One of the most effective ways to get people to switch to solar power in Texas is through financial incentives. Using solar energy can help you save money, reduce your carbon footprint, and become less reliant on the utility company. However, many people put off installing solar panels due to the misconception that they are prohibitively expensive. Saving money and getting the solar panels that work best for you is possible thanks to solar incentives in Texas.
SmartSolar can help you get started with solar incentives and learn more about them. They will be able to provide you with a ballpark figure for the cost of solar panel installations and offer suggestions for saving money.
Take the SmartSolar Quiz to find the solar panel solution that’s right for your home.
Is It Worth Investing in Solar Panels in Texas?
Texas is one of the best locations for purchasing solar panels because of the significant amount of sunlight present most days of the year. Solar panels only work in sunlight. That means that solar panels do not work at night to produce energy. With the help of a solar battery, you can eliminate your need for traditional electricity. There are some great benefits of switching to solar:
- Stop relying on the utility company to power your home. You don't have to worry about electricity outages any longer.
- Eliminate or reduce your electricity bills. You can stop paying for electricity (or paying as much) when you make this switch. That's because your solar panels will produce energy to power your home.
- Improve the environment. Solar panels do not use fossil fuels, and that means they help to reduce your home's carbon footprint.
- They are a reliable form of energy. You can count on having enough energy in Texas to power your home.
- Add value to your home. When it comes time to sell your home, you may get more for it because solar panels can add value to your property.
How to Save Money on Solar Energy Installation
Numerous Texas solar incentives could help you reduce your costs and have a solar system installed on your home for much less than the average cost. Property owners must determine what solar panel systems are best for their needs. You also have to be able to learn what incentives are available in your area and the overall costs associated with the panel you need.
Here are some of the best solar incentives in Texas that could help you save money.
1. Inflation Reduction Act
The Inflation Reduction Act is one of the best and most significant ways to reduce the cost of solar panels for your home. This is a federal tax incentive, meaning you can apply this tax credit to your federal income tax return. Here is how it works.
This federal tax credit allows you to claim up to 30% of the total cost of your solar panel system on your federal income tax return. That includes the cost of the equipment, storage, and any other related features. There is no dollar limit on how much this can be.
The tax credit works to apply a direct reduction in any federal income tax you owe for the year. You can only use the tax credit if you pay federal income tax. However, most people do. This is one of the best ways to lower the overall cost of solar panels for your needs. The amount you can deduct depends on the year you have them installed, with some years having a reduced level. That's why installing solar panels now could help you save the most money.
2. TXU Energy Home Solar Buyback Plan
Another opportunity you may qualify for is the TXU Energy Home Solar Buyback Plan. If you currently have TXU Energy, you may be eligible for this program.
It aims to reward people who have invested in a solar panel system. That system may generate the power you need for your home, but it may also create more than you need. Through this plan, you can send that excess power to TXU Energy. You will receive a 100% credit on your monthly energy charges. That means that you can lower your energy bills even further. If you still have energy charges after switching to solar, this plan allows you to reduce those costs entirely based on the amount of excess solar you sell to the energy company.
3. Solar Energy System Property Tax Exemption
Another type of solar incentive comes from an exemption on state property tax. Investment in a solar panel system will often add value to your home. Because your home is more valuable, that should cause your home's taxes to go up. However, with the Solar Energy System Property Tax Exemption from the State of Texas, that does not happen.
With this plan in place, you will not have to pay more if your home's value improves due to the investment in a solar panel system (it also applies to wind-powered energy investments). This provides a total 100% exemption. Remember that it only exempts you from the added value solar panels add to your home – not all of your property tax. You can learn more about what qualifies at the Texas Land Conservation Network.
4. Texas Solar Switch Houston
Another benefit available to those living in Houston is the Texas Solar Switch program. This program is in its infancy, and numerous steps are still involved in implementing it. However, it allows Houston residents to register with the city for free information about purchasing solar panels.
The city plans to negotiate a group rate discount for residents in the state who decide to invest in solar panels. This discount could help residents to save more money on the cost of solar panels.
What Are the Benefits of Investing in Solar Panels in Texas?
You may be on the fence about whether or not to invest in solar energy credits and incentives in Texas. Solar panel installations have many positive outcomes.
Reduce your electric bill
By switching to solar power, which uses energy from the sun rather than the utility company, you can avoid paying the exorbitant rates usually associated with electricity. That means you won't have to worry about your electricity bill. You can significantly reduce the cost of your utility bills by staying connected to the grid as a backup. In many cases, the cost of installing solar panels is offset by the savings made in the long run.
Independence from energy companies
Your solar panel system will keep functioning even if the utility company loses power. Traditional electricity is no longer necessary for you in many respects. So, even if the price of electricity increases over time, you can still meet your needs with alternative sources.
It's cleaner
It's worth noting that solar power is a more environmentally friendly energy source. Most people will do their part to reduce the carbon emissions their home produces by switching to solar, though there are some drawbacks if it needs to be recycled correctly. Switching to solar energy also helps lessen reliance on nonrenewable fuel sources.
Take the SmartSolar Quiz to find the solar panel solution that’s right for your home.
Meet the author:
Joey Cheek spent 10 years on the US National Speedskating Team where he competed in two Olympic Games, winning gold, silver, and bronze medals. He attended Princeton before diving into the startup and tech world. In 2011 he launched a livestreaming platform for sports before leading a team of engineers building next-gen news and content apps for Fortune 100 companies. He is the CEO and co-founder of SmartSolar.org, whose mission is to move the earth to cheap, abundant, carbon-free energy.
