When considering solar panel installation, you’ll find a few different options available to residents in Texas. These options vary in their design, effectiveness, and cost. We will work with you to find the best options for your home.
Solar Panel Installation in Texas
Many Texas homeowners wonder if installing solar panels on their roofs is a good investment. If you’re hesitant, exploring the benefits of solar may help you make a smart decision.
Long sunny days, relatively low installation costs, and robust financial incentives are the most compelling reasons to go with residential solar panels in Texas. So it’s not surprising that the state ranks second nationwide on total solar capacity deployed in 2021 with 148,936 new installations.
Start reaping the benefits from one of the most financially rewarding renewable energy sources by going solar today.
Do Solar Panels Increase Property Taxes in Texas?
No, they don’t. A primary concern of homeowners when installing solar panels in Texas is its impact on annual property taxes. Start reaping the benefits from one of the most financially rewarding renewable energy sources by going solar today.
Texas has no state mandate regarding property taxes, leaving it to local governments to decide the rates to fund public services and facilities. However, since home improvements can raise the property’s value, property taxes typically increase accordingly.
Fortunately, homeowners who switch to renewables as an energy source don’t have to worry about additional property taxes because of the state’s exemption. Once approved, the property owner doesn’t have to apply for the tax break annually.
Does Texas Buy Back Electricity from Solar Panels?
Texan property owners often ask whether you can sell solar power back to the grid in Texas. Yes, you can; however, the entity buying back the energy varies.
Texas didn’t implement a statewide policy on net metering. But that doesn’t mean there are no electricity buy-back programs in place; rather, utility providers can offer to purchase excess power generated from solar panels in Texas.
CPS Energy, El Paso Electric Company, Green Mountain Energy, and the City of Brenham’s Electric Department will give monthly credits based on the avoided cost rate and extra electricity sent to the power grid to augment the supply.
You can use these net metering credits to offset power drawn from the grid when your solar production cannot meet consumption at night or during cloudy days.
Is It Worth Going Solar in Texas?
Yes, it is worth investing in solar panels in Texas for many good reasons.
The financial rewards are big in the state. In addition to the property tax exemption and net metering programs, going solar qualifies Texan property owners for rebates from local utility companies.
- Austin Energy customers can receive $2,500 in rebates.
- CPS Energy customers can get $2,500 in rebates and an extra $500 for installing locally sourced panels.
- The City of Sunset Valley also offer incentives, but residents should first apply for a rebate through Austin Energy.
The Federal Tax Credit
Reduce the total upfront cost of your solar array by 26% with the investment tax credit. Aside from state and local financial incentives, Texans shifting to solar qualify for the federal tax credit. It allows you to deduct 26% of your total spending on installing solar panels from your federal taxes.
If the total installation cost is $10,000, you can claim $2,600 in tax credits and use it to offset a portion or all of your current federal tax liabilities. The 26% rate is valid only for solar energy systems installed by the end of 2022.
In 2023, homeowners can only deduct 22% of installation costs from their federal taxes. To date, there is no reported extension of the tax incentive.
There is no cap on the maximum value of tax credits, but the only ones eligible are those who own the solar array, either by purchasing it outright or through a loan. Signing a lease or PPA won’t qualify you for the incentive.
Solar Costs in Texas
After knowing the monetary benefits of shifting to renewable energy in the Lone Star State, you’re probably wondering how much solar panels cost in Texas. The answer, however, varies.
To estimate the total cost, you must determine first how many solar panels are needed to power your house in Texas. An average home will need 20 to 24 panels to meet its power requirements; however, the actual number installed can be higher or lower depending on location, solar panel efficiency, and consumption pattern.
Your solar provider will recommend the right system size based on these factors. If you want solar to be worth the investment, make sure your system fits your needs.