Texas State Electric Rates
Out of the 50 states, the electricity rates in Texas land right in the middle. The state is 25th for cost of electricity. The more expensive electricity is in a given state, the more financially feasible a move to solar is. A state's electric rates are one of the key factors in predicting whether an investment in solar panels makes sense.
Texas Property Assessed Clean Energy Financing
Also known as PACE, Property Assessed Clean Energy Financing gives Texans the option to finance a solar panel system installation by placing an assessment on their land. The amount that is financed can then be paid via property taxes on a yearly basis until the system is paid off. It’s important to note that not all local governments offer PACE financing. Let Energybillcruncher connect you to a few local installers so you can learn more!
Texas Interconnection Standards
Interconnection standards are rules for connecting solar and other systems of generating electricity to the city grid. These rules apply to both electricity customers and utilities. The statewide standards in Texas make interconnection less complex and expensive. Clear standards are a definite benefit when one is trying to bring a solar energy system online and attached to the grid, so it has the earning potential of selling excess power to the grid.
Texas Energy Rebates
Solar power rebates are incentives federal or state governments offer to reduce the cost of going solar. Texas does not offer state rebates, but many utilities and local governments do. Rebates are either paid to the homeowner in a lump sum, or can be taken off the installer’s bill. The benefit of going the latter route is that the installer usually handles the paperwork.
Texas Property Tax Exemptions for Energy
Texas offers property tax exemptions for installed solar systems, a great benefit. Property tax exemptions allow businesses and homeowners to exclude the added value of a system from the assessment of their property. You keep paying the same property tax you paid before adding to the house. This exemption makes it more economically feasible for a taxpayer to install a solar system.
Federal Tax Credit
In addition to the above, Texans who install a solar system and own said system get the added benefit of the Federal Investment Tax Credit. This credit allows solar owners to deduct 26% of the system’s cost from their Federal taxes. Starting in 2023, that percentage is expected to drop to 22% and will likely continue to fall as the years go on, so don’t delay when it comes to exploring your panel options!