Solar power systems are quickly becoming a foundational piece of the puzzle regarding renewable energy, particularly for Texas. There are more and more reasons to switch to solar for power, even some tax-related benefits. Suppose you’re a business owner considering commercial solar incentives. In that case, you may be pleasantly surprised to find out that there are tax incentives that come with installing solar energy storage systems on your property.
Because of the unique landscapes, weather conditions, and affordability of solar panels in Texas, the Lone Star state is one of the top locations for solar power cultivation and output in the United States.
To take advantage of Texas’ tax benefits for commercial properties, it’s important to consult with a commercial solar company. Professionals (not amateurs) will help you understand the ins and outs of Texas solar incentives.
Here are just a few of Texas’ incentives for commercial solar installations:
Business Energy Investment Tax Credit
Texas offers a very attractive incentive for business owners known as the Business Energy Investment Tax Credit (ITC). You can claim the ITC on your federal corporate income taxes and deduct 26% of the costs related to your solar photovoltaic (PV) system from taxable income. Initially passed as a temporary incentive in 2005, it has been extended into 2022 until further notice.
Property Assessed Clean Energy (PACE)
PACE finances properties that invest in energy efficiency improvements; this is accomplished by promoting property owners to undergo a property energy assessment and pay back improvement costs through annual property taxes. While this can be a great option for commercial property owners interested in solar panels, the property will need to be in an established PACE district.
Rural Energy for America Program (REAP)
REAP is a program through the U.S. Department of Agriculture that offers improvement loans and grants for agriculturalists and rural business owners. In fact, they guarantee loan and grant financing for rural businesses to install renewable energy systems. Solar panels are eligible for business owners as long as they fall into certain geographic areas on their map.
Utility Rebates
Many utility companies offer their own incentives for grid-tied renewable energy systems, including solar! Businesses can save money by enrolling in these rebate programs and even selling energy back to the grid. Major energy suppliers in Texas, such as CenterPoint Energy, Oncor Electric Delivery, Austin Energy, CPS Energy, Midsouth Electric Co-op, and San Marcos Electric, offer solar rebate programs.
Property Tax Exemption
Solar panels can increase the value of your commercial property, but not your property taxes, thanks to Texas’ property tax exemption. With a property tax exemption for solar installation, the state ensures your property taxes won’t increase for a designated period of time. But, you can rest assured that you’ll gain equity as a property owner after the installation is complete. Also, it gets better; you can deduct the cost of your property’s solar panel system from your franchise taxes!
Commercial Solar Incentives – Solar Working For Your Business
Solar installations in Texas are happening more with each passing year, and it’s great to see more and more commercial solar projects get off the ground thanks to commercial solar incentives.
There are many solar companies in Texas, but not all are experienced, knowledgeable, and client-focused like Sunshine Renewable Solutions. As premier Houston solar installers, we are proud to offer expert advice and guidance on solar projects for residential and commercial properties.
Please contact us with any questions you have
