Alternate Energy Producer Tariff
What You Need to Know EILP won’t offer net metering with another discounted rate on the same account, for example an electric heat rate.
Should a member’s AEP facility become inoperable require repair, the member should immediately notify EILP.
Contact Aaron Healy, Eastern Iowa REC member service supervisor, about renewable energy projects. Email or call, 1-800-728-1242.
Solar Energy Guide
Eastern Iowa REC members who have an interest in solar energy have a resource to aid in making an informed decision. The Iowa Energy Center has published the Home Series: Solar PV Energy Guide in collaboration with the Iowa Association of Electric Cooperatives, Alliant Energy, the Iowa Association of Municipal Utilities, and MidAmerican Energy with information from the Office of Consumer Advocate and the Iowa Utilities Board.
Click here to download a copy of the Solar Energy Guide. For a hard copy, contact Aaron Healy or call 800-728-1242.
Other Renewable Energy Options
EILP members can purchase energy from an Iowa wind farm through a contract signed by the Cooperative’s power supplier, Central Iowa Power Cooperative.
Energy provided under this program is billed at the normal rate, plus an additional charge (5000.50 per block) to cover the added cost of acquiring this renewable resource. We will sell wind generated electric energy in 100 kilowatt-hour blocks.
To take part call, toll-free, 1-800-728-1242.
Eastern Iowa REC has wind turbine and solar array installed at our DeWitt service center. The Cooperative’s wind turbine has a rated peak capacity of 2.4 kW. The solar array has a rated peak capacity of 3.1 kW.
Solar Incentives In Texas That Homeowners Can Qualify For
The solar energy market in Texas is booming. In 2021 in the United States, 23.6 gigawatts of solar energy capacity were installed. Of that, solar companies installed 6 gigawatts in Texas alone. Texas became the top market for solar energy in 2021. surpassing even California for the first time.
Texas receives so much sunlight throughout the year and leads the country in wind power. However, despite the Lone Star State’s ideal climate for renewable energy production, Texas burns more coal and emits more carbon dioxide than any other state.
The Texas solar market creates excellent opportunities for installers for numerous reasons. There are a variety of financial incentives, both state-wide and from local governments, that encourage solar panel installations. Understanding these programs is critical for explaining how these programs work to Texans.
For example, the Investment Tax Credit (ITC) has and will continue to fuel solar energy growth throughout the state. The federal solar tax credit is 30% for solar installations in 2022 through 2032. It’s recommended customers speak with a tax expert to ensure they can utilize the tax credit and beware of offering tax advice.
State-Level Incentives
In addition to federal tax incentives, there are local incentives throughout Texas. Let’s explore these programs so you can discuss them with potential customers.
TXU Energy Renewable Buyback Plan
TXU, an energy retailer, is based in Irving and has a buyback program for homes with solar panels or wind turbines. When homes with renewable energy systems produce more power than the home consumes, they feed the excess to the power grid, and customers receive credits on their energy bills.
To participate, renewable energy system owners need to sign up for the TXU Energy Renewable Buyback plan and enter an interconnection agreement with their local Transmission Distribution Utility (TDU). An interconnection agreement gives your customer permission to connect the solar PV system to the utility grid in their service area.
The TDU will need to inspect the solar panel system. They will then use a Smart meter to track how much energy goes from the grid to the home and vice versa. Once your customer has received the required approval, they can start receiving clean energy credits on their electricity bill.
Solar Energy System Property Tax Exemption
Because a solar energy system costs thousands and significantly reduces electricity bills, it can increase your customer’s property value. However, there is a property tax exemption from charging additional property taxes due to an increase in home value from installing a solar power system. In other words, going solar won’t cause your customer’s property taxes to increase.
Fannie Mae Green Initiative Loan Program For Multifamily Properties
This program provides free water and energy efficiency audits and technical solar assessments. In addition, it finances green property improvements for multi-unit housing. The eligible green upgrades include:
- A photovoltaic solar system.
- LED lighting.
- Energy-saving HVAC equipment.
