Everything’s bigger in Texas, or so everyone likes to say.
The same could eventually be true for solar power production. Because of Texas’ size and climate, it has the potential to rival California for the state with the largest solar-energy potential.
20% of the United State’s solar energy potential could rest in Texas. While there’s a lot of improvement to be done as far as encouraging people to adopt solar energy, Texas could be one of the best states in the union when it comes to adopting solar energy.
Texas is a state filled to the brim with history and natural beauty. Preserving Texas and all it has to offer is key. And as a homeowner, you have a lot to gain from installing a solar panel, with energy savings and more to look forward to.
Here’s why solar power in Texas is a great idea.
Solar Power in Texas Simply Makes Sense
Adopting a solar panel can be a fantastic way of helping you save money on your energy bills.
Think of how much money you already spend on your utility bills, especially during the hottest parts of the year. Wouldn’t you like to shave a few dollars off of your bill?
In fact, Texas may be able to produce more solar energy than any other state if the local government in Texas really works at encouraging residents to adopt solar energy with added incentives like rebates and tax breaks.
Despite Texas’ potential in producing renewable energy (as of right now people believe that Texas has both the largest solar and wind energy potential in the entire country), Texas’ RPS goal, which calls for a certain percentage of their energy to come from renewable sources, is embarrassingly low.
Texas RPS Carve Outs
There is no specific solar RPS carve out in Texas, although 96% of Texas’ renewable energy is currently produced by wind.
Hopefully, Texas will consider adopting a solar RPS carve out sometime soon since this is a fantastic way of encouraging more people and utility companies to consider solar energy.
You Can Save Money By Going Solar in Texas
By going solar in Texas, you can save money on your utility bills. On average, Texans can expect to save up to $240 annually on their utility bills.
There are many homeowners across Texas that saves much more than that. Solar energy can be a fantastic way of making the best of the long summer months.
While installing a solar panel system may feel like a hefty investment at first, the system can pay for itself within a relatively short period of time (twelve years in Texas on average) and may save you thousands of dollars over the lifetime of the system.
Texas Solar Case Study
Let's take a look at the numbers, to get a closer look at expected costs and savings in Texas:
A 5KW solar power system in Texas will set you back about 25,000 dollars. Yes, we know, it’s a lot. But don't worry, that rate is going down. But how?
• To the initial cost, now let's apply the incentives, tax breaks, and available rebates. That will drop the price to an about half of the initial price (believe it or not) to around $13,000 dollars.
• Add in your savings in year one, calculate a mild increase in oil prices, and now the system cost will be around the $12,225, which is quite great.
• That brings your return of investment to about 12 years. Not bad at all.
• Take also to account a great increase in your home value.
• Not less important, you are now producing clean energy. And that's great.
*The above figures are just an estimate. Every house is different and so the expected costs and savings are different from home to home.
The cost of your system depends on your home, your utility company and many other factors.
Here are more case studies you can check, from real people that installed solar:
- For this central Texan couple, going green was of key importance when it came to building their dream home.
Bill and Diane DeMeo installed a 10kw solar panel system on the roof of their home, and reduced their energy bills to a cool $450 a year.
- This elderly couple commissioned a solar installation company to build a 9.75kW system on their property.
By taking advantage of a CPS solar rebate, the couple was able to build a system that met most of their energy needs and have been able to reduce their own cost of living thanks to blasting away their utility bills.
And it’s not just homeowners taking advantage of the power of the sun. The University of Texas’ medical center commissioned and built a 248 kWp system in the buildings’ parking lot. The system exceeded its expected energy output by over 5%.
In a recent report by Environment Texas, the city of San Antonio had produced up to 90 megawatts of utility-scale solar on the grid and had an additional 15 megawatts produced from direct generation.
Don’t Wait to Purchase Your Solar System
As an early adopter, there’s a lot you can gain from installing a solar panel system.
While a solar panel system can be a hefty initial investment, solar systems in Texas may be able to pay for themselves in about twelve years, not including any potential rebates or tax credits.
Texas Homeowner Solar Power Incentives, Rebates and Tax Breaks
Lower Your Utility Costs On average, you already pay about $.12/kWh for energy in Texas, which is just slightly below the national average. But as you’ve no doubt realized, the relatively low price of energy in Texas is mainly due to the fact that fossil fuels are relatively cheap right now.
