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Texan homeowners have access to substantial incentive and rebate programs and special regulations that could potentially save them thousands on solar system installations. Here’s an overview.
Texas Solar Rebate Initiatives
Although Texas lacks a statewide solar tax credit or rebate program, numerous utilities, both large and small, and local governments extend incentives to homeowners interested in solar energy adoption. Some examples include:
Austin Energy
Residents of Austin can benefit from a $2,500 rebate and eligibility for Austin Energy’s Value of Solar Tariff, which reimburses $0.097 for each kilowatt-hour (kWh) produced by solar panels.
CPS Energy
Customers of CPS Energy can receive $2,500 upon installing solar panels on their homes, with an additional $500 available for using locally-sourced panels.
Other entities like the Guadalupe Valley Electric Cooperative and the City of Sunset Valley also provide rebates within their respective regions.
American Electric Power SMART Source Solar PV Program
AEP customers can receive a substantial rebate based on the size of their solar system, with amounts up to $3,000.
Oncor Electric Delivery – Residential Solar Program
Oncor Electric Delivery offers rebates to its residential customers who install photovoltaic (PV) systems on homes within its service area. Oncor residential customers are eligible to participate in the program, and rebates can be assigned to the customer, a service provider, or a third party.
Property Tax Exemption for Renewable Energy Systems
In addition to reducing electricity expenses, solar installations can boost home values. Despite increased property values typically resulting in higher taxes, Texas offers a renewable energy property tax exemption, shielding residents from additional taxes due to the added value of solar panels.
CenterPoint Energy – Residential and Hard-to-Reach Energy Efficiency Program
CenterPoint Energy’s (CNP) Residential and Hard-to-Reach Standard Offer Program (RSOP & HTR) offers incentives to encourage contractors, service companies, community agencies, and other organizations to install energy efficiency measures in homes and small businesses within CNP’s designated service area.
Texas Net Metering
While Texas lacks a statewide net metering policy, numerous utilities in the state, including El Paso Electric, the City of Brenham, CPS Energy, and Green Mountain Energy, have policies crediting solar system owners for surplus electricity production. Under net metering policies, excess electricity generation earns credits on electric bills, which can be utilized during periods of low solar output to offset utility purchases.
Solar Rights Protection
For residents residing in neighborhoods governed by homeowners’ associations (HOAs), concerns about HOA regulations impeding solar adoption may arise. However, Texas enforces a solar rights law prohibiting HOAs from barring solar energy systems on their properties, providing homeowners with assurance to proceed with solar installations.
Also, House Bill SHB 2156 is a significant step forward in protecting consumers within the solar industry. The primary goal of SHB 2156 is to enhance consumer protections in the solar industry. As solar energy becomes more popular, so do the potential risks and pitfalls for consumers. This bill aims to mitigate those risks by establishing clear guidelines and protections for consumers purchasing solar products and services.
Federal Solar Tax Credit
Moreover, federal solar incentives like the Investment Tax Credit (ITC), now known as the Residential Clean Energy Credit for residential systems, enable homeowners to slash solar system costs by 30 percent. Notably, the ITC applies solely to outright PV system purchases (via cash or solar loans), with the tax credit’s significance contingent on sufficient income unless qualifying as a tax-exempt entity, potentially qualifying for a direct payment. You can find out how to make the most of the Solar Tax Credit in our Article.