- ENERGY STAR appliances.
To qualify, the property owner must commit to upgrades projected to decrease the entire property’s annual energy and/or water consumption by at least 30% combined. At least 15% must be projected energy savings.
Net metering
Although there isn’t a state-wide policy requiring net metering (also known as net energy metering), some utility companies offer it. In fact, CPS Energy. El Paso Electric and Green Mountain Energy provide bill credits to solar system owners for excess power they supply to the electricity grid. When the property needs more power than the solar system provides, the utility company will first use the credits from surplus solar energy before charging customers for the electricity.
These programs allow homeowners to accrue credits for each kilowatt-hour of power that the utility company tracks. Depending on the climate and energy use in the home, there might be certain months where the solar homeowner banks more solar credits and other periods where they consume more. Net metering programs are beneficial to solar system owners because they can utilize excess energy without relying on battery storage systems.
Local Solar Rebates
There are also some photovoltaic incentives available through local governments and utility companies.
American Electric Power (AEP) Solar Rebates
The Smart Source Solar PV Program offers rebates for residential and commercial AEP Texas customers. Systems that are 3 kW 5 kW can qualify for 450,500 in rebates. For systems that are 5 kW 7.5 kW, they are eligible for 5000,250. Projects that are 7.5 kW to 30 kW can qualify for 3,000. In addition, there are tiered incentives for commercial solar systems by system capacity. Solar companies need to be enrolled in the program for projects to qualify.
Austin Energy
Residential customers of Austin Energy can qualify for 5000,500 in rebates by completing Austin Energy’s solar education course and installing a home solar system with a Participating Contractor. The solar installer submits the rebate paperwork on the customer’s behalf.
CPS Energy Solar Rebates
This utility company serves the city of San Antonio and offers rebates for residential and commercial solar energy projects. Residential customers can qualify for 5000,500 in rebates and a 500 premium for using local solar panels. In addition, it offers a tiered incentive for commercial solar projects based on their capacity.
Oncor Solar Photovoltaic (PV) Program
Oncor offers solar rebates for residential and commercial solar installations. Residential projects between 1 kW and 15 kW can qualify for 8,500. In addition, commercial projects between 5 kW and 300 kW of capacity are eligible for up to 120,000 in rebates.
To qualify, applicants must be a customer of Oncor, which has a service area that includes Dallas, Fort Worth, and Arlington. Also, the system must be installed by an approved service provider.
Solar Incentives Could Convince Texas Homeowners To Switch To Solar
Numerous solar incentives throughout the state are making solar energy more appealing and a Smart financial investment. Combined with Texas being one of the sunniest states in the country, these factors make the solar energy market poised for further growth. As a solar professional, there are many opportunities in serving this booming market.
GreenLancer has designers and engineers that specialize in Texas AHJs. Sign up for free and shop our catalog of services for better quality designs, faster turnaround, and an all-in-one communication platform to serve your permit design and engineering needs.
Utility rebates for solar in Texas
Several solar rebates are available in Texas, courtesy of utility companies. These are for both solar water and solar PV systems.
American Electric Power Texas North Company (AEP-TNC) and AEP-Texas Central Company offer rebates for solar (PV) systems. The residential rebates for 2022 are
State property tax exemption in Texas
Texas has a robust state property tax exemption for solar. The law lays out a full exemption for value added to a property by a solar or wind-powered energy device installed primarily for the production and distribution of energy for on-site use.
Net metering is allowed in Texas, but no standards are laid out by the state. Because the state is so large, a variety of investor-owned utilities and public city utilities provide electricity, meaning your best bet is to contact your utility directly to find out about net metering options before you install solar.
The main utilities all offer some form of net metering or compensation for excess energy exported to the grid from residential solar: Champion Energy, Green Mountain Energy, Infuse, Shell Energy, Octopus, Pulse Power, Reliant, and TXU all offer programs.
Rhythm Energy offers a one-to-one kWh rate Rooftop Solar Buyback Plan. This is a 12-month contract with a fixed energy rate.
Customers in the Oncor and CenterPoint service areas can sign up to net metering through Shell Energy, formally MP2. Shell Energy credits surplus generation at the retail price and uses it to offset future bills. Unused credits are cleared in December, however, with no payment at that time. Shell Energy offers two types of solar buyback plan, a 12-month and two-year contract, as well as EV charging specific plans. Terms and rates vary depending on where you live in Texas.
Green Mountain Energy offers a similar net metering program to Shell Energy, serving customers in Oncor, CenterPoint, AEP and TNMP service areas. Its Renewable Rewards buyback program offers retail rate but no annual payout or indefinite rollover of credits.
TXU Energy has a Renewable Buyback program with a reduced feed-in tariff that changes based on service area. Contracts can last two years or be month-to-month; the buy-back rate is higher for the two-year contract. This program serves customers of Oncor, CenterPoint, AEP and TNMP and the utility will cover cancellation fees if you switch from another utility (with some limits).
Reliant provides a Solar Payback plan for customers in Oncor and CenterPoint service areas. This plan credits surplus energy at full retail price but only to offset monthly consumption.
El Paso Electric (EPE) offers net metering for systems up to 50 kW and credits surplus energy at avoided cost rates. Customers can reduce their power bill to a monthly minimum of 30 (to cover costs of distribution, etc.) and the utility pays out any unused excess annually (with some limits).
Lubbock Power light (LPL) has a net metering program but is in the process of connecting fully to the ERCOT grid, which may change the utility’s policy. Currently, LPL doesn’t offer credits or payments for any surplus energy produced by residential customers but does charge residential solar customers a lower rate than standard customers for electricity consumed beyond the customer’s own energy production.
Xcel Energy offers three options for residential solar customers in Texas: an offset program where customers consume the electricity they produce and pay standard rates for any they buy from the grid; a net billing option where any excess generation earns a bill credit as kWh multiplied by the utility’s “fuel cost factor” which varies monthly (this option comes with a 20 monthly fee); and an independent option where you have two meters, one measuring your energy production and one the energy you draw from the grid, with all PV energy pushed to the grid and compensated using the “fuel cost factor” calculation, resulting in a lower rate of return (plus a 20 monthly service fee).
Entergy Texas offers a form of net metering but only credits customers at avoided cost. If a customer reaches a balance of 50 or higher, the company will send a check. Otherwise, credits roll over month to month.
See Local solar incentives above if you live in Brenham, Brownsville, or Denton.
.50/Wdc for systems sized 0.001-2.999 kWdc, then 450,500 for systems sized 3-4.999 kWdc; 5000,250 for systems 5-7.499 kWdc; and 3,000 for 7.5-30 kWdc systems.
CPS offers a solar water heater rebate amounting to the listed calculated savings for the system multiplied by
Final thoughts on state solar incentives in Texas
Texas gets more sun than average in the U.S., meaning an 8-9 kW array can meet most households’ energy needs. With the federal tax credit and a variety of local rebates available, plus net metering and a state property tax exemption, Texas is a great place to go solar!
The trick in Texas is to do your research before you sign a contract with an installer. Depending on where you live, you may want to design your home solar installation in different ways to take advantage of local incentives. For instance, some rebates may be available for solar only, while others include a rebate for storage. Homeowners may also be able to access different rebate levels by slightly adjusting the size of their array, such as to 7.5 kW from 7.4 kW, or for using panels made locally.
Leigh Matthews, BA Hons, H.Dip. NT
Leigh Matthews, BA Hons, H.Dip. NT, is a science writer and long-time vegan, environmentalist, and zero-waste, self-sufficiency wannabe. Her work on solar policy has been published in the Canadian National Observer.
.60, up to a maximum of 5000,000.
CPS also offers rebates for solar PV installations, up to a maximum of 5000,500 per residential project, plus a 500 premium for projects using local modules.
Texas Solar Incentives: Tax Credits Rebates Guide (2023)
Get a quote from a local installer by using our tool below.
Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today’s Homeowner. She earned her bachelor’s degree in psychology from the University of St. Scholastica and her master’s degree from the University of Denver. Before becoming a writer for Today’s Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she’s not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.
Roxanne Downer is a commerce editor at Today’s Homeowner, where she tackles everything from foundation repair to solar panel installation. She brings more than 15 years of writing and editing experience to bear in her meticulous approach to ensuring accurate, up-to-date, and engaging content. She’s previously edited for outlets including MSN, Architectural Digest, and Better Homes Gardens. An alumna of the University of Pennsylvania, Roxanne is now an Oklahoma homeowner, DIY enthusiast, and the proud parent of a playful pug.
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Are you a Texas property owner worried about your state’s rising electrical costs? You’re not alone. One of the best ways to save money in 2023 is by purchasing a renewable energy production system for your home. Solar power can produce tons of electricity in a state as sunny as Texas, helping to minimize how much you spend on utility bills.
In fact, after the initial installation costs, a solar energy system can save you thousands of dollars per year. With the help of federal, state, and local financial incentives, your new solar photovoltaic (PV) system will be cheaper than ever.
For these reasons and more, it is a great time to buy solar panels in Texas. Keep reading to learn how your purchase and installation of solar panels in the Lone Star state can be made more financially accessible.
The Best Solar Incentives, Tax Credits, and Rebates in Texas
There are several public and private incentives in Texas that help you save on your purchase of solar panels:
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a 30% federal tax credit available for home solar systems purchased and installed by the end of 2032. This is a significant chunk of money taken off their income taxes. The ITC has also expanded the country’s solar industry. It has helped create hundreds of thousands of jobs while bringing billions of dollars into the economy since it was enacted in 2006.
Texas Solar Property Tax Exemption
Texas will exempt property taxes on the added value to your home that comes with installing a solar energy system.
Texas Net Metering
Electricity companies in Texas have all adopted net energy metering, a policy that ensures your solar panels will be connected to the public-utility power grid and that surplus power created by your panels will be transferred to the grid. You can offset the cost of power drawn from the electricity grid due to net metering or be completely self-sustainable by building a zero net energy system.
The minimum compensation you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, it remains hugely beneficial for owners of solar energy systems.
TXU Energy Home Solar Buyback Plan
Customers can get paid for the excess energy their solar installation creates. You can earn credits to offset up to 100% of your energy changes on your monthly utility bills. This program is similar to net metering in other states.
Commercial Texas Solar Incentives
Solar Incentives for Nonprofits and Businesses in Texas
Unfortunately, very few incentives are available specifically for nonprofits and businesses in Texas. However, the Solar Energy Devices Franchise Tax Exemption enables businesses to deduct the cost of a solar energy device from franchise taxes.
USDA REAP Grant
The United States Department of Agriculture (USDA) has launched a program designed to increase investments in clean energy called the Rural Energy for America Program (REAP). REAP helps agricultural producers and rural small businesses lower their energy costs and consumption by financing loans and grant funding to purchase and install renewable energy systems.
You are eligible to participate in the REAP program if you are an agricultural producer with at least 50 percent of your gross income coming from agricultural operations or a small business in eligible rural areas.
Property Assessed Clean Energy (PACE)
Texas offers access to financing for energy-efficient power systems and upgrades through the PACE financing program. This program allows property owners to finance their purchase of solar energy systems and to pay back the money owed through a voluntary property tax assessment. While it may not lower the cost of going solar, it can be a great means of financing for homeowners that can’t take out traditional loans.
Texas Resources
They say that everything is bigger in Texas, and the size of residential electric bills is no exception. With residential energy bills that are 20% higher than the national average, Texans are desperate for some relief. That’s why it is a great time to buy a solar (PV) system in Texas, plus there are plenty of affordable solar panels to choose from in the state.
Solar is the perfect energy source for a state that gets a lot of sun. Texas averages over 300 sunny days per year, which is leaps and bounds higher than the American average of 205 days per year. Indeed, Texas is well-positioned to produce massive amounts of solar power, so it is no surprise that it is ranked second in the country for solar energy system installations.
