Commercial Solar Financing & Incentives Providing Innovative Solutions Across Texas
Owning your Solar PV system outright enables you to benefit from federal tax advantages as well as utility incentives and rebates.
Federal Solar Incentives
Under the new law, projects under 1MW that begin construction after 2021 and before 2025 are eligible to receive the full tax credit of 30%.
Projects over 1MW that begin construction before January 1, 2025, will receive a base tax credit of 6%. In addition, projects above this size can qualify for the full 30% tax credit if they meet certain labor requirements including prevailing wage and apprenticeship guidelines.
Businesses can see additional tax benefits from solar through accelerated depreciation. Through the Modified Accelerated Cost Recovery System (MACRS), businesses can recover investments in tangible property (such as solar) over a specific time period (now five years) through annual tax deductions. The Solar Energy Industries Association provides detailed guidance on MACRS, and it’s always wise to consult your tax professional to understand how depreciation can apply to your tax liability.
Projects In Rural Areas
If the project is on farmland, the USDA could cover up to 25% of the project’s total cost on top of additional financing from other sources (such as the ITC, and local benefits). For more information on USDA programs, visit the links below:
- Rural Energy for America Program (REAP) Grants
- Rural Energy for America Program (REAP) Loan Guarantees
- High Energy Cost Grant Program
Learn more about how the Inflation Reduction Act helps rural communities.
Texas Property Tax Exemptions for Solar
Businesses who go solar in Texas can benefit from property tax exemptions in the amount of 100% of the appraised property value increase arising from the installation or construction of on-site solar. The depreciated value must be calculated using a useful life of 10 years or less. Learn more about property tax exemptions for commercial solar in Texas.
State and Local Incentives
Incentives for Commercial Solar Systems in San Antonio, TX San Antonio is working to become one of the most sustainable cities in the country. CPS Energy, the municipal utility in San Antonio, offers rebates to customers who install solar PV systems on their...
Incentives for Commercial Solar Systems in Austin, TX In Austin, the local utility is municipally owned and has a strong commitment to renewable energy. Austin Energy offers two types of incentives to commercial customers: The Performance-Based Incentive (PBI) is...
Incentives for Commercial Solar Systems in Dallas / Fort Worth, TX Oncor is the 5th largest utility in the US, covering Dallas, Fort Worth, Irving, Plano, Arlington, Beeville, Midland, Odessa, Killeen, Waco, Wichita Falls, Tyler, and other cities throughout Texas....
Incentives for Commercial Solar Systems in Houston, TX As a competitive energy market, Houston is served by many utilities including TXU, NRG, Reliant Energy, Centerpoint Energy, Engie Resources, and Entrust Energy. Few local incentives are available in Houston,...
Incentives for Commercial Solar Systems in Corpus Christi, TX AEP serves a number of cities across Texas, including Corpus Christi, McAllen, Harlingen, Abilene, San Angelo, and others. The commercial solar rebate is currently $0.50 per watt for systems up to 25 kW in...
Incentives for Commercial Solar Systems in San Marcos, TX The City of San Marcos Electric Utility provides rebates to help offset the initial cost of grid-tied solar systems, on a first-come, first-served basis. The utility also buys back excess solar power that...
Incentives for Commercial Solar Systems in New Braunfels, TX New Braunfels Utilities offers a variety of programs to encourage customers to improve energy efficiency. Rebates are available for a variety of commercial applications, including solar PV.Learn more about...