Texas has an incredible potential to become a leader in solar power production. The state has an abundance of open lands that are perfect for the generation of solar electricity. Texas also has more sun peak hours than the majority of the states in the country, about 5 hours a day, making it the ideal place to adopt solar. With so much sunlight throughout the year and such a diverse landscape, it is a perfect time to take advantage of solar.
In Texas, the average solar panel cost as of October 2019 is $2.90/W. If you are looking to install the 5kW solar panel system you will pay anywhere from $12,000 to $17,000, with the average market price for solar being about $15,000. This price can be decreased by thousands of dollars after deducting the Federal Investment Tax Credit, state incentives and other rebates.
The Federal Investment Tax Credit – federal government program that rewards you for investing in solar energy. You get a 30% credit on your taxes in the following year after installing solar panels, including parts and labor.
Texas Solar State Credit – Texas does not have an income tax, so there are no tax credits to be collected.
Property Tax Exemption – the residents of Texas are 100% exempt from paying taxes on the increased property value due to solar power system installation.installation.
Net Metering Program – Net Metering requires utility companies to estimate the generation and consumption of electricity produced by your solar power system and to credit you for any excess of solar power. Texas does not have a statewide Net Metering program, however, many local utility companies do offer this program.
Texas Solar Power Rebates – Even though Texas does not have a statewide rebate program, many electric companies offer rebates to their customers. If you live in an area that is being served by one of these utilities, you might be eligible for some solar rebates.
When considering Texas’s solar energy advantages and disadvantages, it is obvious that solar is a great option here. With so much sunlight, Texas has the potential to become a leader in solar generation in the very near future. There is simply no reason not to become a part of the solar community and start making your own electricity in Texas today when the solar prices are lower than ever and you can still take advantage of the Federal Tax credit.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.