Local utilities , the federal government, and the state government want you to go solar! Here are the incentives they are offering to help you make the investment:
Federal Tax Credit:
The federal solar tax credit was created to support the growth of the solar energy market. Below is general information on the federal tax credit so you can use it to your benefit!
- Incentive type – Personal tax credit and commercial investment credit
- Eligible technology – Photovoltaic
- Applicable sectors – Residential Federal Tax Credit – Commercial Federal Tax Credit
- Amount – 30% of the cost for installation. No Cap!
Example: If the total cost of your solar installation is $25,000 , the solar tax credit would allow for $7,500 be deducted off the customers tax liability. The tax credit can be applied to multiple years if it exceeds the consumers owed taxes.
How to Claim the Solar Federal Tax Credit
Use the IRS Form 5695 & Instructions: Residential Energy Credits
Solar-electric systems placed in service after 12/31/2008: no maximum
Tax Credit Expiration
The tax credit will begin ramping down after 2019, so take advantage of this great incentive while it’s available!
Contact your CPA for more information on Solar Federal Tax Credit eligibility!
Why Some Utility Companies Offer Rebates:
Texas solar rebate programs have become available from electric utility companies that need a cost effective way to solve peak demand loads. Texas’ rapidly growing population directly effects our energy demand. Solar power has become a wise investment for home owners and electric utilities. Here is why:
- Most cost effective power sources (Nuclear, Wind, Hydro Electric) create constant and dependable power. However, our energy consumption is not constant.
- Texas energy demand can change rapidly due to extreme heat during the summers and unexpected cold fronts in the winter. This load is created by HVAC systems conditioning homes and businesses.
- The traditional way to supplement these high demands was to use Generators that are only utilized during these high demands. It turns out that solar produces during these high summer demands as well.
- Solar power also benefits from being extremely dependable and maintenance free.
Central Texas Solar Rebate List:
The federal tax credit is enough for most people to justify installing solar power. A local Texas solar rebate can make solar even more enticing. Central Texas solar rebates are available from the utilities below:
- Austin Energy Rebate – Austin Energy provides a solar photovoltaic (solar power) rebate for customers that meet their requirements which can be found on their website. In general, they require a roof with a good East – South – West exposure. Energy audits are required on homes older than 10 years.
- Oncor Rebate – Oncor provides a generous solar rebate. Users may need to change their sponsored oncor provider in order to distribute solar generation.
- San Marcos Power Rebate – San Marcos power serves portions of San Marcos and offers a rebate for solar photovoltaic.
- GVEC Utility Rebate – GVEC customer can take advantage of a solar power rebate.
- CPS Rebate – CPS solar rebate serves the greater San Antonio area and helps make solar power affordable.
Live outside central Texas? More Texas solar rebate programs can be found on the database for state incentives.
Property Tax Exemptions
The State of Texas exempts the added value of solar from property taxes. This is good news considering that studies show solar will increase your home’s value significantly.