Texas is one of the leading states where Solar Energy is dominant. Here, we achieve an energy production capacity of about 17.247 Megawatts. However, this energy helps cover the needs of 1.9 million homes. Furthermore, the cost of electricity is 20% higher than in any other state therefore solar incentives are of great assistance. Therefore, this article provides useful information to give a better insight into incentives.
Texas Local Solar Incentives
Solar incentives totally depend upon the location. However, these may vary from exact location to local governments or utility companies. The table like below provides a reliable insight into different incentive programs offered across Texas.
|
Local Solar Incentive in Texas |
Eligible Location |
Estimated Savings |
Qualifications |
Frequency |
|
Oncor Programme |
Oncor service territory with Dallas Fort side area |
Upto $9000 per PV solar system |
Availability for 3-15 kW per solar system |
One time |
|
Centrepoint Energy Programme |
Territory of Centrepoint service |
$225 per kilowatt |
Approved contractors offer it |
One time |
|
AEP Smart Solar |
Surrounding territory of AEP territory |
up to $3000 per kW |
Availability for home solar systems up to 30 kW |
One time |
|
Austin Energy |
Locality of Austin |
Up to $2500 for a PV system |
For home systems with at least 3 kW of installation capacity |
One time |
Net Metering in Texas
The process of net metering acts as a credit scheme, especially for the public of Texas. It credits you for the extra energy that your panels produce. For example, suppose your solar system generates extra energy that you don’t know where to spend.
But when you come through a credit scheme then you become curious. There, comes the net metering that helps to send your energy to the grid, and there you get credits accordingly.
Net metering acts as a solar buyback program where you get credits for the extra energy. Such credits are extremely helpful for paying energy bills. There are no statewide net metering policies in Texas but many different solar retailers help you with buyback plans.
Although there are many companies that offer the credits one of the popular names is Austin Energy. As different companies manage such credit programs in Texas therefore requirements and compensations vary accordingly.
Estimated Solar Savings in Texas
Talking about Texas we come to know that it is not only the sunniest state but also ranks ranks on second position for solar power. If we follow a 6 kW solar system then we come to know that it helps to generate about 9500 kWh of energy annually.
However, if we the residential customers then we gain about an electric tariff of 14.26 cents per kWh. Likewise, following the U.S. Administration of Energy then we get 9500 kWh which helps you save $1350 in electric bills on an annual basis.
A study was conducted in 2022 by the National Renewable Energy Laboratory. Following the systematics we come to know that Residential solar systems abide by a market price of $2.95 per watt.
Therefore we know that a normal 6 kW of solar installation costs you about $17,700. Some of the ways below are helpful to show how you can easily lower your system costs in Texas:
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The residents of Texas can easily claim federal tax credits. Here, the value accounts for about 20%. Especially following it for $17,700 the amount would cost about $4410. Similarly, the project cost will decrease to about $13,290.
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If you are thinking about additional incentives and upfront costs then there is a different perspective. However, if you become eligible to grab any such solar incentive then it will act to decrease your upfront cost. For example, if you follow the AEP Texas SMART Source Solar PV Program then the cost will decrease. Thus, there we will get the drop in your cost to about $3000.Therefore, it will change the total to about $10,290.
For example, if we follow a home then the net costs and annual savings will have a different payback period. If we follow a system with a net cost of $10290 and annual savings of $1350 then the payback will be for years.
Moreover, the better quality solar panels have a high warranty. Therefore, the warranty is of 30 years. So, it means that the payback duration will be less of a lifespan.
Higher warranty = Lesser Payback
Solar Costs in Texas by System Size
System size and solar costs have a different relation in Texas. For example, a normal 5-kilowatt of solar panel costs you $12,550 in Texas. However, this state achieves the second rank when it comes to installation. This is because there are excessive sunshine and solar-friendly policies in Texas.
Talking about the per watt solar cost there is $2.51 per watt in Texas. Surprisingly, this cost is lower as compared to other states. For example, the national average cost is $2.5 per watt. However, when it comes to Houston then it is $2.51 per watt.
Therefore, it means that there is more savings in Texas as compared to any other state. Hence, this statement clarifies the idea that residents of Texas are getting more benefits than the rest of U.S. residents.
Below is the estimation of solar pricing for different system sizes in Texas. Let us follow this approach as follows:
|
System Size ( in kW) |
Cost of System |
Cost after federal tax credit |
|
5 |
$12550 |
$8785 |
|
6 |
$15060 |
$10542 |
|
7 |
$17570 |
$12299 |
|
8 |
$20080 |
$14056 |
|
9 |
$22590 |
$15853 |
|
10 |
$25100 |
$17570 |
Why choose Texas Solar Power?
There are incredible ways that show us that solar power is extremely important for Texas. One of the important ways is lowering energy. There is another thing that matters and it is lowering bills by drawing less energy from the grid. However, there are more of beneficial ways like saving money through solar buyback or net metering programs.
Most importantly, they help you with reimbursement for the energy that you produce. But here a question arises how can solar buybacks work? Therefore let us follow some of the insight into such a program.
What Is a Solar Buyback?
Most of the solar panels produce about 250 to 400 watts of electricity. However, when it comes to a residential system then the 20-panel system of solar is sufficient to power up a house.
But there arises a concern and it is in the form of weather conditions. Therefore, due to the production of energy during peak hours of sunlight, there can be less energy on cloudy days while there is excessive in the summer season.
More energy =Summer season
Lesser energy= Cloudy days
But, you can be fortunate enough if you make use of an energy storage system. Therefore, you can easily store excess energy when the system produces excessive energy.
Yet, another option is to get credits by selling extra energy to the power grid. So, if you are living in Texas then you can get a solar buyback program. With this method your retail electricity provider credits you with the extra energy that you generate.
Can You Get Money Back from Solar Panels?
The answer to this question follows some of the ways by which you can get money from your system. Some of these ways consist of tax credits, rebates, solar installation incentives, or incentives by local or federal governments.
Another incredible way is to be credited by selling extra energy back to the grid. However, there are conditions that determine your amount of savings. Therefore, these conditions include the amount of your electricity usage and the energy produced by solar panels.
But, if you make use of all of the solar power produced by your system then it is sorry to be said that you will not get any kind of advantage from it But, extra energy is all that you need!.
Therefore, if you have extra power then your energy company measures your solar generation and credits you accordingly.
Frequently Asked Questions
Does solar pay for itself in Texas?
It fully depends upon the duration and age of your panels. Following this question, especially for Texas, we come to know that it about 8 to 9 years for Texas to pay for itself.
How much do solar panels cost in Texas?
The answer to such a question depends upon the average price. Therefore, Texas has an average price of $3.33 per watt. But, total installed price accounts for about $29970.
Conclusion
The locality of Texas is all about the net metering or buyback plans by different retailers. It all depends upon companies and regions. However, a better insight seems clear by the help of this article. The approach by programs and regional classification clears the concepts and explains the incentives in a better manner.