Texas Solar Power Rebates, Tax Credits, and Incentives
From the Gulf Coast, through the panhandle and the hill country, all the way out to the Rio Grande, from Austin to San Antonio, Texas is home to a great variety of beautiful scenery and places. Promoting clean energy could help keep this unique place looking good for generations. What’s being done to keep that yellow rose blooming? Have a look!
STATE LEGISLATION
Since 1999 the state has done well promoting wind energy, but hasn’t made much progress on solar energy. The Texas legislature considered some important legislation on solar energy programs in 2007, but the bill suffered defeat as a byproduct of partisan politics. Because the legislature works on a 2-year schedule, this means that solar power won’t get considered in Texas again until 2009.
NET-METERING
Texas has pretty limited rules on net-metering due to deregulation of the energy market. Net metering and interconnection is mandated where the utility is investor owned (for renewable energy systems up to 50kW). These utilities must credit the user at full retail value up to the amount of energy consumed on-site. Users are then credited at the wholesale value for any net excess power generated. On the other hand, energy coops are not required to offer interconnection and net-metering. As a result, each coop gets to make up its own policy.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
Austin Energy is one power company that does offer a good rebate program for installing a solar photovoltaic system. For residential customers, the rebate is $4.50/watt installed (or $5.60/watt if you use a local Austin installer) up to 80% of the cost or $13,500 (whichever is less). For commercial customers, the cap is $100,000.
Check out these other Texas incentives and rebate programs:
Corporate Deduction
* Solar and Wind Energy Device Franchise Tax Deduction
Industry Recruitment/Support
* Solar and Wind Energy Business Franchise Tax Exemption
Leasing/Lease Purchase
* Big Country Electric Coop - PV Water Pump Sales & Lease Program
Property Tax Exemption
* Renewable Energy Systems Property Tax Exemption
Utility Rebate Program
* Austin Energy - Solar PV Rebate Program
* Austin Energy - Solar Water Heating Rebate
* CPS Energy - Residential Energy Efficiency Rebate Program
* CPS Energy - Solar Hot Water Rebate Program
* CPS Energy - Solar PV Rebate Program
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
Here’s an estimate for building a 3kW solar electricity system in Houston. Texas has a solar rating of good, making Houston a cost-effective place to install solar panels. A system like this would cost about $54,000. Although that’s a bit steep since the only rebate is the Federal one, you do get the added benefit of increasing your property value by more than $10,000, and that’s tax free. The system should pay for itself in about 25 years, but it will keep Texas green for generations to come by saving 160 tons of greenhouse gas emissions. Keep in mind that there are many power companies to choose from, and this sample uses Green Mountain Energy, a utility that provides 100% of its power from renewable sources. It turns out that according to our calculations, their electricity costs less than that provided by some of their competitors. However, even Green Mountain’s rates are estimated to rise to $0.087/kWh in 5 years and to $0.132/kWh in 25 years.
- 600 square feet of roof area required
- $24,002 estimated utility savings over 25 years
- 160 tons of greenhouse gasses kept out of the atmosphere; that’s like planting 890 trees or taking 53 cars off of the road
CONSENSUS
While Texas has done well with wind energy, now generating 2,700MW, the legislature has been pretty ineffective when it comes to solar energy. By deregulating the energy market, the legislature has left it up to individual power companies to come up with solar initiatives. With so much sun falling on the Lone Star State, legislators need to get on the ball and set some rules to encourage solar power generation at all those wayward power companies that have not yet started their own programs.
Click here to have multiple solar installers bid to upgrade your Texas home or business.
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