In the past 10 years, the cost of a residential solar power installation has dramatically decreased. It has gone down from over $50,000 to $20,650 on average. There are a multitude of factors that affect the cost of a solar installation, which includes the state you live in. The average cost of solar power for Michigan homeowners is $3.78/watt. On the other hand, Texan homeowners only pay around $3.00/watt. It is interesting to note that the average price of solar power installation in the United States is $3.00/watt. Texas is comfortably sitting at the national average.
Solar rebates are encouraging homeowners to opt for solar power for less. Here is everything you need to know about the solar rebates helping Austin, Texas residents to go solar.
Renewable Energy Systems Property Tax Exemption
The Renewable Energy Systems Tax Exemption was the first solar-friendly policy in Texas and was implemented in 1981. The policy has ensured homeowners do not pay excess property tax due to their solar power installations.
Another solar-friendly legislation residents of Austin, Texas, will appreciate is Solar Rights. Under this policy, solar energy use is deemed a property right. The legislation ensures that people who use solar energy get proper sunlight, which protects them from any objections placed by the homeowners’ association (HOA). While this does not provide any financial assistance, it does help the homeowner to install solar panels in Austin, TX without any worries.
Rebates Offered By Utility Companies
Texans have enjoyed many rebates from their utility providers since the late 2000s. Both big and small utility players offer many incentives to their customers. Austin Energy offers its customers a significant $2,500 rebate as and when they install solar power systems in their homes. CPS Energy, another major utility player in Austin, offers a $1.2/W rebate. Another utility company in Austin, TX, is Oncor, which provides its consumers with a $0.54/W rebate. On the first year alone, these incentives add up to savings of hundreds if not thousands of dollars.
Programs in place of Net Metering
Even without a state-wide net metering program, Austin, Texas, residents have been enjoying the returns of installing a solar system. Instead of net metering, the utility companies offer a “feed-in tariff” reward. For instance, Austin Energy started offering its customers $0.97 per kWh for solar power generation as early as 2004. Green Mountain Energy’s Renewable Rewards Program offers compensation that almost matches the rate of traditional electricity to its customers who generate solar power.
Federal Solar Investment Tax Credits
Besides the local tax benefits, Texans also have access to the Federal Solar Investment Tax Credit (ITC). Under ITC, homeowners can claim a tax credit for the solar energy systems installed during a financial year.
A homeowner in Austin, TX, can claim a tax credit up to 30% of the solar installation cost. Solar homeowners can use this benefit to recover a significant amount of their initial investment in a solar power installation.
If you want to optimize your solar installation cost, then Green Power Energy can help. We can help you maneuver all the rebates, credits, and rewards available to help you reduce your cost of installation and future maintenance.
