Despite the fact that Texas is most known for its oil wells and refineries, the state also boasts a thriving market for alternative energy sources, such as solar panel electricity.
Texas is expected to have the highest growth in solar energy in the US in 2023, according to the Energy Information Administration, according to Reuters.
Texas Ranked for Best Solar Panel Policies by CNET
Texas offers its own incentives to entice households to install solar panels and batteries in addition to the federal tax credit for solar energy systems.
Texas was given a spot on CNET’s ranking of the states with the best solar policies because of those incentives.
Policies to support solar energy may include subsidies for solar panels, exemptions from property taxes, or cash payments for extra electricity produced.
The majority of Texas communities have deregulated energy markets, allowing around 85% of inhabitants to select from a variety of electricity suppliers.
16 municipalities with municipal utilities, including Austin and San Antonio, are still under regulation, which prevents their citizens from selecting an energy provider.
Having the freedom to choose your service provider may provide you the chance to receive a sizable financial reward for installing solar panels.
Texas is one of the states that exempt solar installations from property taxes.
Read more: Revolutionizing Solar Energy: Bill Gates’ Photovoltaic Innovation Holds Key To The Future
Property Taxes in Texas Collected at the Local Level
Your home’s assessment for determining property taxes will not at all take into account the value of your solar panels and batteries.
Texas does not have a state property tax; all such taxes are collected locally.
However, according to section 11.27 of the state tax code, individuals who install or build a solar or wind-powered energy device on real property that is primarily used for the production and distribution of energy for on-site use are entitled to an exemption for the value the device adds to the property, regardless of whether the individual owns the real property on which the device is installed or not.
The independent nonprofit organization Tax Foundation estimates that the average property tax rate in Texas is 1.68%.
Read more: Texas Homeowners Aid: Income Guidelines For Accessing Assistance