In one of the states of U.S. i.e. Texas, the demand for solar power is not going to slow down for coming few years. Solar energy is one of the inexhaustible forms of energy which does not cause any pollution. Moreover, electricity produced by harnessing the solar energy helps in running electrical appliances at homes and offices appropriately. This actually results in lowering down electricity bill to a significant extent. It is due to this reason many people are installing solar panels at their residences and office buildings. Moreover, in order to encourage people to go solar, U.S. Government also offers solar incentives and rebates to people residing in Texas and other states of U.S.
Let’s take a look at one of the most popular solar tax credit incentives in Texas
Solar Investment Tax Credit (ITC)
One of the most sought-after solar incentives available in Texas is Investment Tax Credit (ITC). It is a law extended by the Federal Government in December 2015 that when any tax paying resident of U.S. buys its own solar system, he is entitled to receive a tax credit of 30% of the total cost of purchasing solar panel system. The percentage of the solar tax credit in Texas and other states of U.S. is bound to change with the time in the following manner:
- ITC of 30% is allowed if the system is placed before 31st December’2019
- ITC of 26% is allowed if the system is placed after 31st December’2019 but before 1st January’2021
- ITC of 22% is allowed for the time period before 31st December 2020 but before 1st January’2022
The entire expenditure of installing solar panels like labor costs, on-site preparation, installation of panels, piping or wiring, interconnection, etc., are some expenditure incurred while going solar and is eligible for solar tax credit in Texas.
It is important to highlight that the Federal Investment Tax Credit is not a rebate; it is a kind of credit which allows taxpaying residents to carry forward his tax credit next year to offset tax liability.
Solar Property Tax Exemption
Any homeowner who is interested in setting solar systems at his residences is entitled to receive property tax exemptions as a part of the solar incentive. It goes without saying that getting a property tax exemption is actually like icing on a cake for U.S. based residents. It provides dual benefits to homeowners: it reduces the property prices for today but increases the overall property value for the coming times.
Solar Rebates in Texas
Solar power rebates are given by state or federal government to lessen the burden on going solar on U.S. residents. One of the states of the U.S., Texas offers rebates to individuals where either they can receive lump sum payment or solar panel installer take reduced amount. In order to get rebates, it is necessary to complete the paperwork. Most of the times reputed solar power installer complete the paperwork on customers’ behalf.
Thus, it is clear that lowering down the cost of solar equipment and installation, offering solar rebates in Texas and allowing 30% Federal Investment Tax Credit are some of the strong reasons to go solar in the state of Texas.
So, after reading all solar incentives and rebates in Texas, you want to install solar panels at your residential or commercial buildings, Thompson and Son Energy is there to help you. Simple give us a call or mail your requirements, our spokesperson will get back to you shortly.