Instead of searching for the one solar provider in a town hours away, as may be the case in some states, most large towns in Texas will have businesses ready to sell and install solar photovoltaic systems. Also, with many statewide financial and tax incentives available for purchasers of PV systems, it is no wonder Texans love solar.
Finally, solar panels can dramatically increase your home’s value. According to Zillow, the average home experiences a 4.1% increase in value after adding a solar power system. In the United States, the average home will see its value increase from solar panels by close to 9,274.
Are you sold on solar for your home? View the best solar options for your home.
Estimated Solar Savings in Texas
Texas is one of the sunniest states, as you can see on the World Bank Global Solar Atlas. and ranks second in the country for solar power. Say a typical 6 kW home solar system generates over 9,500 kWh of energy per year under favorable site conditions, and residential customers in Texas pay an average electric tariff of 14.26 cents per kWh, according to the U.S. Energy Information Administration. Based on these figures, 9,500 kWh of solar generation could save you over 450,350 in electric bills in Texas each year.
According to a 2022 study by the National Renewable Energy Laboratory (NREL). residential solar systems have a market price of 5000.95 per watt in the U.S. This means that a typical 6 kW solar panel installation costs around 17,700. Here’s how solar incentives can help lower your system cost in Texas:
- You can claim the 30% solar federal tax credit — worth 4,410 in this case — and your project cost decreases to 13,290.
- Assuming you can claim additional incentives through one of the programs available in the state, your upfront cost will drop even more. For example, the AEP Texas Smart Source Solar PV Program would drop your cost by another 3,000, bringing your total to 10,290.
A home solar system with a net cost of 10,290 and annual savings of 450,350 has a payback period of seven to eight years. Plus, high-quality solar panels have a warranty of up to 30 years, which means the payback period is only a small fraction of their lifespan.
Are Solar Panels Worth It in Texas?
Texas has abundant sunshine, which increases the productivity of solar panels. In addition, many of the power companies operating in the Lone Star State have solar incentive programs, which you can combine with the federal tax credit to capitalize on savings for your solar project. Texas does not have a statewide net metering policy, but many local electricity providers offer the benefit. These factors make it worth it for homeowners to make the switch to solar in Texas.
Each incentive program has its own conditions and eligibility requirements. However, the best solar companies are familiar with the application process of each program and can check to see if your solar installation qualifies.
Energy Star-certified products Comprehensive active monitoring 25-year warranties on products and labor
Offers a range of financing options 24/7 customer service line Panel insurance protects against theft and damage
Frequently Asked Questions About Texas Solar Incentives
Does Texas have a solar rebate?
There are no Texas solar rebate programs. However, the utility companies operating in the state offer several incentive programs, some of which include solar rebates. To qualify for a specific incentive, your home must be located in the service territory of the power company managing the program.
What are the current solar incentives available in Texas?
Texans get a property tax exemption for renewable energy equipment. So if you install solar panels, any resulting increase in your home’s value is exempt from your property taxes. As a U.S. resident, you also qualify for the federal solar tax credit. Plus, local solar rebate and incentive programs are available from power companies such as CPS Energy, TXU, Oncor, CenterPoint, AEP Texas, Austin Energy and Green Mountain Energy.
What is the Texas solar energy credit rate?
Texas does not have a statewide net metering policy, but some electricity providers offer solar buyback programs. The compensation rate for energy bill credits varies depending on the program. You can contact participating electricity providers for more information.
How much is the solar tax credit in Texas?
As a Texas resident, you have access to the 30% solar investment tax credit, which is a federal incentive available in all states. Texas does not offer a local tax exemption for solar systems, but there is no state income tax in the first place.
Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy-efficiency and solar consulting experience covers sectors including banking, textile manufacturing, plastics processing, pharmaceutics, education, food processing, real estate and retail. He has also been writing articles about energy and engineering topics since 2015.
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.