Solar energy systems have been gaining popularity in Texas due to various incentives and rebates provided by both the federal and state governments. These incentives and rebates make installing solar energy systems more affordable and economical, while also contributing towards a cleaner and greener planet!
One of the most significant incentives for installing a solar energy system is the Federal Solar Tax Credit. The Inflation Reduction Act of 2022 has made this credit a permanent 30% reduction in the cost of installing a solar energy system on a residential or commercial property, with 2 additional 10% incentives available for commercial property owners. This means that if the total cost of installation is $30,000, the property owner will receive a tax credit of $9,000. However, this tax credit gradually decreases to 26% in 2023, 22% in 2024, and finally expires on December 31, 2024. Therefore, homeowners and business owners interested in taking advantage of the maximum credit must act quickly.
In addition to the Federal Solar Tax Credit, Texas offers additional incentives such as property tax exemptions and sales tax exemptions. Texas has a property tax exemption on 100% of the appraised value of the solar energy system for residential properties. This means that a residential homeowner won’t have to pay any additional property tax for installing a solar energy system. Similarly, sales tax exemptions are available for purchasing and installing solar energy systems on a residential property.
Apart from these incentives, solar energy systems can also save homeowners and business owners money on their electric bills. Texas has extremely high temperatures during the summer months, and air conditioning often contributes significantly to electricity bills. However, solar energy systems produce energy during peak daylight hours, which is generally when energy usage is the highest. This means that if the solar energy system produces more energy than required by the homeowner, it can be sold back to the power grid for a credit.
Texas homeowners and business owners can benefit greatly from installing solar energy systems due to various rebates, incentives, and savings provided by the federal and state governments. Furthermore, with the permanent 30% tax credit for installing solar energy systems, it has become easier than ever to invest in solar energy in Texas. It is a win-win solution for those seeking to save money on their electricity bills and contribute towards a cleaner environment.
