Texas Solar
Texas Solar
Solar energy is booming! The cost has gone down and new ownership models have allowed more people to choose solar as their power source. Solar is now available in all 50 states, territories, and the District of Columbia.
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Going solar is a big decision. By knowing the basics of solar energy, as well as your solar options, and what to ask solar professionals, you're all set up to make the right decisions.
How Solar Works
Solar panels are made from solar cells, which are durable silicon solar cells sandwiched between protective sheets of glass. The solar cells convert solar energy into electrical power using a semiconductor to create an electron-hole pair in the materials of the silicon. This solar power is then sent to a solar inverter where the electricity can be used in your home.
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Today, most homeowners choose photovoltaic (“PV”) – or solar electric – systems for their homes because they offer so many wonderful benefits that make life easier. Residential PV offers clean electricity at no cost with nothing more than sunlight; it is also easy on our environment as well as bank account since there will be no monthly bills anymore!
Your Home Solar Options
Today, most Americans have a variety of options for going solar. Some examples are installing solar panels on your home yourself or through leasing for homeowners who do not want to make any large investments in their homes and then there is also the option of putting up utility-scale solar arrays that can be shared by all of the residents in an area. When it comes to electricity, there are a lot of different options available.
To help you make the best choice, it's important to understand all the different customer service plans. Under state law, the differences between electric utility policies and your personal preferences, you should choose the plan that best suits your needs.
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Solar energy is the newest way to lower your electricity bill. Here are three of the most popular options, explained in more detail below:
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Purchase a solar system (with cash or a loan) and own both the system and all the power it produces
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Lease a system, usually for a monthly rate, and own all the power it produces
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Enter a “power purchase agreement” (PPA) to buy (in price per kWh) the electricity the system produces
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Purchase
You're going solar! When you buy a system, you become the owner of the system and enjoy all the benefits from the electricity it produces. The cost of upkeep varies depending on your provider, but most residential solar systems require little to no maintenance, and some providers offer maintenance services on purchased systems.
Solar panels can be an expensive initial investment, but they are also an investment in the future. Solar panels can lower your utility bills and reduce environment-damaging emissions. And, in most jurisdictions, you can benefit from tax credits or other incentives that promote solar energy. If you do decide to sell your home, you may list the solar power system in the sale just like any other major home component.
Lease
In many markets, you can lease a solar system for a set time period. The solar company owns the system, leases it to you, and is responsible for maintaining it. You make monthly payments to the solar company at a specified rate for use of the system.
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Some solar vendors will allow you to get installation and equipment leasing at no up-front cost (“no money down”), though this doesn't mean the system is free. Some companies also offer customers a financing option that allows them to purchase the system after a specific timeframe. A third-party-owned system means the company that installed your solar panels owns them and you will enter into a power purchase or leasing agreement with the company in order to use the solar energy to offset your electricity cost. Make sure you ask questions about whether these agreements are transferable if you plan on selling your home in the future.
Power Purchase Agreement (PPA)
From a consumer’s perspective, a power purchase agreement (PPA) is very similar to a 30-year lease contract. Under the terms of the PPA, you pay for the units of electricity generated by your new solar system rather than leasing the entire system and paying an up-front fee regardless of how much energy it actually generates. A PPA is a contract between you and the company that owns the solar panels. The benefits to a PPA are similar to those of going solar under a lease agreement: no equipment costs, which reduces your upfront investment in the system and lowers or eliminates your monthly electricity bills. A power purchase agreement, or P.P.A., is also a third-party ownership arrangement because the solar company owns the system; however, some companies give you the option to buy back the system after a certain period of time has passed. You’ve got options for when you sell your home, so make sure to ask about PPA fees at the time of installation.
Details of Texas Solar Incentives
Federal Solar Investment Tax Credit (ITC)
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Buy and install new rooftop panels in Texas in 2021, with or without a home battery, and qualify for the 26% federal tax credit. The residential ITC drops to 22% in 2023 and ends in 2024.6
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Approximate average-sized 5-kilowatt (kW) system cost in TX: $13,109
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Approximate system cost in TX after the 26% ITC in 2021: $9,70113
Rebate Programs
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Austin Energy: If you live in Austin, you can get a rebate of $2,500. Plus, you’re eligible for Austin Energy’s Value of Solar Tariff, which pays you $0.097 for every kilowatt-hour (kWh) your solar panels can generate.
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CPS Energy: If you’re a CPS Energy customer, you can receive up to $1.20/W of solar panels that you install on your roof. Like Austin Energy, the value of the incentive drops as more solar is installed, so now’s the time to go solar if you are in the CPS Energy service area.
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Guadalupe Valley Electric Cooperative and the City of Sunset Valley all also offer rebates for homeowners in their areas.
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Get your system size and battery details
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Find your solar cost and energy usage
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Learn about the incentives in your state
Helping customers make solar simple!
Get the most out of your new home solar system
Switch to solar power and start saving money right away
There are many benefits to switching over to solar energy including lower monthly bills, improved property value, and cleaner air. The solar panels in Texas can help you live a more sustainable lifestyle while also lowering your carbon footprint by displacing emissions that would have been created from traditional power plants. Solar is an investment with the potential for significant returns on investment, so solar panels are quickly becoming a more affordable way to generate power!
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You may want solar installation costs depending upon your area--read more about that below--and you'll want to ask solar experts about solar panel efficiency so that you know how much power each solar cell produces and what the solar cells are made of.
For those looking to reduce their environmental footprint, solar installation is becoming more affordable with the help of government incentives and rebates. There are around 20 different types of tax credits for investments in renewable energy or any infrastructure project that directly reduces greenhouse gas emissions (such as wind farms). These tax benefits can be used by both individuals and corporations alike while also helping defer some upfront costs associated with installing a system such as labor expenses or expensive panels themselves.
For example, an individual might have difficulty paying $25K upfront on equipment worth $32K but they may qualify for a 30% federal investment credit which would lower the amount down to just under $21k! The Solar Energy Industry Association estimates that about half of all new homes will use this solar energy by 2022, so solar installation is becoming an increasingly popular option to go green!
