The popularity of solar power has been through the roof recently, with more and more American homeowners making the switch to this new and exciting form of energy.
If you’re considering making the switch yourself, you might be curious what the various benefits are. Aside from bettering the planet and limiting your own energy bill, you might be surprised to find that switching to solar can actually help save you money on your taxes.
What are the current Texas solar incentives and what do you need to do to be eligible for them? Read on and we’ll walk you through what you need to know.
Federal Solar Incentives
As a resident in Texas, it goes without saying that you will be eligible for the solar incentives that are available throughout the country.
The current federal tax incentives regarding solar will be in place through 2024. Under these plans, you can get a credit towards your taxes that is worth 26% of the overall costs of your construction and installation.
Anyone who has installed solar in the past year or plans to during the calendar year can claim this tax credit for their next return. Of course, in order to claim this tax credit, you will need to owe money to the federal government.
It is a credit and not a refund. It’s important to understand this distinction.
Solar Incentives in Texas
Of course, additional money can be saved if you look into the solar incentives that are available within the state of Texas. There isn’t a statewide tax credit available within Texas as a whole, but many local governments are offering different plans to those who want to make the switch.
If you live in Austin, for example, it is possible to get a rebate worth $2,500 when you install a solar system. You can also sign up for the Value of Solar Tariff, which will pay you per kilowatt that your panel generates.
Customers of the CPS Energy company can also receive payments and refunds for the panels they install. Other smaller utility companies will offer rebates for homeowners, you just need to do some shopping around to determine what might be right for your home.
As we mentioned, the state of Texas does not have statewide policies regarding solar. However, there are utility companies across the state that do run net-metering plans.
These companies run the policy that you can receive credit on your electric bill if you push the additional solar energy you produce back to the grid.
When a cloudy week comes along and you do need to rely on the grid for power, your existing credits can help to cover this cost.
Understanding Texas Solar Incentives
It can be difficult to parse through the information on Texas solar incentives as the state has no official policies in place. However, that doesn’t mean there aren’t a lot of different ways to save money, as the above information displays.
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