Texas Is Loaded With Solar Energy Incentives!
Austin Energy Rebates
Austin Energy, offers a $500 per kilowatt (kW) incentive for homeowners interested in installing residential solar panels. The Austin Energy rebates are available for up to 10 kW of photovoltaics (which far exceeds the average residential system size). That means you can save up to $5,000! Let us guide you through the paperwork and make your application process as easy as possible! The Austin Energy rebate can be used in conjunction with the federal solar Investment Tax Credit valued at 30% of your installation cost. Most eligible homeowners save nearly half the cost of their new system by taking advantage of these two incredible incentives. Don’t delay! Local and Federal incentives won’t be here forever!
Austin Energy Value of Solar Program (VOS)
When you connect your new solar panels to the Austin Energy grid, you are automatically enrolled in the Value of Solar Program (VOS). After enrollment in VOS you receive a credit for each kilowatt-hour (kWh) of energy produced by your system. Each statement period you will be charged the full amount for the electricity you utilize, however you will also be credited the VOS rate for any energy produced. For example, if you consume 1,000 kWh of energy in a month and your solar power system produces 800 kWh, you will be billed for 1,000 and credited for 800. The result is a large reduction in the amount billed. Another huge benefit – the Value of Solar rate is determined by factors such as the ‘greenness’ of solar energy and the overall benefit to a utility. This makes the energy your system produces even more valuable! As of January 2016, the Vos rate is set at $0.106/kWh. The VoS is recalculated annually.
Pedernales Electric Company Incentives
After connecting your qualifying solar power system to the PEC electrical grid, you automatically become part of their net metering program. If your system produces surplus electricity, you’ll receive an energy credit for later use. You can take advantage of this credit on a cloudy day when your system is not producing at 100% capacity. Should your system produce more electricity than you consume for a given billing period, the difference is credited to you.
Federal Tax Credit
There has never been a better time to go solar! The federal solar Investment Tax Credit (ITC) reimburses 30% of your solar power installation cost. The tax credit includes costs associated with: panels and components, labor, and selected energy storage devices (batteries). The growth experienced by the solar industry is directly related to previous and current government incentives. The ITC has increased the number of business and residential solar installations by 1,600% in the U.S. since its inception nearly ten years ago.
Congress extended the ITC through 2021, with the credit decreasing over time. The full credit of 30% is available through December 31, 2019. In 2020 the ITC will begin decrease to 26% and by 2021 the ITC will be 22%. The time to act is now!
Solar Investment Tax Credit Eligibility Requirements
- Your system must be owned outright. The ITC is not available to those who are leasing their system or using a PPA.
- Your system must be installed in the United States and owned by a U.S. taxpayer.
- Solar panels must be brand new. Refurbished and second-hand panels are not covered under the ITC.
- The ITC cannot be applied to solar powered pool heaters.
- The ITC can be partially or fully claimed for up to 5 years after installation.