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Texas on track to record solar power capacity by end of 2022


May 11, 2021 | 3min read

According to a report by the U.S. Energy Information Administration (EIA) Texas is on track to add record solar capacity in the next two years, likely surpassing California. Texas already has the most wind energy capacity in the nation, so it only makes sense that it prioritizes solar energy as well. There are many factors that contribute to renewable energy growth in the Lone Star State, but two key drivers are attractive incentives and possibly lower solar technology costs. 

California has the most installed-scale solar capacity in the United States and is known for its environmentally friendly initiatives and green habits. So how is Texas on track to surpassing the Golden State?

Texas solar compared to California solar

As mentioned above, Texas is the nation’s leader in wind energy. Unitil now, California has been the nation’s leader in  solar energy with about 16 gigawatts of solar capacity. To put that into perspective, one gigawatt is enough to power about 330,000 homes. This approximation considers the amount of time solar power is actually on. The EIA has projected that Texas will be adding 10 additional gigawatts of solar capacity by 2022. California will only be adding an additional 3.2 gigawatts. The solar industry is expected to see the biggest growth between 2020 and 2022, according to EIA projections. 

Texas solar energy incentives

What prompted this exponential growth in solar energy? According to the study by the EIA, incentives and lower solar costs are the main culprits. Solar PV is now the cheapest electricity in history so it makes sense more homeowners and businesses are installing solar systems. The federal solar investment tax credit (ITC) is a major solar incentive available to Texans. The ITC offers a 26% tax credit to eligible homeowners. The incentive will drop to 22% beginning 2023, so it could be beneficial for homeowners to install a solar system while the incentive remains at 26%.* 

There are also incentives at the utility  level. Thanks to the deregulated nature of Texas’ energy market, there can be various incentive programs offered by utilities in Texas.For example, Austin Energy and the City of San Antonio offer a $2,500** residential rebate to eligible customers. These incentives are helping states transition from fossil fuels to greener renewable energy sources. 

Is solar worth it in Texas?

There are many reasons to go solar in Texas from lucrative incentives to saving the environment. Texas gets more than enough sunlight for a solar system to make sense. West Texas’s Permian Basin gets plenty of sunshine and it is the planned location of 30% of the state’s solar capacity in 2022. 

Freedom Forever’s family of independent authorized dealers are experts on Texas home solar. Your Freedom Forever independent authorized dealer can help you get the most benefit from going solar in Texas. They say everything’s bigger in Texas and Texans are proving it by going big on solar!

*We advise you to consult with the appropriate professionals (including, but not limited to, your solicitor or attorney, accountant, CPA, CGA, or any other financial or legal advisor) for the implications of any information contained in our website and in any link you access through our website.

**This figure is current as of May 7, 2021. Customers are encouraged to check with their utility provider for the most up to date information. 

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