Texas is among the top 10 sunniest and most populous states in the nation. Lots of sun plus a huge demand for electricity makes solar an ideal source of clean energy in this state. Texans can take advantage of tax exemptions and rebates to install solar panels that power their homes, schools, and businesses in an eco-friendly way. Go green (and potentially save some) with solar panels in Texas.
Texas’s Solar
Report Card
To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:
- Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
- Electricity Rates from the U.S. Energy Information Administration;
- Renewable Energy Policy from NC Clean Energy Technology Center;
- Interconnection Ease from Freeing The Grid;
- Photovoltaic Potential from the Energy Department
We determined a rank from one to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.
Incentives & Rebates, 40%
Electricity Rate, 15%
Renewable Energy Policy, 30%
Interconnection Ease, 5%
Photovoltaic Potential, 10%
What’s the Price of Electricity in Texas?
According to the U.S. Energy Information Administration, the average price of residential electricity in Texas runs at a little less than $0.12 per kWh. While this is still below the national average, each year Texas households are paying $1,801 for electricity. Texas by far produces and consumes and the most energy in the nation. In 2019, Texas generated its electricity primarily by natural gas, coal, and wind power. In fact, the state leads the country in wind-powered generation. With high prices and an open-mind toward using renewables, installing solar has the potential to save Texas residents a lot of money.
Cost of Residential Electricity
Data from U.S. Energy Information Administration
*as of Q3 2015
Texas
Solar Resource Library
Texas Solar Policies & Incentives
Texas should take full advantage of solar energy considering its vast amounts of sunshine and high electricity needs. Yet the state has been slow to implement effective policies and incentives for residents to encourage solar installation. Solar still has the potential to save consumers money thanks to the various incentive opportunities offered across the state. While there is no statewide rebate, there are an abundance of utility rebates and a 100 percent property tax exemption that can reduce thousands from the cost of a solar system.
REBATES/INCENTIVES
Cash incentives are available for owners, developers and property managers of apartments and multi-family properties who make energy efficiency improvements. Free walk-through energy surveys are required before applications will be accepted. This program is first come, first served.
Oncor Electric Delivery – Solar Photovoltaic Standard Offer ProgramRebates are available to Oncor Electric Delivery customers that install PV systems on homes or other buildings. The maximum rebate is equivalent to 20 percent of the most recent funding allocation. See description for eligibility requirements.
AEP Texas North Company – Smart Source Solar PV Rebate ProgramAmerican Electric Power Texas North Company (AEP-TNC) has rebates for customers that install PV systems on homes or other buildings. The rebates are $1.20 per watt for residential customers and $1.05 per watt for non-residential. Maximum rebates apply and a bonus incentive is available to qualifiers.
AEP Texas Central Company – Smart Source Solar PV Rebate ProgramAmerican Electric Power Texas North Company (AEP-TNC) has rebates for customers that install PV systems on homes or other buildings. The rebates are $1.05 per watt for residential customers and $1.00 per watt for non-residential. Maximum rebates apply.
Guadalupe Valley Electric Cooperative – Renewable Energy RebatesA $1 per watt rebate is available to GVEC customers who install PV systems. Qualifying systems must meet a variety of equipment, warranty, and installation requirements.
DME – Residential GreenSense Energy Efficiency Rebate ProgramDenton Municipal Electric offers residential and small commercial customers rebates for energy efficiency and emission-reducing efforts including solar PV at $0.40 to $1.20 per AC watt up to 50 percent of cost or $30,000.
Coserv Solar Energy Rebate Green Mountain Energy Renewable Rewards ProgramThe solar rebate program from Austin Energy offers up to $2,500 to eligible residential customers who install PV systems and complete a solar education course. The rebate cannot exceed 50 percent of the total invoice and will only be paid for approved systems.
City of Sunset Valley – PV Rebate ProgramThis program is an add-on to the Austin Energy PV rebates and provides $1.00 per watt (up to 3,000 watts) in rebates to local homeowners who install photovoltaic (PV) systems on their properties. The system must first qualify for an Austin Energy rebate.
Xcel Energy – Residential and Hard-to-Reach Standard Offer ProgramResidential and Hard-to-Reach customers participate in the program by first contacting a sponsor. Residential rebates are set at $358 per kW plus $115 per kWh. The Hard-to-Reach program targets customers with annual household incomes at or below 200 percent of federal poverty guidelines. Rebate amounts for this category are $420 per kW plus $0.135 per kW.
Guadalupe Valley Electric Cooperative – Residential Energy Efficiency Rebate ProgramsGuadalupe Valley Electric Cooperative offers a one dollar per watt incentive to help make homes more energy efficient. Qualifying homes must have been built by an Energy Star-certified builder, and third-party verification is required for all energy-efficient measures.
