Texas Solar Panels: Are They Truly Worth the Investment?
There are more and more reasons for Texas to go solar. But is it worth it? Solar offers many benefits, including lower utility bills, increased home energy efficiency, and easy upkeep, which can actually increase the home’s value. All the solar energy hype is true. It doesn’t matter where you live; investing in solar panels can be truly beneficial. So are solar panels really worth it in Texas? Let’s look at some factors that could help us answer this question.
Solar Panels in Texas – The Benefits
Texas has 235 sunshine days per year, so your solar system will not let it go to waste. So it is an enormous decision to go solar. You want to make the best choice for your family, whether you are a new Dallas homeowner or you have just purchased your dream home in San Angelo. This means you need to consider your lifestyle, budget, and other important factors for your family. If you live in Texas, here are some big reasons to boost your energy.
1. You Can Save Money on Your Electric Bills
Are you feeling blue about your electric bill? Many homeowners find that their high electricity bills are the reason they look into more energy-efficient options. Let’s look at the numbers.
The average monthly electricity bill for Texas residents is about 20% higher than the national average. A Texas resident’s average monthly electricity bill is $128. The trend of increasing electricity bills is not slowing down.
Strangely, Texas electricity rates are almost 8% lower than the average U.S. rate of 10.98C//kWh. Despite having an electricity rate at the lower end of the spectrum, it seems that Texans are consuming more energy. A solar alternative may be the answer. Every home that makes the switch can cut its electricity bill by $2,000.
2. Solar Is a Clean, Renewable Energy That Fuels the Economy
According to the U.S. Energy Information Administration, Texas is the country’s largest emitter of carbon – almost double those of California. It’s not surprising as Texas is a big state with a large economy and population. Fortunately, Texas has great potential for change, which is good news.
Clean solar energy is good for the environment and your wallet. It’s also good for the economy. Texas Advance Energy reports that there are more than 250,000 jobs in Texas for renewable energy. This number is steadily increasing. Texas’ solar energy sector is growing, particularly since they are ranked #2 for solar. Every home important for solar energy to be a major source of energy. Because of that, your home could be the source of clean energy you need to reduce your carbon footprint.
3. Protect Your Home From Outages
We all know what it is like to experience a power cut. Luckily, power outages can be avoided in today’s age. Solar energy could be the answer you have been looking for if power outage protection is something you value.
You don’t have the same uncertainty and weather disasters as everyone else when you have solar energy in your house. You’ll be protected from the unstable Texas power grid if you invest in a solar system.
Any good thing can be damaged by a power outage. Solar is a great option because you can keep connected with a high-powered battery like the Tesla Powerwall or EnphaseIQ™. You can get your solar system running again and gain energy independence.
4. Big Texas Rebates and Tax Credits
Are Texas solar panels worth it? Let’s start with your bank account. Solar is a gift that keeps on giving. Going solar is a cost-effective choice for homeowners who are looking to make a sound financial investment.
Federal Tax Credit
You can save tons of money on a federal scale. All you have to do is look for them. The federal government offers a significant incentive for residential solar system installations. The solar federal tax credit, also known as the investment tax credit (ITC), allows you to deduct up to 26% of the cost of installing your solar power systems. The credit will decrease to 22% after 2022.
What Is the Cost of Solar Panels in Texas?
The cost of solar panels in Texas is currently $2.72 per watt.
This means that you will usually pay $1,360 for a 500-watt panel. If you consider that the average household requires a 10.5kWp* installation, then you will typically pay $28,560 for a system of solar panels.
According to the Solar Energy Industries Association, the price of solar energy in Texas has fallen 53% in the last 10 years. For that price, you can expect to get 21 solar panels. On average, these panels will generate 13,519 kWh per year, which is more than the 13,128 kWh the average Texas house uses.
How Much Can I Save With Solar Panels in Texas?
Installing solar panels can help the average household save $958 per year. These savings are based solely on the energy generated by your solar installation, and it doesn’t even take into account potential additional savings from government grants, tax exemptions, rebates, or buyback schemes.
Texas benefits from ample sunshine, making solar panels a great investment. In fact, Texas is in constant competition with California to lead the nation in solar power generation.
Texans use electricity for home heating 50% more than the average American, making it even more advantageous to utilize a fuel source that becomes free once the initial cost of installation is paid.
What Is the Return on Investment for Solar Panels in Texas
Installing solar panels in Texas can reduce your electricity bill by 51%.
Without any grants, solar panels will break even after 29.8 years. However, during those years, you can enjoy the benefits of free solar energy. By accessing grants, you can increase your savings and reduce the payback period.
