Benefits of Solar Energy
Solar energy has several advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems operate through power outages and emergencies, and you won't have to depend on your power company for your safety and well-being.
- Lowered energy bills: You can dodge the expensive cost of grid-tied power by creating some electricity at home. Plus, many states offer net metering which can allow you to sell your unused energy back to credit part of your bill.
What Solar Incentives Are Available to Austin Homeowners?
Texas agencies and electric companies offer several solar incentives to help lower your solar system costs. Here's a breakdown of eligible solar programs where you live.
Incentive Type: Property Tax Incentive
Website: comptroller.texas.govIncentive Amount:
100%
Incentive Type: Rebate Program
Website: texasgasservice.comIncentive Amount:
Free Equipment Program: Free appliance installation and weatherization services
Home Improvement (includes attic insulation, duct sealing, duct insulation, duct replacement, high-efficiency gas furnace, and Wi-Fi thermostat: Up to $1000
Solar Water Heater With Natural Gas Backup: $750
Tankless or Super High-efficiency Water Heater: $650
Furnace: $675
Furnace Tune-Up: $40
Natural Gas Dryer with moisture sensor: $225
Natural Gas Dryer Stub: $300
Incentive Type: Rebate Program
Website: austinenergy.comIncentive Amount:
$2,500
Incentive Type: Rebate Program
Website: savings.austinenergy.comIncentive Amount:
Central AC/Heat Pump: $150 - $600
Package Unit AC/Heat Pump: $200 - $550
Mini-Split AC/Heat Pump: $250 - $800
AC Tune-Up: $175, max of 5 systems
Pool Pumps: $300 per pump replaced
Heat Pump Water Heater: $800
Smart Thermostat: $25/unit, plus $85 for participating in the Power Partner Thermostat smart energy savings program
Window Air Conditioners: $50 per unit
Weatherization Bonus: Up to $2,400
Solar Screens/Solar Film: $1.00/sq. ft.
Attic Insulation to R-38: varies by original R-value
Duct Replacement: $3.25/sq. ft.
Duct Insulation: $1.00/sq. ft.
Duct System Performance Testing: $200 - first system, $100 each additional system/ $75.00 per new return air improvement (max 3 per system)
External Combustion Air: $20 each
Air Infiltration and Duct Sealing: $0.12/sq. ft.
Total External Static Pressure: $175 for first system, $100 for additional
Return Air/Supply Grilles: $5 each
Improve Supply and/or Return Plenum: $75 each
Additional Attic Access: $25
Insulated Box for Pull Down Stairs: $25
Fan Cover: $25
Incentive Type: Rebate Program
Website: pec.coopIncentive Amount:
Central AC: $250/unit
Heat Pump: $250/unit
Ground Source Heat Pump: $250/Ton
Dual Fuel Heat Pump: $250
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Austin
The more informed your provider search is, the better your solar panels will ultimately work. Here are some important factors to keep in mind while shopping for a solar company.
Licensing and Training
All solar energy companies in Texas must have a state electrical contractors' license from the Texas Department of Licensing and Regulation. The Texas State Board of Plumbing Examiners regulates plumbing regulations and licensing standards for solar thermal installers. You should also visit a company's website to learn about its private certifications. Two of the most recognized are the PV Installation Professional and Solar Heating Installer certificates, awarded by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Austin
The kind of solar panels you choose determines how much power you can produce. Monocrystalline panels and high-quality and cost more but give you the best performance. Polycrystalline panels produce less power, but they're worth it if you want a traditional panel style without the high cost. Thin-film panels aren't meant for large home installations, but they're excellent for small projects like sheds and RVs.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total installation cost, but they can enhance your solar system's efficiency. Not every solar company offers these add-ons, so look for a provider that installs them if it's crucial for you.
Most Austin homeowners choose solar systems sized for five kilowatts (kW) of electrical capacity. These systems run about $16,650 to install, considering both parts and installation. You can find more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,209 |
| Solar Polycrystalline | $943 |
| Thin-Film | $551 |
| Solar Battery | $773 |
| Solar Home EV Charger | $2,901 |
Financing Solar Energy in Austin
There are various ways to pay for a solar energy system, and the right one will reduce your expenses. A few of the most common options include leases, loans, cash payments, and power purchase agreements (PPAs). Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they save you from paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Similar to a home or auto loan, you'll pay a set monthly rate with as little as $0 down. Solar leases allow you to use your panels for a set monthly rate, while PPAs let you pay just for the energy you use, similar to an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Look for providers that offer two or more payment plans to find the right fit for your pocket.
The table below lists the average payback periods for different capacities of solar systems in Austin.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Further incentives may be available through city and state governments, usually in the form of rebates and special financing programs.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.1 years |
| 2 kW | 4.2 years |
| 5 kW | 10.6 years |
| 10 kW | 21.2 years |
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Frequently Asked Questions About Solar in Austin
How much money could I save by going solar in Austin?
Is solar energy readily available in Austin?
Will a solar PV system boost my Austin home value?
Could I still use solar power if I live in a rainy, dark, or wooded area?
How can I evaluate my property's solar viability?
How long is a Austin solar panel's average lifespan?
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from the government, local banks, installer and specialty lenders. You'll need to pass a credit check to qualify for most of them. While the upfront costs are larger, and you'll be responsible for upkeep, you'll also have full ownership rights and can apply for many more financial rewards.
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