Time to read: 4 minutes
Date: February 7, 2023
Texans looking to get into solar power often wonder how they can make the switch without having to worry about costs. We’re here to tell you that costs should never be an issue. There are several ways that Texans can put their financial concerns at ease. Whether they are looking to install a residential or a commercial solar power system, there are programs and policies in the form of financial opportunities make things easier for Texans. In this article, we will cover many different financial opportunities that Texans can get help in order to finance installing a solar power system. From the incredible benefits of the REAP grant for Texas farmers to the tax incentives offered by the Inflation Reduction Act, Texans have financial opportunities at their disposal than ever.
What are some common financial concerns?
Most of the time, the cost of installing a solar power system is the biggest concern for Texans. Though this is a hurdle, many Texans are still investing in a solar power system for their home and/or business in greater numbers than ever. While no two Texans will have the exact same system or needs, the programs and tax incentives that are in place make solar power more viable.
Solar Financial Opportunities and Benefits That Reduce the Cost of Solar Powered Systems
REAP grants
Texans that install solar power systems for their farms (as long as they are functioning farms that run as a business) are eligible for a financial opportunity called a REAP grant. REAP (short for Rural Energy for America Program) offers grants and loan financing that can help Texans with rural businesses afford solar power systems. Texans with farms or other agricultural businesses can also qualify for a REAP grant. According to the USDA for the fiscal year of 2023, the grant offers a minimum of $2,500 and a maximum of $1 million for renewable energy systems.
Reduced electricity bills
Solar power systems allow you to spend less money on your monthly electric bill. When you pay less for electricity, you can invest in other things that your home or business needs. In some cases, you could even eliminate your electric bill altogether. Check out how one of our customers was able to reduce their bill in our other post!
Solar buyback programs
Solar buyback is a great financial opportunity for Texans. Using solar buyback allows you to send the excess power your solar panels create back to your utility provider. In exchange, you receive a credit that you can apply to your bill. There are many different solar buyback programs and the amount you get back can vary. Solar buyback is a great way to get the most out of a solar powered system. Curious about net metering? Check out our article on it!
Tax credits and financial opportunities
Whether Texans are looking to install a solar power system in their own home or their business, the IRA tax credits make it a worthwhile investment. Currently, the IRA enables Texans with residential solar power systems to possibly deduct up to 30% of the cost that the taxpayer paid for. This tax benefit will stay at 30% through 2032. These tax deductions are incredible financial opportunities that Texans can benefit from when they claim them.
While residential owners of solar powered system are able to deduct 30% of what they paid for their system, commercial installations get even higher deductions. Thanks to the IRA, commercial solar installation owners could be able to deduct a whopping 40% of the cost they paid all the way up to 2032.
Here’s a quick breakdown of the tax credit from energy.gov:
For residential and commercial systems…
- 2022-2032: 30% deduction
- 2033: 26% deduction
- 2034: 22% deduction
- 2035: Tax credit expires until it can be renewed by Congress
Be sure to talk to your tax professionals in order to understand what having solar will look like for you.
REAP Grants and Other Financial Opportunities Remove the Roadblocks of Financing Your Solar Power Systems
With so many different programs, benefits, and financial opportunities, it’s no wonder more Texans are switching to solar! The USDA’s REAP grant is the perfect tool for easing the financial strain of rural businesses looking to switch to solar. Getting the right solar power system for you has never been more affordable. When you install a solar power system with backup batteries, you get stable, reliable energy that you can count on. When you add a home standby generator, you can keep the electricity flowing no matter what kind of weather or power conditions come up.
DISCLAIMER: IES Texas Solar, as well as its employees and contractors, are not financial and/or legal advisors, nor do they operate in any capacity as financial and/or legal advisors. Please consult licensed professionals for financial and legal advice.
If you are considering installing a backup generator or switching to solar for your home or business, reach out to us by going to our website, iestxsolar.com, or by giving us a call at (855) 447-6527.
Sources:
https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans#:~:text=Renewable%20Energy%20System%20Grants%3A,%241%20million%20maximum.