One way to reduce the installation cost is by taking advantage of the 30% grants provided by the federal government. With these grants, the breakeven point can be reduced to just 20.9 years.
Additionally, depending on your location, you may be eligible for generous grants from your local government. For instance, the average Austin Energy customer who installs solar panels can break even after 10.2 years.
Furthermore, residing in the western part of the state can lead to even more savings. The proximity to New Mexico allows for increased solar power production and a greater return on investment.
Is There a Government Grant for Solar Panels in Texas
If you’re considering installing solar panels in Texas, it is highly recommended to explore and take advantage of all the available government grants. These grants can come from both federal and local sources, providing financial incentives and support for your solar panel installation.
The federal government offers various grants and programs aimed at promoting renewable energy, including solar power. One notable program is the federal investment tax credit (ITC), which allows homeowners to claim a tax credit of a percentage of their solar installation costs. Currently, the ITC offers a 26% tax credit, but it’s essential to check for any updates or changes in the available incentives.
In addition to federal grants, many local governments and utility companies in Texas also offer their own solar incentives. These programs can include cash rebates, performance-based incentives, or low-interest loans specifically designed to encourage solar adoption. The availability and terms of these grants can vary depending on your location within Texas, so it’s worth researching and contacting your local government or utility provider for detailed information.
By taking advantage of these government grants, you can significantly reduce the upfront cost of your solar panel installation, making it a more affordable and attractive option for homeowners in Texas. Furthermore, the financial benefits extend beyond the initial savings, as solar panels help reduce your electricity bills in the long run and contribute to a cleaner, more sustainable energy future.
Local Government Grants
First, there are many grants available from the local government.
Any homeowner in Texas who has a solar installation can access the Solar Energy System Property Tax Exemption. This exemption allows you to reduce your property tax by the value of the solar system added to your home.
Austin Energy offers a $2,500 rebate to homeowners in Austin. Additionally, homeowners can sell any surplus solar energy at a rate of 9.7C/kWh. To qualify for these benefits, you need to complete a short course on solar energy and obtain certification for rooftop solar.
Oncor also provides incentives for residents interested in purchasing solar systems.
Several companies, including CoServ, Chariot Energy, and Energy Texas, are willing to buy any excess solar power generated by your panels. This option is preferable to sending the excess energy back to the grid.
Make sure to check if any local energy cooperatives offer solar buyback or grant programs.
You can also save thousands of dollars by applying for federal grants.
The Residential Renewable Energy Tax Credit (RREC) can reduce the cost of solar installations by up to 30%.
This program is also referred to as the Clean Energy Credit and Investment Tax Credit. If you purchase a solar system for $30,000, you can save $9,000 in taxes.
It’s worth noting that solar installations can include batteries and are not limited to your primary residence. The only requirement is that the system must be brand new and owned by you.
When purchasing a house, you have the option to include the cost of solar panels in your mortgage.
To access this opportunity, you can utilize the Federal Housing Administration (FHA) program if you intend to buy or refinance your home with solar panels.
If you meet the qualifications for the initial mortgage, you will only need to pay off the original loan amount. This allows you to finance the solar panels along with your home purchase or refinance.
How Many Texas Homes Have Solar Panels?
In Texas, approximately 200,000 homes are currently equipped with solar panels.
The residential solar market in the state has been experiencing rapid growth, with a significant increase in new installations over the past five years. The majority of solar energy in Texas is generated by solar farms, which have the capacity to power around 1.96 million homes.
Furthermore, the solar industry in Texas supports over 10,300 jobs, and this number is steadily growing.
Final Thoughts – Are Solar Panels Worth it in Texas?
In Texas, the simple answer to this question is “Yes,” solar panels are worthwhile. It’s a smart investment because of the high level of sunlight, the wide range of affordable incentives, and the use of clean, sustainable energy. Solar panels are both good for the environment as well as for your budget.
It’s important to note that the decision to install solar panels should be based on various factors, such as the cost of installation, available incentives, your energy consumption, and the condition of your roof. Consulting with a reputable solar installer or conducting a feasibility study can help you determine the viability and potential savings of solar power for your specific situation.
Switch to Solar in Texas With ESD Solar
ESD Solar will help you reap the benefits of installing solar panels in San Antonio TX. Solar energy is our specialty and we will help you with Texas Solar Energy Incentives and choose the best option for your solar panel installation in Texas.
Call us today for more information about Texas solar energy incentives and how to get solar installed by our highly trained installers. We will help you determine if solar panels are right for your home and how to incorporate them into your roof design. ESD Solar will provide the best solar panels for your home, in Florida, Texas, and Colorado.