Yes, going solar makes sense in Texas. Texas doesn’t have statewide programs for solar energy. Incentives for going solar are offered by many of the state’s utility companies. Additionally, some local governments offer incentives to homeowners who choose to go solar. Texas has a statewide renewable energy property tax exemption, so going solar in Texas may not raise your property taxes. Another benefit of going solar in Texas is that net metering is generally offered by most Texas utilities.
How to choose your utility company in Texas
The federal tax credit for going solar is still available, but keep in mind that it begins to reduce at the end of 2022. The credit currently stands at 26% of the price you paid to install your solar system. But after 2022, the credit will be reduced to 22%. Consequently, homeowners who want the full 26% credit must have Permission to Operate (PTO) by December 30th, 2022. Because of possible delays in inspections and permitting of solar power, anyone who wants the full credit should plan to begin installing by September 30th, 2022, 90 days before the cutoff date.
Utility company incentives for solar power in Texas
The below list of solar incentives is based on information that is current as of May 2021. The terms, conditions, and benefits offered by Texas utility companies are subject to change at any time. Freedom Forever recommends you consult with one of our independent authorized dealers to confirm that your utility offers the incentives discussed in this article before you make the choice to go solar.
Austin Energy solar incentive
The city of Austin Texas operates its own municipal utility, Austin Energy. Residents of the city of Austin may be eligible for a $2,500 rebate. To qualify for the rebate, Austin residents must take a solar education course and have an approved solar installation company install their system and complete the rebate application.
American Electric Power Texas Central Company (AEP-TCC) solar incentive
AEP-TCC offers a rebate of up to $6,000 to residential customers. The rebate is a flat rate of $0.60 per watt for up to 10 kilowatts of system capacity. The rebate can be collected by customers or service providers. To collect the AEP-TCC rebate, a solar system must be purchased. If the solar system is leased, the rebate goes to the company that leased the system.
American Electric Power Texas North Company (AEP-TNC) solar incentive
AEP-TNC offers a rebate of up to $6,000 to residential customers. The rebate is a flat rate of $0.70 per watt for residential customers for up to 10 kilowatts of system capacity. The rebate can be collected by customers or service providers. To collect the AEP-TNC rebate, a solar system must be purchased. If the solar system is leased, the rebate goes to the company that leased the system.
City of Brenham Net Metering program
The city of Brenham Texas offers Net Metering to its residents. Net Metering is a system where utility companies pay solar customers for any energy they generate in excess of the energy they use.
City of Plano Texas, smart energy loan program
Homeowners in Plano, Texas may be eligible to finance their solar system and approved energy efficiency upgrades with the city. Loan amounts range from $2,500 to $25,000. To be eligible, the loan must be for an owner-occupied residential property.
City of San Marcos, Texas, distributed generation program
The city of San Marcos, Texas offers a rebate of up to $2,500 to residential customers. The rebate is a flat rate of $1.00 per watt for residential customers. The rebate cannot exceed 50% of the installed cost of the solar system. Eligibility for this rebate is contingent upon pre-approval of the solar installation by the city of San Marcos.
For more information and to apply for the San Marcos distributed generation rebate, click here
City of Sunset Valley, Texas PV rebate program
The city of Sunset Valley offers a rebate to homeowners who go solar that is in addition to the Austin Energy solar incentive discussed earlier in this article. The rebate is $1.00 per watt for up to system capacity of 3,000 watts. To qualify for the Sunset valley rebate, the solar system must first qualify for the Austin Energy rebate.
San Antonio Texas CPS Energy solar PV rebate program
San Antonio City Public Service (CPS) Energy currently (as of October 2019) rebates up to $2,500 for home solar. The company provides an additional $500 rebate if you install locally-produced panels. A solar system must have a capacity of at least 1 kilowatt AC to qualify. The homeowner must purchase their system to qualify. Leased systems aren’t eligible. This rebate is expected to be reduced as more homes go solar, so it pays to act soon.
CPS Energy net metering
Net metering is available to CPS Energy customers. At the end of each monthly billing period, CPS Energy pays the customer for net-excess power generation at the utilities’ avoided cost rate. The avoided rate is the cost the utility would normally pay for electricity if they bought it from a supplier other than a home solar owner.
Garland Texas solar rebate program
Garland Power and Light offers a utility bill credit for homeowners who go solar. The credit is $0.75 per watt of system capacity up to a capacity of 4 kilowatts. If you are interested in this credit you should contact Garland Power and Light directly at energyadvisor@gpltexas.org call 972 205-2929 or visit the company’s website www.gpltexas.org for details.
Green Mountain Energy renewable rewards program
This program is similar to Net Metering and has similar benefits up to a point. Green Mountain customers will receive a 1 to 1 credit for all the surplus energy their system generates. A 1 to 1 credit means a solar system owner may pay the same rate for the energy they sell to Green Mountain that they charge a customer when that customer buys power from them. This program is available to Texans with a home system of 25 kilowatts capacity or less.
Guadalupe Valley Electric Cooperative renewable energy rebates
The Guadalupe Valley Electric Cooperative (GVEC) offers an incentive of $0.75 per watt for solar systems. Energy purchased from the homeowner by GVEC is paid at a rate that is set by GVEC (in other words, not a net metering plan). The maximum amount of the rebate is not given by GVEC.
Oncor Electric Delivery solar rebate
Oncor Electric offers a rebate of up to $5,400 for going solar. The rebate pays $0.54 per watt DC based on your solar system’s capacity. Thus, a solar system of 10 kilowatts or greater in capacity would be eligible for the full rebate if that system met the qualifications of the rebate program.
Freedom Forever can help you navigate Texas’ unregulated energy market
Thanks to the deregulated nature of Texas’ energy market, there are a lot of solar incentive programs offered by utilities in Texas. Freedom Forever’s family of independent authorized dealers are experts on the available rebates and existing rules governing solar power in your area. Your Freedom Forever independent authorized dealer will help you get the most benefit from going solar in Texas.
Freedom Forever is currently serving homeowners in the Houston and Dallas areas.