Texas Solar Power Rebates, Tax Credits, and Incentives

gary

Need to know how is the rebate available for houston texas

John

How do i contact the PG&E Solar division about employment?

David Llorens

I’d have to say check PG&E’s website? http://www.pge.com. Honestly, sorry but no help here

Kathy

Does Fort Worth offer similar options and is solar recommended for this region?

Steve Krivan

In Texas, Austin Energy and CPS Energy in San Antonio offer Solar PV Rebates. They are good ones and make it easier and quicker to pay your system off. See http://www.mehrsolar.com/lonestar for more information. Also write your state reps and State Senator. Ask for a State Rebate for Solar PV Systems like NY, NJ, CA and CO. These states offer excellent state rebates. Not Texas, Yet!

Randal Vidal

why doesn’t GVEC have a rebate on solar electric or hot water installs and why does it not buy the available electric from owners who produce electric and why isn’t there any low interest loans to get the jobs done

TGR

How well would Solar panels hold up in the horrible hail we get here in Texas?
I was considering solar but your information has discouraged me from doing it here. I have Co-op elec & they dont have any poiliy to buy solar from me if I did put it in.

EJ Barron

It appears as if Texas wants to keep us energy dependent on companies which contribute to global warming and increase the air pollution. Coal energy and petroleum based generation plants to our detriment. I could not find out why other states are more forward-thinking than Texas. I thought we were leaders not backward thinking! Given the problems with Enron I’m shouldn’t be surprised…makes me sad to be native Texan.

GDI

I wonder what the pay back period is for a typical residential installation?

Steve Krivan

Gary, For Houston there is a state commercial 10% Deduction from profits and/or 100% Deducted from capitol. This is off of Texas Franchise taxes. The Federal Govt offers 30% Tax Credit.
Residence only get the 20% Federal in Houston. No Utility Cos offer a rebate in Texas except Austin Energy and CPS in San Antonio, which are Municipal Utilities. See my website for all the details on Solar Panels in Texas, Solar Systems in Texas and Solar Rebates and Tax incentives for Solar in Texas. http://www.mehrsolar.com/lonestar. or http://lonestar.mehrsolar.com

Rose

Why is it the capitol city has the best incentives? Why can’t the rest of the state share in the benefits? We it across the country and world. Help us all get in on saving the world for the future generations!

Jim

Is there a convenient way to find what the solar rebate would be on a 5KW system installed in Laredo, Texas?

Julie

When thinking about pay-back periods, you also need to consider the convenience of not losing electric power. I have a friend in Houston with a system and he’s one of the few people who didn’t lose power as a result of Hurricane Ike.

I’ve come home to find my neighbors all standing in the street, talking about not having electricity. One neighbor was locked out of her house because her garage door opener didn’t work. If the outage had lasted longer, they’d have been having dinner at my house as I was the only person on the block with electricity for about two hours.

As the electric grid in Texas gets stretched thinner and thinner, solar power for backup electricity will start to make good financial sense, even without utility rebates.

David Llorens

Hi Julie. If your system is grid-tied, it will go down if the grid goes down. Off-grid systems are more expensive but can be necessary in areas where dropping a new power line can be cost – prohibitive, or you just REALLY NEED to be off the grid for some reason.

the most cost effective solution is usually to get a grid tied system, and then if power outages worry you, just purchase a generator for $500.

Cheers,
Dave

Brandy

If installation for a small 1000 package with Houston Renewable Energy is 12,000 dollars and the rebate is only 2,000 dollars per home installation for a one time incentive that expires in December how am I saving money? I’m worried that if I had to finance the installation I would wind up paying more than my electricity bill. I’m really interested in solar energy, but at the moment I’m not sure if it is cost effective for me.

Dan Hahn

Hi Brandy,

The best way to determine if solar is worth it for you is to get an evaluation and an estimate from a licensed contractor. An easy way to do that is to click the link at the top of the page.

Keep in mind, your home value will immediately increase by 20x your annual electricity savings once you connect your solar panels to the electricity grid. As the cost of electricity continues to rise, so does your property value. Added bonus = your property value increase is tax exempt.

When you say “small 1000 package” what are you referring to?

Cheers,

Dan

Mark V

Yes, Brandy, Dan is correct. You can recieve INSTANT increase in the value of your property with a Solar System(PV-electric). For the full value of your cost. Its a great way to hedge on the increasing cost of fuel/electric prices. Depending on the size of your home, Solar system, power usage and energy efficency level. It can take as long as 25 years or as short as 5 years to recoup your costs. BUT as of next week JAN 1 2009. We will be able to take a federal tax credit of 30% with out the $2000 limit. So a 3000 watt solar system ($30,000)- $9000=21,000 will produce about $3000 of electricity …not too bad. And its the right thing to do. http://WWW.SolarDesignandConstruction.net

JR

Compiled Q&A thus far:
Q Gary: What rebates target Houston?
A JR: 30% Federal rebate

Q John: How do i contact the PG&E Solar division about employment?
A David: http://www.pge.com

Q Kathy: What rebates target Fort Worth?
A JR: Encore is offering a ~$2.40/Watt rebate in 2009

Q TGR: How well do panels hold up horrible Texas hail?
A JR: Solar panels are rated to take 1” hail at 95 mph. They protect your roof.

