Many folks have begun tossing around the idea of the monetary benefits of going solar in Texas. While going solar in homes or businesses is a great ide, a good chunk of people never get past the contemplation stage. It can feel overwhelming to try to overhaul your current systems for obtaining and using energy, and many wonder if it’s worth the transitional work in the long haul.
For residents of Texas, tax credits and rebates have made going solar easier and cheaper than ever, especially with help from Go Solar Power.
Read on to learn more about the tax benefits, rebates, and other factors that make solar panels an excellent choice for your home or business.
Solar Rebates in Texas
Texas is one of the best states in America to use solar panels, and things are only looking up for prospective solar panel users in the Lone Star State. Aside from Texas’s abundant sunshine, it’s now home to many rebates for homeowners and businesses that install and utilize solar power.
These incentives can not only help with the cost of purchasing and installing solar energy systems, they can save you significant amounts of money on your electric bills each month.
To find these programs, you may have to do a little digging on your own, as Texas doesn’t have a formal state tax credit for solar energy. However, many utility companies and local government agencies do provide rebates and incentives to those who use solar panels.
For example, residents of Austin that use Austin Energy can receive a rebate of $2,500 after taking a course and installing qualifying solar panels. The City of San Marcos, on the other hand, offers up to $1.00 per watt up to $2,500 for families and $5,000 for commercial operations.
Check with your local utility companies and government agencies to see what kind of breaks, rebates, or incentives may be available to solar panel users.
The value of these incentives can change or drop quickly, especially as more families and businesses begin to use solar panels, so it’s in your best interest to invest as soon as possible.
Net Metering Credits for Going Solar in Texas
Many utility companies have programs that provide credits to solar panel users when their system generates extra electricity.
These credits offset periods of time when the solar panels cannot meet your household’s needs, like nighttime or cloudy days, instead of having to purchase electricity from the utility companies.
Check with your local electric company to see if they provide net metering credits to households and businesses with solar panels.
Solar Panel Tax Exemptions in Texas
There are several ways to increase the value of one’s home, but typically an increased home value comes with increased property taxes. Not with solar panels! Residents of Texas can install solar panels, which raise a property’s value, without paying extra property taxes down the line.
This state tax code helps homeowners and businesses be more eco-friendly without having to pay more during tax season.
For federal taxes, make sure you seek out the Solar Investment Tax Credit (ITC). It provides a tax credit of 22% for solar projects that begin in 2021. If you install a system that costs $10,000, you will get a $2,200 tax credit on your federal taxes.
As it stands now, 2021 is the final year for residential solar panel users to get this credit. After 2021, only commercial entities will receive a 10% tax credit.
Protective Laws for Going Solar in Texas
Those who reside in neighborhoods run by a homeowner’s association may fear that they will not be allowed to install solar panels if the HOA decides against it.
Fortunately, Texas has a Solar Rights Law in place that forbids homeowner’s associations from prohibiting solar panels. This is just another protection in place that allows you to go solar without worries.
If you’re ready to get started on your solar panel project, please contact us today. We are passionate about helping families and businesses lead a more sustainable and energy efficient way of life.