STATE LEGISLATION

Since 1999 the state has done well promoting wind energy, but hasn’t made much progress on solar energy. The Texas legislature considered some important legislation on solar energy programs in 2007, but the bill suffered defeat as a byproduct of partisan politics. Because the legislature works on a 2-year schedule, this means that solar power won’t get considered in Texas again until 2009.

NET-METERING

Texas has very few options for net-metering (profiting from selling your solar energy back to your utility). As a solar user, you are only guaranteed access to net metering when if your utility is investor owned (See below for a list of Texas investor-owned utilities). If your utility is investor-owned, they must credit you at full retail value up to the amount of energy used at your home. You are then credited at the wholesale value for any net excess power you generate. Energy co-ops, on the other hand, are not required to offer you interconnection (i.e. permitting you to connect your solar panels to the grid) and net-metering. As a result, each co-op has its own policy (See the list below for electrical co-ops).

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

Incentives and rebates for solar in Texas are offered primarily through your power company. For example, Austin Energy offers a reasonable rebate program for solar photovoltaic installation. For residential customers, the rebate is $4.50/watt installed (or $5.60/watt if you use a local Austin installer) up to 80% of the cost or $13,500 (whichever is less). The average system can be installed in Texas for about $9.00/watt.

TEXAS ELECTRICAL CO-OPS - those offering solar incentives/rebates are linked

Austin Energy
Bryan Texas Utilities
College Station Utilities
CPS Energy
Denton Municipal Electric
Farmers Electric
Garland Power & Light
Guadalupe Valley Electric Coop
Magic Valley Electric
Pedernales Electric Cooperative
Tri-County Electric Cooperative
United Cooperative Services

TEXAS INVESTOR-OWNED UTILITIES - those offering solar incentives/rebates are linked

American Electric Power
Centerpoint Energy
Entergy Texas
Oncor Electric Delivery
Texas Gas Service
Texas-New Mexico Power Company
Xcel Energy

EXAMPLE 3kW SYSTEM HOME INSTALL IN AUSTIN TEXAS

So, if you were to install a 3 kW system that would be about $27,000 ($9.00/Watt x 3,000 Watts). In this example you’d be in line to receive the maximum incentive of $13,500. The Fed offers a 30% incentive in the form of a tax credit with no cap. Assuming you have the tax liability, you’re in line to deduct another $8,100 (30% x $27,000). Now, you’re at a net cost after year 1 of $5,400. This is a lot more palatable. Just think, this energy upgrade is also property tax exempt and you’ll realize an immediate property value increase of 20 times your annual electricity bill savings. In this example, a 3kW system will increase your property value by about $9,600 ($40/mo savings x 12 = $480; $480 x 20 years = $9,600).

SOLAR INCENTIVES, REBATES, AND TAX CREDITS FOR TEXAS BUSINESSES:

Corporate Deduction: Solar and Wind Energy Device Franchise Tax Deduction

Industry Recruitment/Support: Solar and Wind Energy Business Franchise Tax Exemption

Property Tax Exemption: Renewable Energy Systems Property Tax Exemption

CONSENSUS

While Texas has done well with wind energy, now generating 2,700MW, the legislature has been pretty ineffective when it comes to solar energy. By deregulating the energy market, the legislature has left it up to individual power companies to come up with solar initiatives. With so much sun falling on the Lone Star State, legislators need to get on the ball and set some rules to encourage solar power generation at all those wayward power companies that have not yet started their own programs.