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In Texas, population growth, environmental regulations and legislative pressures have stymied solar power for years. However, as older, carbon-based energy sources get phased out of commission, renewable energy sources like solar power are primed to leap into the spotlight. With upcoming investments in solar energy and new policies in place that remove market restrictions, Texas is expected to gain more than 4 gigawatts of solar capacity over the next five years, which should propel the state into the fray as a nationwide leader in solar energy.
AVERAGE TEXAS ELECTRIC BILL: $128.25/mo
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Texas Solar Panel Pricing
The average cost of solar panels in Texas is $3.16 per watt to $3.63 per watt depending on the size of your system, which can range from 4kW to 20kW. If you choose the average system size in the U.S., 6kW, then your total average cost would be $20,495 before taking into account any federal or local tax rebates.
According to Solar Power Rocks, the average system size in Texas is 9.8kW, which would make the total closer to $32,000. What you pay will depend on how much energy you use, how many panels you need, what part of the state you live in, and if you qualify for any tax incentives and rebates.
Federal Tax Credit
All homeowners in the U.S. who own their solar panels through outright purchase or a loan qualify for the 30 percent federal tax credit. If you choose a lease or PPA, then you are unfortunately not eligible for this credit. After 2019, the credit will be reduced to 26 percent, and after 2020, it will be reduced to 22 percent. It will ultimately expire after 2021 unless renewed by the U.S. government.
Local Utility Incentives
Texas does not have a unified tax rebate that applies to the whole state. The types and amount of rebates offered depend on where you live and what utility company you use. We recommend contacting your utility company directly to confirm what rebates are available to you.
Excess Energy Rebates
Sometimes your solar system may produce more energy that you use, and you can get credit for that excess power from the utility company through a process called net metering. The state of Texas does not currently have any laws on the books requiring companies to participate in net metering, but there are utility companies in some densely-populated areas like Dallas or Houston that choose to offer this service. Since these companies are not required by law to give you credit for excess energy, they have the right to stop at any time.So if your utility company offers net metering, it’s not guaranteed to last the duration of your payback period.
Top Solar Companies in Texas
There are more than 600 solar companies in Texas, so you have a lot to choose from. Here are the best solar companies that bring extensive solar experience to Texas.
For more than 25 years, Green Solar has partnered with homeowners to install high-quality solar systems using materials designed, manufactured, and assembled in the U.S. Green Solar offers mono-crystalline panels from top brands and has built a reputation of dependable customer service.
The company’s 25-year workmanship warranty sets it apart by covering labor for maintenance and repairs.
RGS Energy is one of the pioneers of residential solar with more than 40 years of experience in the solar business. The company’s unique Powerhouse solar shingle provides homeowners with an option that blends more seamlessly with their roofs’ appearance.
RGS Energy has shown itself to be a leader in solar technology innovation.
SunPower has been a leading innovator in the solar field since 1985 in 41 states, even launching the first solar-powered plane around the world.
The company offers its customers 60 percent more energy over a 25-year period compared to traditional solar panels with its patented Equinox solar system, protected by its unique full-system warranty.
SunPower has been a leading innovator in the solar field since 1985 in 41 states, even launching the first solar-powered plane around the world.
The company offers its customers 60 percent more energy over a 25-year period compared to traditional solar panels with its patented Equinox solar system, protected by its unique full-system warranty.
Although there is a lot of potential for solar in Texas due to plentiful sun and the nation’s highest energy consumption, there isn’t currently strong enough legislation to help solar power grow as quickly as compared to other states with legislatures have more progressive policies.
Texas has a strong wind power presence, therefore solar power is prioritized much lower in its laws and regulations. In fact, solar energy is not explicitly required in its Renewables Portfolio Standard (RPS), which means solar incentives are weaker than in other states that mandate a certain percentage of their electricity comes from renewable sources such as solar. Without these laws, utility companies aren’t required to pay fees to the state if they don’t meet a certain clean energy percentage. These fees are more expensive than offering solar energy credits to customers, so they are usually an effective motivator for utility companies to prioritize solar power.
Since 2014, any property value increase that homeowners gain by installing solar panels is exempt from the subsequent property taxes. Adding solar to your home can increase its value significantly, so the savings from not paying additional property taxes will help you offset installation costs.
At the end of 2018, Texas had enough solar installed to power 349,044 homes.
The price of solar has decreased by 47% in Texas over the past five years.
Texas ranks second in the U.S. for solar growth projections with 7,081 MW.
In 2017, San Antonio, Texas, was ranked the number six solar-friendly city in the nation based on total installed solar PV capacity.
Resources
Learn more about solar power legislation, solar tax credits, and more with the help of these resources.
Public Utility Commission of Texas
This state government agency regulates utilities in Texas including electricity. Visit their site to check on the latest announcements, learn about your rights, and receive assistance with paying your utility bill.
Texas State Legislature
Find and contact your state representatives and senators, learn what bills are being passed in the Texas house and senate, and keep up-to-date on their status.
Texas State Energy Office (SECO)
SECO works with government agencies and organizations all over Texas with the mission of reducing utility costs and maximizing efficiency. The site has detailed resources about energy programs, policies, and statistics.
DSIRE Incentives Database
Learn about Texas solar power incentives that benefit specific zip codes.
U.S. Energy Information Administration
Explore energy trends in America, how solar and renewable resources can power the nation more efficiently, and more on this government site.
Sources
http://programs.dsireusa.org/system/program/detail/173
https://www.seia.org/state-solar-policy/texas-solar
https://www.solarreviews.com/solar-panels/solar-panel-cost/cost-of-solar-panels-in-texas
https://www.solar-estimate.org/solar-incentives/federal-solar-tax-credit
https://www.energy.gov/savings/residential-renewable-energy-tax-credit
https://www.energy.gov/savings/renewable-generation-requirement
https://www.buildings.com/news/industry-news/articleid/21533/title/top-20-us-solar-cities
