As our recent piece titled, ‘The Future is Renewable Energy in Texas,’ the State-wide initiative to shift to a more natural and renewable form of energy is being noticed by the masses. More media releases are saying the same thing and we are nearing a precipice of great change for the Lone Star State.
Ranked in the Top-5 most solar-acclimated states in the nation, Texas is a trend-setter and innovator, setting a precedent for all other states to follow suit.
A recent report from the SEIA (Solar Energy Industries Association), Texas has increased its solar electricity capacities by 60% in less than a year! These staggering figures show no sign of satiating as our public officials are aware of the consequences if we continue in our current energy demands.
Petroleum and natural gas have served us well but they are not ‘renewable,’ which should be our first indication of change being on the horizon.
The Benefits of Solar Power
If you’re doubtful or hesitant about the shift to a renewable energy shift, this is the human inclination and psychologically normal to be fearful of something new to you. However, there is nothing to fear. Solar, Wind, Hydro, and other natural sources of energy production offer so many wonderful qualities to be excited for.
Just a few benefits of solar power to consider are:
- Most importantly, it is renewable. Business Standard News reported that we are likely to run out of oil in the next 53 years, natural gas in 54, and coal in 110. We have burnt through these resources so rapidly (literally burnt through them) and after existing on this planet for hundreds of millions of years, we have blown through them in a destructive period of 200 years.
- The Savings are Staggering - As Carol Mark’s found on the Penny Hoarder Blog, her bills went from upwards of $300 to $45 per month. It has also decreased by 99% in the last 75 years, which is a record-breaking flip of affordability. With prices being at $300 per watt in 1956, and now around $3.00 per watt, the savings can be in the upper region of $30,000 across a 25-year period, with rates only set to become progressively reasonable.
- Return on Investment and Higher Property Values – In an age where the world is transforming to vegan, cruelty-free, natural products, and renewable energy, more and more home buyers will be looking for a home that meets their ethical standards of not wanting a large carbon footprint. This will increasingly have significance in the next decade’s real estate market. As Wells Solar describes, at “approximately $4.00 per watt of installed solar capacity. For a typical 6-Kilowatt solar PV system, this means that solar can add $24,000 to your home’s resale value!”
- Solar power offers a source that we have in spades – Sunshine! Imagine the savings when you don’t have to rely on energy sources and costly expenses to cook your meals and do your laundry. All you need is a sunny day and a solar panel, and you’re in business!
- The Texas Tax Credit – Yes, this great state will also give you a tax break for joining their efforts. Covered in-depth in the next section.
Texas Incentives - Solar Tax Credit
Texas is adapting to these renewable initiatives as a leader of the entire nation. With Texas already beating some of their renewable energy goals in 2009 that they were set to complete in 2025, this state has already made incredible headway in the energy revolution.
As Texas has invested $916 million in Solar Installations in 2016 alone, the state wants to offer its residents a little gift, nudge, incentive, (whatever you’d like to call it) to make the shift.
We are very happy about this Tax Credit incentive and you should be too!
Along with the incredible savings already offered by converting to solar energy, there are rapid schedules coming to brink regarding these Tax enticements.
Some of the key attributes of this Solar Tax Credit that you need to be aware of include:
- In 2019, the Tax Credit was approved by legislatures but you will need to act fast.
- Texans will receive a federal tax credit on the cost to install a new system for residential properties, literally making your solar up-front investment a third less than it retails for.
- This credit was 30% in 2019 but has already decreased to a 26% tax credit in 2020, set to be an even smaller tax credit of 22% by 2021.
- After 2021, this tax credit is disappearing.
It can easily save you $5,000+, but this governmental assistance will not last for long. There is a ticking clock on this deal and not to sound like a salesman, but the government has set a deadline for this tax credit. We only want you to be able to take advantage of the deals while they are available to Texans.
THIS is the time to convert to Solar Energy in Texas.
After 2021 you will not have any tax incentive.
During 2020 you are still able to get over 1/4th of your solar energy installation credited, but even by 2021, this will only be 1/5th.
How Much Does It Cost to Convert?
The costs involved to convert to solar power will mostly be comprised of the panels and installation costs, which will depend on how much area there is to cover.
Consider how much you are already losing to a nonrenewable and unhealthy energy form that has proven to increase cancer rates from strong emissions and toxic pollution. Does that really seem worth your hard-earned income? More than a clean energy option that isn’t slowly asphyxiating you?
As the Energy Sage describes, “The average price per watt for solar panels ranges from $2.57 to $3.35 and solar panel costs for an average-sized installation in the U.S. usually range from $11,411 to $14,874 after solar tax credits.”
As another advantage, it should not raise your homeowner’s insurance policy because solar-powered energy systems are covered, although you may want to raise the approximate value you are covered on your home.