This won’t always be the case forever and the tax fossil fuels have on the environment is too big to ignore.
Think of how much you pay for electricity during the hottest parts of the year. Adopting solar energy in Texas is both a great way to shave money off of your already excessive energy bills and help save the environment.
Solar Rebates Unfortunately, Texas lacks a statewide rebate program.
But many utility companies in Texas offer their own solar rebates. For example, CPS Energy offers rebates of about $1,600/kW with a cap of $25,000. El Paso Electric offers about $750/kW and a cap of $7,500.
Here are all the Texas Rebates Programs available to you.
Unfortunately, Texas doesn’t offer a state solar tax credit. Right now, however, you can still take advantage of the 30% Federal solar tax credit, which is available for solar panel systems installed before or during the 2022 tax year.
Act quickly so you can still take advantage of the tax credit.
Property Tax Exemptions
Thankfully, Texas does offer a property tax exemption.
Solar panel systems can add thousands of dollars in increased home value to your property. This added value is exempt from property taxes, meaning you won’t have to pay more on your property for benefitting from solar energy n Texas.
Unfortunately, Texas doesn’t offer a solar system sales tax exemption like many other states do.
A sales tax exemption may be a fantastic way of encouraging residents to adopt solar energy, helping residents save money on installing the system.
Texas Financing Options and Getting Solar For Zero Down
Solar energy is a fantastic investment when it comes to saving money on your energy bills.
But not everyone is equipped to make a big initial investment. While some residents may benefit from rebates depending on where they live, sometimes it’s easier to look into options for obtaining a solar panel system for zero money down, which is a great opportunity to many.
Is It Worth It to Invest in Residential Solar Energy in Texas?
Yes, Residential solar energy is a fantastic option for many people.
Depending on your potential solar PV quotes, you could expect to shave a lot of money off on your utility bills.
And when you consider the environmental benefits, solar energy is an option that benefits both you and your state. Within twelve years, your solar energy system may pay for itself based on the output alone.
How It Works
Leasing a solar panel system is simple. By signing up for a lease agreement, you can obtain a solar panel system for zero money down.
Depending on the terms of your lease you may be able to buy the system outright. Most leases last for about twenty years.
Solar Power Incentives in Texas
Incentives can help significantly cut back on the listed price of a solar panel system.
But keep where you live in mind and what utility companies you purchase your energy from. Rebates can vary based on your utility company since there is no statewide rebate program.
But if rebates are available to you, they can help significantly shave the cost of the solar panel system down. If you lease a system, you won’t be able to personally benefit from rebates so keep that in mind if you live somewhere where fantastic rebates are worth considering.
Can I Lease the Solar System in Texas or Should I Buy It?
Whether you lease or buy a solar panel system depends on your own personal situation.
If you can’t make a hefty initial investment and want to begin shaving money off of your utility bills immediately, consider leasing your solar panel system since you won’t have to put any money down on initially obtaining the system.
But if you can make the investment and want to consider benefitting from solar rebates and tax credits, consider purchasing the system instead.
Both can be a fantastic way of helping you save money on your utility bills, protecting the environment, and adding thousands of dollars of potential increased value to your home.
What About Texas Net Metering?
There is no statewide net metering program. Net metering is a process that involves being connected to the general electric grid and both monitoring your solar panel system’s energy output and selling back whatever excess energy you produce back to the utility companies.
Most states, even if they don’t necessarily promote solar energy, have some kind of net metering program. Texas is the odd man out.
In addition, Texas also doesn’t offer solar performance payments on a statewide level.
By offering a statewide performance program or net metering, Texas could help encourage residents to adopt solar energy at a higher level than before and help encourage renewable energy production.
Texas has the potential to be the nation’s largest producer of wind and solar energy.
With all the sunlight that Texas receives, Texas would be a natural when it comes to adopting solar energy.
Solar energy can be a fantastic way to save money on your utility bills.
As a homeowner you have the option of considering whether to buy or lease a solar panel system. What decision is best for you depends on your own unique situation.
In conclusion, going solar in Texas is a fantastic option to consider. But there’s much to be done when it comes to encouraging the production of residential solar energy.
As being an early adopter, you can play a part in encouraging Texas to take renewable energy by the horns.
Texas may not have a state-wide rebate or net metering program yet solar is a still a great money saver, and it only going to get better. Get a Free Solar Quote from Trusted installers in Texas