One of the top questions people ask about solar panels in Texas is how much they cost.
Solar panel systems are customized to fit your home, roof and energy consumption. If you are purchasing a system in Texas, there are several rebates and incentives to be aware of that can knock off a big chunk of the cost.
A major factor in considering the cost of a solar panel system in Texas is the electricity consumption offset by the panels. So, the money you were paying every month to your electricity provider is being redirected back into your solar panels.
Incentives and rebates can change, so be sure to check on current totals, amounts and programs with your city, the state of Texas and federal programs. Here are some you should know about.
Solar Panel Federal Tax Credit
This is probably the biggest and most widely-known solar panel incentive. It is not unique to Texas since it is a federal tax credit. It is also known as the investment tax credit (ITC).
Basically, it allows you to deduct 30 percent of the cost of installing a solar panel system from your federal taxes. Of course, if the total of the credit exceeds what you own in taxes that year, you will get the difference.
When purchasing a solar system, most people apply this tax credit to the purchase of their system.
Solar Panel Rebates in Texas Regulated Cities
In areas of Texas where electricity service is run by the city (municipality), such as Austin, San Antonio and Garland, several incentives have been offered. However, many of them have been on a first-come, first-served basis.
The amount of the rebate is based on the capacity, in watts, (size) of the proposed solar PV system, and is calculated by multiplying the capacity by the current incentive level.
Austin Energy was paying 40 cents to $1 per watt (the size of solar systems is measured in watts).
Garland Power and Light was offering a $2,000 credit to your utility account for citizens who install a qualified system. This credit can be used to draw from for any electricity not offset by the solar system.
In San Antonio, CPS Energy customers can get a rebate of 60 cents per watt.
El Paso Electric is one of the few areas that offer net metering to its customers, giving them a 1 for 1 credit for your power exported to the grid.
Solar Panel Incentives in Deregulated Texas Areas
Oncor services most of the deregulated area of North Texas and some of West Texas. Oncor was offering a rebate of $538.53 for each kW of solar.
On top of that, customers could take advantage of a Feed in Tariff (FiT) of 25 cents per kWh. That’s almost three times the typical electricity kWh rate in Texas.
Again, these solar rebates, credits and incentives in Texas and on the federal level are subject to change.
If you’d like more info about going solar in Texas, or even get a free and detailed proposal for your home, just enter your name and email below or call 469.207.1595.