Generally, solar is a good investment in Texas. Moreover, you can take advantage of local and federal incentives that will make solar worth it. Incentives, such as the Texas Renewable Energy Property Tax Exemption, generous electricity buy back rates, and the Federal Solar Tax Credit make solar a good investment. Solar payback can vary, depending on your situation. However, your equipment translates into additional home equity.
Recently, solar panel installations in Texas have exploded. Is it worth it financially?
Here you will find enough information to help you determine whether solar panels are the right investment for you.
We’ll answer these questions in the next few minutes:
- A Texas home needs how much solar energy?
- What is the installation process?
- How much do solar panels cost in Texas?
Installing solar panels is an innovative way to harness the power of Mother Nature for your energy needs.
In Texas, are solar panels worth it?
You will save money using this system. However, you will also help make a better planet by not burning coal or natural gas. Let’s start with the basics:
What components make up a solar electric PV system?
Grid-tied solar systems are the most common installation for homes. Installers typically handle all of the bureaucracy. Complicated permitting and engineering is often needed by local municipalities. These permits can be time consuming and costly to complete. Most power companies must inspect the system before installation as well as post installation. This ensures that installers meet specific city requirements.
Installing Solar Power in Texas With Grid-tied Equipment
- Roof mounting rails and solar panels
- Inverters (to convert DC to AC) for solar strings
- Junction boxes and cables
- Junction boxes and circuit breakers
- Net-metering equipment (measures power entering and leaving the grid for consumer credits typically called a bi-directional meter)
- Battery bank (if needed for home energy storage)
What is the average lifespan of a home solar system?
In general, solar panels will last 40 to 50 years. In fact, they will continue generating electricity for up to 50 years after that time period has ended.
Most manufacturer’s warranty their product for 25-years. Most solar panels have a degradation rate. Output diminishes by about .05% every year. Higher quality panels have a lower degradation rate than cheap quality panels.
A warranty protects you against equipment failures. Solar panels have minimal maintenance. However, there are instances where defects can cause problems. Inverters are more prone to problems. However, advances made in technology have made significant improvements in quality as well as lifespan.
A typical micro inverter comes with a 15-year warranty. However, Tier 1 brands such as SolarEdge and Enpahse are available with 25-year warranties. Some power optimizers/inverters can last for 100 or more years – making them a much more reliable investment in the long run.
In 2021, how will the solar federal tax credit work?
How does a tax credit work?
The government offers tax credits to consumers by offsetting a certain percentage of their solar system’s cost on their IRS taxes. This is a ‘dollar-for-dollar’ credit. There is no limit to the amount you can get back. The IRS will credit back taxes paid. A person who earns $100,000 a year and pays $30,000 in taxes is eligible for a $30,000 tax credit
A solar system costing $50,000 is eligible for a $13,000 tax credit. This reduces the price to $37,000. There is no limit to what you can claim. Your claim is based solely on your tax liability. Consult with your tax advisor for more information. You may also refer to tax form 5695 from the IRS for specific information about the Solar ITC.
Source: Federal Solar Tax Credits
Solar is a good investment. Texas leads the country in solar deployment due to the amount of constant sunshine. There are no state programs as there is no state income tax. However, there are certain cities in Texas that offer rebates.
Austin Energy, for instance, offers up to $2,500 in cashback to those who install solar panels on their homes as a green energy incentive.
CPS Energy in San Antonio also offers a rebate. The rebate has decreased over the years. However, CPS still offers a similar rebate as Austin. $2500 is available for those who install solar on their property. An additional, $500 rebate is available for using Mission Solar solar panels.
SmartEnergyManagement, a San Antonio, Texas company, has seen much growth since they started. The company installs solar panel systems throughout Texas as well as other states.
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