{"id":924,"date":"2023-01-17T08:28:00","date_gmt":"2023-01-17T08:28:00","guid":{"rendered":"https:\/\/aurorasolardev.wpengine.com\/blog\/texas-solar-incentives-for-2022-and-beyond\/"},"modified":"2024-04-29T23:22:51","modified_gmt":"2024-04-29T23:22:51","slug":"texas-solar-incentives-for-2022-and-beyond","status":"publish","type":"post","link":"https:\/\/aurorasolar.com\/blog\/texas-solar-incentives-for-2022-and-beyond\/","title":{"rendered":"Texas solar incentives for 2023 and beyond"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Texas is one of the most deregulated electricity markets in the country, with individual utilities and municipalities that offer their own solar incentives at the local level. Pair these with the Federal Investment Tax Credit (ITC), and homeowners and businesses across the state can get significant savings for solar.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below is an overview of a few key solar incentives in Texas.<\/span><\/p>\n<p><em>Want to learn more?\u00a0Check out our\u00a0<a href=\"https:\/\/www.aurorasolar.com\/blog\/financial-incentives-for-installing-solar\/\">Beginner\u2019s Guide to Solar Financial Incentives<\/a>.<\/em><\/p>\n<figure id=\"attachment_6286\" aria-describedby=\"caption-attachment-6286\" style=\"width: 300px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-6286 size-medium\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/05\/Texas-State-Capitol-300x300.jpg\" alt=\"\" width=\"300\" height=\"300\" \/><figcaption id=\"caption-attachment-6286\" class=\"wp-caption-text\">Photo by <a href=\"https:\/\/unsplash.com\/@yuhandu?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Yuhan Du<\/a><\/figcaption><\/figure>\n<h2><b>Utility and local government solar incentives<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Although Texas doesn\u2019t have state-wide solar incentives or programs, many utilities and local municipalities do offer incentives to help residents and businesses go solar. The Database of State Incentives for Renewables lists over <\/span><a href=\"https:\/\/programs.dsireusa.org\/system\/program\/tx\/solar\"><span style=\"font-weight: 400;\">25 local rebate programs<\/span><\/a><span style=\"font-weight: 400;\"> across the state; be sure to check with your utility and local government to see if there are any solar incentives you can take advantage of. Your solar installer will also know the incentives available in your area. Here are just a few examples:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Austin Energy:<\/b><span style=\"font-weight: 400;\"> Residential solar customers are eligible for a <\/span><a href=\"https:\/\/austinenergy.com\/ae\/green-power\/solar-solutions\/for-your-home\/solar-photovoltaic-rebates-incentives\/\"><span style=\"font-weight: 400;\">$2,500 rebate<\/span><\/a><span style=\"font-weight: 400;\"> after completing an education course and installing PV panels. And commercial solar installations qualify for <\/span><a href=\"https:\/\/austinenergy.com\/ae\/green-power\/solar-solutions\/for-your-business\/solar-photovoltaic-pv-incentives\"><span style=\"font-weight: 400;\">one-time checks or monthly credits<\/span><\/a><span style=\"font-weight: 400;\">, with the exact amount based on the energy generation potential of the installation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>AEP Texas:<\/b><span style=\"font-weight: 400;\"> Depending on the size of the PV system, <\/span><a href=\"https:\/\/www.txreincentives.com\/\"><span style=\"font-weight: 400;\">residential customers<\/span><\/a><span style=\"font-weight: 400;\"> qualify for up to $3,000 in rebates, and commercial customers are eligible for $0.25\/W to $0.50\/W in post-installation rebates.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>City of Sunset Valley:<\/b><span style=\"font-weight: 400;\"> Residential customers can get a rebate of $1.00 per watt, with a maximum of $3,000 (3 kW) per household, as long as the system costs $6 per watt or less to install.