✅ Federal Incentives
All federal benefits apply to entities in Texas.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.
⚡ Property Tax Exemption
Texas offers a property tax exemption for solar energy systems. This means that installing a solar system will not increase your property's assessed value for tax purposes.
✅ Utility Incentives
⚡ Net Metering
Texas does not have a statewide net metering policy. However, some utilities and retail electric providers (REPs) offer net metering or similar programs. It's advisable to contact your local utility provider or REP to inquire about available programs and compensation rates for excess energy produced by your solar system.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
Texas offers a combination of federal incentives and state-level programs to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits. The federal 30% solar tax credit and property tax exemption provide financial support and compensation for solar energy production. Additionally, nonprofits can benefit from direct payments equivalent to the federal ITC. These incentives make Texas an attractive state for solar energy adoption.