The largest continental state by land mass and second by population, Texas has a go big-or-go-home vibe. Texans have an independent bent in their blood.
According to the U.S. Energy Information Administration (EIA), Texas leads the nation in energy consumption, accounting for more than one-eighth of the U.S. total. The EIA reports that residents in Texas have some of the largest solar power potential in the country.
So it's only natural that Texans have been at the forefront when it comes to the solar revolution, seeking independence from skyrocketing energy prices.
Let's start with the federal incentives. The Solar Investment Tax Credit (ITC) is a federal tax credit that is a dollar for dollar reduction on income taxes. It’s a step-down plan, so now through December of 2020, the credit is 26%.
Starting the 1st of 2021, however, the credit decreases to 22%, and then to 10% for any completed commercial project in 2022 and to 0% for residential projects. The sooner you act, the more money you will save. The following expenses are also included:
- Solar PV panels or PV cells used to power an attic fan (but not the fan itself)
- Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees, balance-of-system equipment, including wiring, inverters, and mounting equipment
- Energy storage devices that are charged exclusively by the associated solar PV panels, even if the storage is placed in service in a subsequent tax year to when the solar energy system is installed (however, the energy storage devices are still subject to the installation date requirements)
- Sales taxes on eligible expenses
The state of Texas does not offer a statewide solar tax credit, but most local utilities do offer incentives to go solar, add battery backup, or to make home improvements related to energy efficiency (check this website for detailed information).
The structure and availability of rebates vary across the state, but most utilities offer rebates to homeowners and business owners on a price-per-watt basis that is capped at a maximum amount per project. The funds may be available in perpetuity or released on a periodic (e.g. annual) basis for residential and/or commercial solar installations.
The utilities have an application process for each project, which NuWatt Energy will manage for you.