Solar energy isn’t just about being environmentally conscious—it’s also a powerful financial investment for Texas homeowners. With rising electricity costs, a growing demand for eco-friendly homes, and various incentives available at the federal, state, and local levels, going solar offers significant long-term savings and increases the value of your property. Here’s a closer look at the financial benefits of solar energy in Texas.

Long-Term Energy Savings
One of the primary reasons to install solar panels is the potential for long-term energy savings. Solar power systems allow homeowners to generate their electricity, reducing reliance on the grid and saving thousands of dollars in electricity bills over the system’s lifespan. Given that Texas is one of the sunniest states, a solar system can generate a substantial amount of energy year-round.

The average 8 kW solar system in Texas can generate around 12,000 kWh of energy annually, saving homeowners approximately $1,790 per year, based on an average electricity rate of 14.92 cents per kWh. According to MarketWatch, over the typical 25-year lifespan of a solar system, homeowners can expect to save more than $30,000 in energy costs after accounting for the system’s installation cost. With the state’s abundant sunshine, solar systems tend to pay for themselves within 7 to 10 years, making them a worthwhile investment with a clear return on investment.

Increased Property Value
In addition to lowering energy bills, installing solar panels increases the value of your home. Studies have consistently shown that homes with solar installations sell for more money and sell faster than homes without solar. Many prospective buyers understand the long-term cost benefits of owning a home with solar, making your property more attractive in a competitive market. In Texas, the Renewable Energy Systems Property Tax Exemption allows homeowners to enjoy these benefits without worrying about higher property taxes.

This tax exemption ensures that when you install a solar energy system, you won’t be taxed on the increase in your home’s value. For example, if you own a $350,000 home in San Antonio and install a $25,000 solar panel system, your property taxes will still be based on the original $350,000 valuation, not the post-installation $375,000. This exemption makes solar even more attractive by removing the financial concern of higher taxes while still boosting the resale value of your home.

Solar Incentives and Rebates in Texas
One of the major financial incentives available to homeowners who go solar is the Federal Investment Tax Credit (ITC). The ITC allows homeowners to claim 30% of the total cost of their solar installation as a credit on their federal taxes. For example, if you install a $33,000 solar system, you can claim a $9,900 tax credit, significantly reducing the overall cost of the system. Even if you don’t use the entire credit in one year, the unused portion can be carried forward for up to five years, ensuring maximum financial benefit.

In addition to the ITC, Texas homeowners can also take advantage of several local incentives offered by utilities and municipalities. For example, homeowners in Austin can receive up to $2,500 for systems with at least 3 kW of installed capacity by taking advantage of Austin Energy’s Solar Rebate Program.

These local incentives, combined with the federal tax credit, can significantly reduce the payback period for a solar installation, making solar power more affordable and accessible to Texas homeowners.

Net Metering in Texas
Net metering or solar buyback plans are another way to maximize the financial benefits of going solar in Texas. While the state doesn’t have a standardized net metering policy, many retail electricity providers offer solar buyback programs that credit homeowners for the excess energy their solar panels generate and send back to the grid.

Depending on the provider, you may receive credit at the full retail price of electricity (around 15 cents per kWh), or at a reduced rate. Choosing a provider with a full retail credit plan can further reduce your energy costs and accelerate the payback period of your solar investment.

Why Choose NATiVE?
As you weigh the financial benefits of solar energy, it’s crucial to partner with a trusted solar provider to ensure a smooth installation and maximum returns. NATiVE Solar is one of the longest-running and most established solar companies in Texas, with over 16 years of experience delivering high-quality solar systems for both residential and commercial properties.

By going solar with NATiVE, you’re choosing a reliable partner committed to helping you achieve energy independence and long-term financial savings. Contact us today to learn more about how we can help you take advantage of solar energy and maximize the available incentives in Texas. #TakeYourPowerBack