Q QDI: What is the payback period?
A JR: Green City Solar LLC (www.greencityaustin.com) offers an instant payback financial model in most Texas rebate markets. In federal incentive only markets, payback is 25-30 years.

Q Rose: Why does Austin have the best incentive?
A JR: Austin Energy is a publically owned cooperative with an overcapacity demand. Residents successfully lobbied AE to introduce a solar incentive program instead of building a new utility plant, after a professional study argued the cost, national security, and environmental impacts justified the program. This leadership has attracted a large scale solar manufacturing plant (Heliovolt) to add jobs to the local economy.

Q Jim: What rebates target Laredo?
Q Julie: Also remomber the cost benefit of solar as back-up power.
A David: If your system is grid-tied, it will go down if the grid goes down.
A JR: If your system is grid-tied, add a battery back-up system to prevent power outages.

Q Brandy: I live in Houston. How am I saving money?
A JR: You aren’t. In terms of cold, hard cash flow in non-rebate markets, it takes 25-30 years to justify system ownership. Wait until mid-2010 to buy a system, prices will dramatically drop. *NOTE* rebate customers should NOT wait for the price drop as the rebates will go away and they will end up paying MORE.

Feel free to email jcromer@greencityaustin.com with additional questions.

Dan Hahn

JR,

Thanks for your local Austin expertise! We’re sure all our readers appreciate it.

Cindy

We are starting a company that installs solar for pool heating in Dallas. I am wondering if there is any legislature yet that prohibits homeowner associations from denying a homeowner the right to install the panels on roof?

bryan

its about time for everyone to get smart on energy and the monopolies wont turn this over to the consumer without a fight . you see millions of dollars are going to be lost when this happens. Finnally the little people will get a break on energy prices. After all to be a competative market all sources of energy should be allowed to compete> thats my 2kws

bryan

Contact your legislative officials and demand Texans are allowed to purchase and use solar panels for their homes to save on green house gases. Senate bill 403 bypasses hoa’s to be able to install the panels.

Sheryl Stedman

I live in Magnolia. What companies are coving this area if any? After reading the previous emails I am wondering if all this is too risky for me. I just want to be able to run my air conditioner this summer and pay the bill.

Dan

To whom it may concern, I would like to help people with renewable energy and reside in Texas. I have been working towards openning people’s eyes in the US but in Texas potential funding resources that would help to get this concept off the ground have made their fortune in fossile fuel with no intention of deviating from this. Do you have any ideas or suggestions on how to go about raising startup funds for a organization geared towards making newable energy affordable to everyone including the poor with an opportunity of freedom? I have not been evolved in non-profit organizations but my heart is into the renewable energy cause as a movement towards freedom for people whom want to be free from reliance on something else to provide them what they need farely. Thank you very much in advance. Dan

Dan Hahn

Dan,

Great name BTW. It seems as though your heart and head is in the right space. I recommend networking into business groups where there is venture capital flowing. I’m not sure who is involved in Texas, though I wish you the best of luck!

Cheers,

- Dan

Lydia

I’m looking forward to the increasing affordability of solar power in our state. As a Realtor, I’d like to know where you get the statistic about a home value rising 20x the annual electric bill savings. I sell a lot of homes and have never heard of this kind of increase in property value. Is there something to back this up?

Dan Hahn

Lydia,

Thanks for your question and your real estate work. Appraisers are still getting their act together on this one and they may vary a bit from one to another, but according to The Appraisal Journal, home value increases by about $20 for every $1 reduction in annual utility bills. Said another way, solar energy adds 20 times yearly energy savings to resale value.

Regardless, as I think that 20x multiplier is actually a little conservative. Solar panels are guaranteed to be producing at at least 80% of their capacity at year 25. They’ll actually be working for 40 to 50 years. However, your utility prices aren’t going anywhere but up. The 20x multiplier doesn’t even take that into account. The more your electric rates go up, the more valuable your investment becomes because you’re offsetting that much more power with your own power.

Hope that helps,

- Dan

Murray

Our company has installers in many Texas Markets.

Texas is about to move up to at least a 4 star if not a 5 star once this bill is signed by Gov Perry. As a 30% rebate, 500 million will install alot of solar systems in Texas.

http://finance.yahoo.com/news/Texas-Senate-passes-500M-apf-14997773.html?.v=1

Dan Hahn

Murray,

Thanks for the link, we’ll be on it once this bill gets signed and we get a little more info!

- Dan

MINS

do any of you know any websites with people who had tried unsuccessfully to use ‘green power’ or solar power if know plz comment.

kevin

There seems to be much confusion about how the federal and utility rebates are applied. Some web sites show the federal tax rebate as (cost – utility rebate) * .3, while others show it as cost * .3. Which is correct?

Murray

Kevin;

There will continue to be much confusion on this issue until the IRS finally issues their REG’s on this matter. This may take a while as some states have gotten to be very creative in their promotion of Solar with Paid-In-Tariff’s, Grants, State Rebates, State Credits over multiple years. I have discussed this matter with a couple of my contacts at the DOE and it could be several months before all these issues have finally been addressed in the first draft with probable multiple clarifications to follow because of the complexity of the law / issue itself.

