cents per kWh
  • 9,500 kWh of solar generation could save you over $1,350 in electric bills each year
  • Typical 6 kW solar panel installation costs around $17,700
  • Claim the 30% solar federal tax credit to decrease project cost to $13,290
  • Additional incentives can drop your cost even more

Advantages of Going Solar in Texas

Investing in solar power in Texas comes with a multitude of advantages:

  • Reduction in carbon footprint
  • Increased use of renewable energy
  • Lower average monthly electricity bills
  • Increase in property value
  • Creation of new jobs and industries
  • Decreased reliance on non-renewable resources
  • Decreased dependence on foreign energy sources
  • Allows storage of excess energy for future use
  • Stabilizes energy prices

Potential Increase in Property Value and Tax Exemptions

  • Solar-equipped homes increase in value
  • An increase in property value by approximately $20,000 is expected for every 5 kilowatts (kW) of solar installed
  • Solar installations can enhance the marketability of a home
  • Solar panels are eligible for a property tax exemption in Texas

Solar Power vs. Traditional Electricity Sources in Texas

  • Solar power is a renewable and clean source of energy unlike traditional electricity sources like fossil fuels
  • Solar power reduces greenhouse gas emissions and reliance on non-renewable energy sources
  • Solar energy saves money and contributes to the fight against climate change

Invest in solar energy in Texas and start saving money on energy today! Get in touch with your local solar provider at Semper Solaris for personalized advice and navigate Texas’ solar incentives with ease. Enjoy the benefits of going green while saving money with solar power.