Incentives For Solar Energy Systems in Texas

Net Metering

• Net Metering means selling excess energy back to the power company. It is one of the best incentives to investment in alternative energy for the home, because it means that, in addition to a family's energy use being free, it also begins to generate an income. In Texas, whether net metering is available depends on the local power company. Private, investor-owned, utilities are required to credit the excess power generated to a consumer's account. Energy co-ops are not required to do this, though some do. They are free to set their own policies in this area.

Loans and Rebates

• In Texas, programs that provide loans for home energy upgrades, as well as programs that provide rebates after solar energy systems are installed, are handled through local energy providers. In Austin, for example, rebates of up to $12,500 are available with an additional 30% available in tax credits from the federal government on amounts not covered by other rebates. Individuals considering alternative home energy systems should talk to their local power company to see what programs, benefits and incentives are available in their area.

Solar Cities

• The United States Department of Energy (DOE) designated 25 U.S. cities as "Solar America Cities" in 2007 and 2008. The DOE was provided funds to help these cities, their power companies and residents to develop solar energy strategies. Because of the large amounts of solar radiation available in many parts of Texas, three of its cities were chosen for the Solar Cities program. Additional resources may be available through the DOE for San Antonio, Houston and Austin.

Reap Program

• The United States Department of Agriculture (USDA) has a number of programs designed to help agricultural producers and small rural businesses to purchase renewable energy systems. This can be of tremendous benefit to farmers, as it can eliminate much of the energy cost of maintaining a farm and potentially provide a new source of income through net metering, where it is available. Among the available USDA programs are Rural Energy For America Program Grants (REAP), the Energy Efficiency Improvement Program (EEI) and Renewable Energy Systems (RES).