The Cost of Solar Panels In Texas

So we can see that solar panels are indeed worth it in Texas, but only if they're affordable. So how much are solar panels in Texas? The good news is they are more affordable than other states as well. The cost of solar panels in Texas has reduced by over 50% in the last 10 years.

There are many factors to consider when looking a the total cost of a solar power system. The first things to consider is that Solar energy systems are a true investment. An investment in a home solar system will return 100% of its costs in an average of 10-13 years. But in Texas, solar owners have recouped their investment in less than 10 years in many situations. One way to increase your rate of return is selling the excess energy your solar panels produce via solar buyback programs.

The average cost of a solar energy system in Texas is between $10,000-$15,000 total investment. But there are many ways to reduce the upfront costs and increase the money you get back for your investment with Texas solar rebates and Texas solar panel incentives.

The Federal Solar Tax Credit

The largest and most popular of all the Texas solar incentives is The Federal Solar Investment Tax Credit or Solar ITC. Our federal government provides a 30% tax credit for residential and commercial solar installations. The tax credit is 30% of the cost of your solar equipment and installation, with no maximum limit. This is one of the biggest potential tax credits available to tax payers. This incentive is available for all Texas residents who invest in a solar energy system with authorized solar companies.

Texas Solar Tax Exemptions

One of the top ways Texas incentives and discounts solar panels is through tax breaks. Solar panels are exempt from sales tax and increased property taxes.

Solar Property Tax Exemption is a huge benefit for solar owners. This allows for home and business owners to enjoy the benefits of increased property value with their new solar array, but not have to pay the additional taxes that would usually apply. So, the owner of a home assessed at $300,000 who adds $15,000 worth of solar panels, will now have a new property value of $315,000, but only pay taxes on the original $300,000. The exemption is 100% for residential properties and 50% for commercial properties, but is only available through 2029.

Solar Sales Tax Exemption is a quick savings right from the day you purchase your new solar power system. Sales Tax in Texas is 6.25%. So your instantly save more than 6% on the cost of your solar panels, which is a benefit that most states do not have. This exemption applies to the cost of your solar panels, solar inverters, mounting hardware, and solar batteries.

Texas Solar Renewable Energy Credits (REC)

Solar Renewable Energy Credits (RECs) allow residents to get paid for the excess energy produced from their renewable energy systems. Homeowners can earn these "clean energy credits" to help offset up to 100% of your energy charges on your electricity bill, every month.

This is a great way to increase your rate of return on Texas solar panels. To take advantage of this solar incentive, you will need to work with a professional solar company in Texas, such as EcoGen America, to help you find the best Texas solar buyback program for you.

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