Georgetown homeowners interested in switching to solar power should be aware of all the financial benefits available to them. Multiple government solar incentives bring down the upfront costs of going solar sharply, making it more profitable to own a residential solar power system.
What solar incentives are available to Georgetown, Texas, homeowners? Let’s find out.
Solar Investment Tax Credit (ITC)
This federal tax credit slashes the tax liability of a homeowner depending on the investment they make into a solar power project. The government has recently extended the tax credit till 2032. This means that all homeowners who install a solar power system will get an investment tax credit of up to 30% of the total cost of the solar project.
For instance, if a solar project costs $10,000, the homeowner can claim a federal tax credit of $3,000. Homeowners who borrow a solar loan to finance their solar system are also eligible for the solar investment tax credit.
Renewable Energy Systems Property Tax Exemption
This is one of the most incredible solar incentives offered by the state of Texas to homeowners who install solar power systems. Although adding a home solar system increases a property’s value, homeowners are exempted from paying property tax on the appreciated price. They can continue to pay tax on the property sans the solar system. The estimated savings from the exemption varies depending on the property’s value and base taxes.
The tax exemption is applied by the state taxation department automatically.
As per this billing policy, the excess power produced by your solar power system is used to offset your future bills. You either have to apply for net metering, or it applies automatically, depending on who your utility provider is. The dollar amount saved using net metering depends on how much excess power your solar system produces and the rate per unit of electricity paid under your solar buyback program.
In regulated regions in Texas, all incentives are offered by the utility companies operating in that region. In unregulated regions, the incentives can be provided by other entities as well. There are many other incentives provided by local entities in Texas. Depending on the entity offering the incentive, the savings vary.
Making the Most Out of the Sunshine
Texas residents have enormous energy needs and enjoy tons of bright sunny days. Solar power is the perfect bridge that connects their resource to their demand. The solar incentives offered by federal governments, state governments, and local entities help accelerate the adoption of solar in Texas.