Piyush Bakshi

Going Solar in Texas - Incentives and Rebates You Should Know About Texas has great potential for harnessing solar power. Let us take a quick look at incentives offered by the state for promoting the use of solar panels. The property tax code in Texas allows property owners to deduct the value of their solar power installation from their value of the property. This exemption covers different solar energy products including PV and solar water heaters. The state of Texas does not charge income tax. This means that there are no solar-power related tax credits that you can redeem here. However, you can still avail the 30% federal tax credit given for solar installations. Unlike other states, utility companies in Texas do not offer homeowners any sola performance payments. Being paid to generate solar energy is a huge incentive for homeowners, and it’s missing in Texas. Since the electricity market in Texas is deregulated, the benefits you accrue from installing PV panels vary with your location. In Dallas, for example, the average cost of energy is approximately 8.1 cents per kilowatt-hour (kWh) for average electricity users, and about 9.1 cents/kWh for high-energy users. Even though power is relatively cheaper in Dallas, Texas, you can still save a lot on power costs by installing solar panels. Oncor Energy supplies energy to Dallas, and offers rebates of around $1,000 per kWh of solar panels. For a 5-kWh installation, this brings down the cost of installation by as much as 25%. Citizens of San Antonio can benefit from a substantial rebate offered by CPS Energy, but only if they’re planning for ownership. The energy company does not extend this benefit to leasing companies. The rebates, however, are substantial and can cover up to 40% of the price of the system. The same holds true for Austin, where rebates by Austin Energy can be up to $5,500 for a 5-kWh installation. Citizens of Plano can benefit from the Smart Energy Loan (SEL) Program that gives loans for the installation of energy efficient systems. In order to qualify for the loan, you need to be the owner of an existing residential property, and you need to be up-to-date with your mortgage and property taxes. Also, there shouldn’t be any voluntary liens on the property. Residents of Sunset Valley can get rebates over and above the ones offered by Austin Energy. The rebate of $1.00 per watt (W) up to 3,000 W offers useful saving for residents of the City of Sunset Valley.