I advise our dealers to provide clients with this background when explaining the 30% Federal Credit and to be on the conservative side until the IRS regulatons finally come out.

Dave

Looking to install a 5 KWH system in Plano, but I’m wondering what effect coming (maybe) federal laws might have or if I’m looking at only the IRS “30%” thing. TXU utilities seems to be totally ignorant on the subject..

kevin

Does anyone know if churches qualify for the 30% tax credit or are there any other incentives for churches?

Harrison

Say, using the example at the beginning of this thread, I would like to install a 3 kW system that would be about $27,000 ($9.00/Watt x 3,000 Watts). In this example I wouldd be in line to receive the maximum incentive of $13,500. The Fed offers a 30% incentive in the form of a tax credit with no cap. Assuming you have the tax liability, you’re in line to deduct another $8,100 (30% x $27,000).

Assuming that the above price is applying for a grid-tie system (no batteries). Now, I want an off grid system with batteries installed. Does the incentive apply to the initial batteries cost too ? When you say “system”, is it referring to the entire system or just the solar panel ?

Dan Hahn mentioned that solar panels are guaranteed to be producing at at least 80% of their capacity at year 25. How often the batteries need to be replace within these 25 years. Will the batteries replacement cost is getting incentive too?

David mentioned : “If your system is grid-tied, it will go down if the grid goes down”. Why ? Technically, I think even it’s a grid-tied system, solar panels generate their own power, why we can’t use it. Assuming this is something that the monopoly wants to control, we probably need a system that automatically tie (to sell) and untie (to use). It would be nice.

Think about someday, every single house has its own solar power system, we maybe able to share electricity through the network…just like the internet…

Murray

Dave, Txu through its Oncor subsidiary offers a 2.46 per watt grant. Since February we have been installing systems all over the Oncor system as an Oncor certified installer. Give us a call and we will walk you through the steps.

Murray

Kevin, we have structured a tax lease for non-profits so other entities (usually us) can use the tax benefits which can then be passed along to the non-profit in the form of a lower priced unit at purchase option time. If you wish to know more about how this works contact me.

ray eytcheson

Since there is no true correlation between watts and amps, how do we correctly determine the size of system that is necessary to assure a minimum of 100 amp availability via solar

ray eytcheson

I found the thread very informative. It’s sad that Texas is so backward in having a unified policy regardless of provider. But the solar client is more interested in cost containment, than revenue generation anyway. We invest, we save!

Murray

Texas has probably one of the best Solar Environments in the Country. AEP just started offering last week a 2.50 a DC Watt rebate. See http://www.cleanenergyassociates.com/txreincentives.php

When combined with the programs recently announced by TNMP, Entergy and Xcel a vast majority of the state has very lucrative incentives. Much better than many other states though it is fragmented. Problem areas are the COOPS, El Paso and the Houston Market.

Rose

My only option in East (less than 15 minutes from down town Dallas) Texas is to be vitimized by my electric co-op. My co-op not only has numerous complaints against them according to PEC (not like PEC can do anything to them)but they also have some of the highest rates in any Texas co-op. They are NOT on any rebate lists that I can find & according to complaints I have heard/read from others, there is so much red tape bullcrap with HOAs & wind turbines, ‘good luck!’ Our co-op ‘claims’ they offer green energy incentives BUT only if your not in any kind of HOA violations?!?!?! Not too mention other ‘rules & regulations’ to qualify. Since when did the co-op & the HOA take over my rights to be green? The co-op ‘board’ still houses the same ‘good o’le boys’ from years past. As I know fully they will NEVER vote for deregulation, how can I make my one voice heard above the ‘good o’le boys’ on the co-op board? I would host functions, pass out flyers, makes calls ect, to do whatever it would take to push the co-op OUT! Can someone advise me as to where to start? I have checked Right To Choose, ERCOT, Americans For Prosperity & several others but the message seems to be the same. I’m moreless at the mercy of my co-op. Someone PLEASE help me!

tim

I am looking to ease into the Solar Business and am looking for eduactional / training resources in Texas. Any suggestions would be appreciated.

Tor a.k.a. "Solar Fred"

Tim,

I’m not familiar with anything in Texas, but check out Solar Energy International based in Colorado, a very reputable place. They have some on line courses that would help you on your way and then perhaps you get some hands-on experience nearby. Hope that helps. Also, check out Solar Living Institute if you want to take a trip to California.

[...] happenings in Texas– solar rebate wise– and our Mothers were not here to clean up our Texas page of solar power rebates and incentives. So we finally got off our ass took a look at what had changed in 9 months since our [...]

edgar

Were can i get info on who to sell energy from my solar panels in Laredo TX?

Phillip Kearn

San Antonio offers the best rebate through CPS Energy (solar panels). For Commercial projects, they pay $3.00 per watt for up to $100,000. Residential is the same with a cap of $30,000. Most of the companies there are “mom and pops” so do your research. Uptown Solar and 1BG are the larger companies I recommend.