Financing

Commercial Solar Financing & Incentives Providing Innovative Solutions Across Texas

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Solar is a proven investment for businesses in Texas. While utility rates continue to escalate year after year, your solar investment provides a consistent return on investment long-term. Add to that the resiliency and sustainability benefits, and solar is one of the best decisions you can make for your company.

Owning your Solar PV system outright enables you to benefit from federal tax advantages as well as utility incentives and rebates.

Federal Solar Incentives

At the federal level, the Business Energy Investment Tax Credit was recently amended through the Inflation Reduction Act of 2022.

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.

There are also special bonus credits available for PV systems that include domestic steel and iron and other domestically manufactured goods. In addition, projects that are located within a prioritized energy community can receive an Energy Community Bonus. For definitions on energy communities, as well as the latest information on business incentives for solar, visit the DSIRE web site.

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Dws Energy Austin Texas S Capital Of Tx Hwy - DWS Energy

Accelerated Depreciation

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:

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

San Antonio

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...

Austin

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...

Dallas / Fort Worth

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....

Houston

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,...

Corpus Christi

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...

San Marcos

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...

New Braunfels

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...