<\/span><\/li>\n<\/ul>\n<h2><b>Texas net energy metering programs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Net energy metering (NEM) isn\u2019t technically an incentive, but it can increase the value of rooftop solar significantly. NEM allows utility customers to get compensated for the extra solar energy they produce and give to their utility \u2014 usually in the form of bill credits. Several utilities and municipalities offer NEM, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The City of Brenham\u2019s <\/span><a href=\"https:\/\/www.cityofbrenham.org\/city_government\/departments\/public_utilities\/electric.php\"><span style=\"font-weight: 400;\">Electric Tariff Program<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TXU Energy\u2019s <\/span><a href=\"https:\/\/www.txu.com\/savings-solutions\/renewable-energy\/renewable-buyback.aspx\"><span style=\"font-weight: 400;\">Renewable Buyback Program<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Austin Energy\u2019s <\/span><a href=\"https:\/\/austinenergy.com\/ae\/rates\/residential-rates\/value-of-solar-rate\"><span style=\"font-weight: 400;\">Value of Solar (VoS) Program<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Green Mountain Energy\u2019s <\/span><a href=\"https:\/\/www.greenmountainenergy.com\/home-energy-solutions\/renewable-rewards-buyback-program\/#3\"><span style=\"font-weight: 400;\">Renewable Rewards Buyback Program<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MP2 Energy\u2019s <\/span><a href=\"https:\/\/www.mp2energy.com\/solar-buyback\/\"><span style=\"font-weight: 400;\">Solar Buyback Program<\/span><\/a><\/li>\n<\/ul>\n<h2><b>Tax-Based Solar Incentives<\/b><\/h2>\n<h3><b>Solar Tax Exemption<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Under Texas\u2019s <\/span><a href=\"https:\/\/comptroller.texas.gov\/taxes\/property-tax\/exemptions\/index.php\"><span style=\"font-weight: 400;\">Renewable Energy Systems Property Tax Exemption<\/span><\/a><span style=\"font-weight: 400;\"> law, homeowners who go solar are \u201cexempt\u201d from paying higher property taxes as a result of their PV installations. Adding solar panels can increase the value of your home (sometimes by a lot), and by taking advantage of this property exemption rule, you can save even more money.<\/span><\/p>\n<h3><b>Property Assessed Clean Energy (PACE)<\/b><\/h3>\n<p><a href=\"https:\/\/www.aurorasolar.com\/blog\/your-solar-finance-primer-what-to-know-about-the-top-four-solar-financing-options\/\"><span style=\"font-weight: 400;\">PACE is a loan option<\/span><\/a><span style=\"font-weight: 400;\"> that allows property owners to finance the up-front cost of their solar installation (or other eligible improvements) through their property taxes. Several cities and counties in Texas offer PACE, <\/span><a href=\"https:\/\/www.texaspaceauthority.org\/\"><span style=\"font-weight: 400;\">learn more about them here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3>The Federal Investment Tax Credit (ITC)<\/h3>\n<p><span style=\"font-weight: 400;\">While it is not a Texas-only solar incentive, the federal investment tax credit (ITC) is one of the most important initiatives supporting residential renewable energy growth in the United States today. Recently extended by <\/span><a href=\"https:\/\/www.solarpowerworldonline.com\/2022\/08\/long-term-solar-itc-standalone-storage-direct-pay-inflation-reduction-act\/\"><span style=\"font-weight: 400;\">the Inflation Reduction Act of 2022<\/span><\/a><span style=\"font-weight: 400;\">, the solar ITC allows system owners to deduct up to 30% of the total installation costs from their federal income tax liability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Residentially, the 30% tax credit for solar panels is active through the end of 2033. For commercial installations, system owners applying for the 30% tax credit after 2025 will only be eligible to receive the full amount if certain sustainability initiatives are met and verified by the Department of Treasury.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To illustrate a simple example for homeowners, let\u2019s say that you install a system with a total project cost of $13,500. As 30% of $13,500 is equal to $4,050, the system owner would then be eligible to deduct $4,050 from their federal income tax liability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your customer\u2019s federal income liability is less than 30% of their total system costs, it is helpful to know that the solar tax credit can be applied both during the year of the installation as well as the following. For instance in the example above with a $4,050 tax credit, the system owner could elect to apply a $3,000 credit in 2023, with the remaining $1,000 against their federal income liability in 2024.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Notes: You can only roll over a tax credit for solar panels once. After the decade-long extension, the residential solar ITC is now planned for reduction to 26% in 2034, 22% in 2035, and total elimination in 2036.\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re thinking about installing energy storage at the same time, it\u2019s <\/span><a href=\"https:\/\/www.aurorasolar.com\/blog\/federal-tax-incentive-for-battery-storage\/\"><span style=\"font-weight: 400;\">also eligible for the ITC<\/span><\/a><span style=\"font-weight: 400;\">. Here&#8217;s <\/span><a href=\"https:\/\/www.aurorasolar.com\/blog\/solar-itc-extension\/\"><span style=\"font-weight: 400;\">one good ITC primer<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Download <\/span><\/i><a href=\"https:\/\/www.aurorasolar.com\/resources\/the-5-solar-buyers-guide\/?aurora_blog_cta=inline-text\"><i><span style=\"font-weight: 400;\">The 5 Solar Buyers Guide<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> to get insight on what Texan solar buyers gravitate toward which of these Texas solar incentives most in 2023.<\/span><\/i><\/p>\n<figure id=\"attachment_2761\" aria-describedby=\"caption-attachment-2761\" style=\"width: 511px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.aurorasolar.com\/resources\/the-5-solar-buyers-guide\/?aurora_blog_cta=image\"><img decoding=\"async\" class=\"wp-image-2761 size-full\" src=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/06\/5-solar-buyers.png\" alt=\"\" width=\"511\" height=\"592\" srcset=\"https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/06\/5-solar-buyers.png 511w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/06\/5-solar-buyers-259x300.png 259w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/06\/5-solar-buyers-320x370.png 320w, https:\/\/aurorasolar.com\/wp-content\/uploads\/2022\/06\/5-solar-buyers-508x589.png 508w\" sizes=\"(max-width: 511px) 100vw, 511px\" \/><\/a><figcaption id=\"caption-attachment-2761\" class=\"wp-caption-text\">Click the image to learn what each type of solar buyer is looking for in their installation.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\"><strong>PSA:<\/strong> Over half of the states have a solar access law that protects a homeowner\u2019s right to go solar, including Texas, California, and Florida. Texas\u2019 <\/span><a href=\"https:\/\/www.gosolartexas.org\/solar-rights-regulations\"><span style=\"font-weight: 400;\">Solar Rights Law<\/span><\/a><span style=\"font-weight: 400;\"> forbids homeowners\u2019 associations (HOAs) from preventing or enacting unreasonable restrictions on residents from installing solar. <\/span><a href=\"https:\/\/www.solarunitedneighbors.org\/texas\/learn-the-issues-in-texas\/homeowners-associations-and-solar-access-in-texas\/\"><span style=\"font-weight: 400;\">There are instances where Texas law does allow HOAs to restrict solar<\/span><\/a><span style=\"font-weight: 400;\">, e.g., if they\u2019re installed without prior approval or in a manner that voids the warranty, if the ground mount extends above the homeowner\u2019s fence, and if the system has an element that isn\u2019t silver, bronze, or black in tone.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are part of a HOA and are looking to go solar, check out our guide on <\/span><a href=\"https:\/\/www.aurorasolar.com\/blog\/how-to-get-hoa-solar-approval-tips-for-success\/\"><span style=\"font-weight: 400;\">how to expedite the application process<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><em><strong>Want to learn more about how to model incentives in your pitch? <a href=\"https:\/\/aurorasolar.com\/public-demo\/?aurora_blog_cta=inline-text\">Schedule a personalized, no-pressure demo<\/a>.<\/strong>\u00a0<\/em><\/p>\n<p><em>Featured image by <a href=\"https:\/\/unsplash.com\/@blunkorama?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Daniel Lloyd Blunk-Fern\u00e1ndez<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Texas is one of the most deregulated electricity markets in the country, with individual utilities and municipalities that offer their own solar incentives at the local level. Pair these with the Federal Investment Tax Credit (ITC), and homeowners and businesses across the state can get significant savings for solar. Below is an overview of a [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2044,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"post_topic":[49,11,14],"class_list":["post-924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.4 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Texas solar incentives for 2023 and beyond | Aurora Solar<\/title>\n<meta name=\"description\" content=\"The IRA has given the solar industry great long-term incentives. 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