Current Policies and Programs:
There are many financial incentives to help offset the initial cost of a solar PV system such as 1 Tex. Tax Code 11.27 and 2 Tex. Tax Code 171.056.
- 1 Tex. Tax Code 11.27 :
- Texas offers this property tax exemption to help offset the homeowner’s property taxes when they install Solar and Wind energy devices to their property. When a person installs a solar PV System to their home, they are increasing their property value. This increase to a property’s value will increase a home owner’s property tax, and by filing this tax exemption the homeowner will continue to pay the property taxes associated with the value of the home pre-installation.
- 2 Tex. Tax Code 171.056:
- An entity that is solely engaged in the business of manufacturing, selling or installing qualifying solar energy devices, as defined by Sec. 171.107, or certain component parts of such devices, may qualify for the franchise tax exemption under Sec. 171.056.” This tax incentive helps companies and franchise owners offset the costs incurred from running a solar company, which helps free up money to invest in the employment of individuals creating jobs and boosting the Texas economy.
- An entity that is solely engaged in the business of manufacturing, selling or installing qualifying solar energy devices, as defined by Sec. 171.107, or certain component parts of such devices, may qualify for the franchise tax exemption under Sec. 171.056.” This tax incentive helps companies and franchise owners offset the costs incurred from running a solar company, which helps free up money to invest in the employment of individuals creating jobs and boosting the Texas economy.
Organizations in Texas:
- The State Energy Conservation Office (SECO):
- A group that is run by the Texas Comptrollers office, and is a great resource for people to locate various financial incentives for renewable energy systems that are distributed at the federal and state levels for incentivizing for renewables and efficiency.
- The United States Department of Agriculture's Rural Energy for America Program (REAP):
- Is a program that issues grants and loans for renewable energy systems.
- LoanSTAR Program:
- A revolving loans program that provides low interest rate loans to assist Texas public institutions by financing their energy related cost and reduction retrofit projects, which includes the installation of solar PV systems.
Other Sources of Information:
There are many other sources available to help with the implementation of residential and commercial solar development, and some of them can be found in the government publication “Guide to Federal Financing for Energy Efficiency and Clean Energy Deployment”. The link to the document is listed below: