The massive winter storm that ravaged Texas this summer, in which over 2 million homes lost power for an extended period of time, was a wake-up call. It showed that traditional power systems just aren’t fully equipped to deal with the earth’s changing temperatures and climates. As such, alternative energy sources are being sought after by many Texans.
That’s where solar power comes in. But how can you leverage solar power in Texas? Are there solar incentives in Texas residents can take advantage of? That’s what we’re here to look at today. Read on to find out more about solar incentives in Texas.
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Federal Solar Incentives
The first place any homeowner should look at for incentives is the federal government. America is doing a surprising amount to offset the financial burden of installing solar through tax credits.
This credit, known as the Solar Investment Tax Credit, provides a dollar-for-dollar reduction on your income taxes. It’s currently set at 26% and is set to fall to 22% at the end of 2022.
That means 26% of the cost of your solar system installation will be taken out of your income taxes. If your panels cost $20,000 to install, for example, you get a tax break of about $5,200 ($20,000 x .26).
Solar Incentives in Texas Residents Can Enjoy
While the Solar Investment Tax Credit helps out solar enthusiasts throughout the nation, solar energy incentives in Texas also exist. These start with rebate programs offered by specific energy providers.
Austin Energy provides solar rebates of up to $2,500 while also making you eligible for their Solar Tariff. They pay you $0.097 for every kilowatt-hour that your panels generate.
CPS Energy customers can similarly receive $1.20 per Watt of energy that their solar panels produce. There are plenty of other energy providers offering rebates, so taking advantage of them now is certainly a good move.
Higher Home Values
One of the benefits of solar panels is that it improves the value of your home. The single detriment to that, however, is that your property taxes can increase as a result.
Texas thankfully offers a property tax exemption in the event of rising property taxes from solar panels. That means you won’t have to pay extra taxes just because you get a solar company to install your panels.
If you’re afraid that your homeowner’s association won’t let you install solar, don’t worry. Texas has a solar rights law that prevents anyone from banning the installation of solar on their properties.
Net metering is a common solar energy practice where energy providers pay solar users for any extra energy their panels produce. While Texas doesn’t have a statewide net metering policy yet, providers still offer this service.
CPS Energy, Green Mountain Energy, and El Paso Electric all offer net metering credits. This means you can leverage those credits whenever your panels aren’t producing as much energy as you need.
Leveraging Solar Incentives in Texas
Understanding your solar incentives and rights is crucial if you want an affordable path to solar energy. Use this guide to understand which solar incentives in Texas residents can enjoy. For more informative articles on home improvement and technology, check out the rest of our site!