Incentives are available for service providers who install approved energy efficiency measures in business, government, nonprofit and worship facilities in Oncor’s service area.
TXU – Commercial Energy Efficiency ProgramRebates are available for business customers who sign up or renew a 12-month contract with TXU. Rebates may vary based upon energy usage.
City of Plano – Smart Energy Loan ProgramThe Smart Energy Loan (SEL) Program provides energy efficiency loans to homeowners for energy efficiency upgrades, including solar PV, with loan terms between 36 and 180 months and at interest rates between 5.49 and 16.49 percent.
TAX CREDITS
None
None for residential specifically
Texas corporations can deduct either the total cost of a solar energy device from its taxable capital or 10 percent of the system’s cost from the company’s income. Both are taxed under Texas’s franchise tax.
TAX EXEMPTIONS
Texas property code gives a 100 percent exemption of appraised property value after the installation of a solar-powered energy device.
None for residential specifically
Texas solar companies are exempt from franchise tax. There is no ceiling to the exemption.
POLICIES
Texas’s interconnection standards apply to a point of delivery at electrical generating facilities, with a maximum capacity of 10 MW. Standardized interconnection applications and interconnection agreements are used.
Renewable Generation RequirementThe Public Utility Commission (PUC) of Texas established a renewable portfolio standard (RPS) that requires the installation of 5,000 MW of new renewables in Texas by 2015 and establishes a goal for 2025 of 10,000 MW of renewable energy capacity (already achieved).
Home/Property Owners’ Associations are not allowed to stop homeowners from installing solar energy devices. However, HOAs are allowed to block installation if it poses risk to public health and safety. Learn the caveats and exceptions in the full description.
None for commercial specifically
Companies That Install Solar Panels in Texas
Texas residents are fortunate to have loads of local solar companies and installers to choose from. Find a company in your area that can help you join the solar bandwagon.
Texas Solar Power Company specializes in the design, sales and installation of solar electric equipment for residential, commercial, institutional and government customers.
Where it operatesAustin, Texas
Year of opening1995
This solar energy company says it is considered one the leading solar installers in Texas measured by the amount of capacity installed and serves the Houston area.
Where it operatesHouston, TX
Year of opening2010
This solar company designs, installs, and monitors solar systems in Central Texas.
Where it operatesHarker Heights, TX
Year of opening2012
This solar company does energy audits, and both commercial and residential solar installations.
Where it operatesCollege Station, Texas
Year of opening2010
Advanced Solar is the largest solar installer in South Texas.
Where it operatesSan Antonio, TX; Austin, TX
Year of opening2010
This company performs solar design, installation and integration services.
Where it operatesSan Antonio, TX; Austin, TX
Year of opening2009
Freedom Solar Power was the #1 Solar Contractor in Texas for 2014 according to Solar Power World Magazine.
Where it operatesAustin, TX
Year of opening2007
GreenLife Technologies, Inc. is an alternative energy system designer and installer serving Texas, Oklahoma, and Louisiana.
Where it operatesLindale, TX
Year of opening2008
This solar company designs, manages, and installs renewable energy technologies and generators.
Where it operatesLaredo, TX; San Antonio, TX
Year of opening2007
CAM Solar provides solar energy options for the residents of San Antonio, Austin, and the rest of Central Texas.
Where it operatesSan Antonio, TX
Year of opening2009
Sunrise Solar installs solar PV and solar thermal energy systems in Texas.
Where it operatesGrapevine, TX
Year of opening2000
Aztec Renewable Energy installs commercial and residential solar systems in Texas.
Where it operatesDallas, TX
Year of opening1999
HE Solar LLC is a family company working to provide high-quality solar energy systems.
Where it operatesAustin, TX
Year of opening2000
Border Solar is a licensed Electrical Contractor for the states of Texas and New Mexico offering solar integration and energy efficiency services.
Where it operatesEl Paso, TX
Year of opening2008
Brite Idea Energy is a solar energy design and installation firm located in Southern New Jersey, but also serves the state of Texas.
Where it operatesSan Antonio, TX
Year of opening2006
Texas Solar Energy Resources
Educational and interactive websites specific to the state of Texas can help you understand solar energy issues in your local community. Here are a few websites to help you become better informed.
Learn more about public utilities and about how electricity rates are regulated by the governing body of Texas.
Keep up to date with solar legislation and pending energy issues in Texas.
Find a wide variety of information on state government energy programs, policy, projects, energy-saving strategies and energy-related statistics
Learn about all the incentives and programs that the state of Texas offers.
Explore the data and statistics surrounding the usage of electricity in Texas from the U.S. government.