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EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
Aviation fuel made from a type of mustard plant could reduce flying's carbon footprint by as much as 68 percent, researchers say. © Philippe LEJEANVRE / Getty Images

The aviation industry contributes 2.5 percent of U.S. greenhouse gas emissions and is responsible for 3.5 percent of human-caused climate change.

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EcoWatch Daily Newsletter
An airplane taking off in Germany. alvarez / E+ / Getty Images

By Natalie Muller and Neil King

On the day that the International Air Transport Association (IATA) announced a commitment to reach "net zero" CO2 emissions by 2050, the nonprofit organization Atmosfair has opened the world's first plant to produce carbon-neutral jet fuel.

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CHBD / iStock / Getty Images

The sprawling size and sunny days of Texas make it one of the top states for solar energy. If you live in the Lone Star State and are interested in switching to a solar energy system, you may be wondering: What's the average solar panel cost in Texas?

In this article, we'll discuss the cost of solar panels in Texas, what factors affect pricing, Texas' solar incentives and more. Of course, the only way to know for sure how much you would pay to install a solar panel system on your roof is to receive a free, no-obligation quote from a top solar company near you. You can get started by filling out the quick form below.

How Much Do Solar Panels Cost in Texas?

Thanks to the growing investment in renewable energy technology statewide, homeowners now enjoy a below-average cost of solar in Texas. Based on market research and data from top brands, we've found the average cost of solar panels in Texas to be $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is especially valuable when you take into account the unpredictable Texas energy rates.

Here's how that average calculates into the cost of the most common sizes of home solar panel systems:

Size of Solar Panel SystemTexas Solar Panel CostCost After Federal Tax Credit
5kW$13,450$9,953
6kW$16,140$11,944
7kW$18,830$13,934
8kW$21,520$15,925
9kW$24,210$17,915
10kW$26,900$19,906

Though this data reflects the statewide averages, you'll need to contact a solar installer near you to get an accurate quote for your home. Savvy customers will get free quotes from multiple companies and compare them to the state averages to make sure they receive the best value possible. Bear in mind that the biggest providers of solar won't always have the best prices.

What Determines the Cost of Solar Panels in Texas?

The main factor determining the cost of solar panel installations in Texas is the homeowner's energy needs. No two homes are the same, and installation costs will look far different for a home needing a basic 5kW system and a home needing 10kW with backup power capabilities. The solar financing and installation company a homeowner chooses will also affect a customer's overall solar costs in Texas. Here's how each factor comes into play:

Solar Equipment

Similar to phones, cars and other technology, solar products and system costs vary greatly based on their quality, scale and included features. Some customers may be satisfied with a modest array of affordable solar panels and inverters, while others may opt for a system with premium panels, full-home backup power and cutting-edge energy monitoring technology.

Solar Financing

The overall cost of solar depends significantly on how a customer chooses to finance their system. The three most common solar financing options include paying in cash, taking out a solar loan and solar leasing.

  • The most economical way to purchase solar, an upfront cash purchase provides the best long-term return on investment and the lowest overall cost.
  • Customers can choose to take out a solar loan to purchase the system outright and make monthly payments to repay the loan. The typical payback period for a solar loan averages around 10 years. Systems purchased with a loan are still eligible for the federal solar tax credit.
  • Signing a solar lease or power purchase agreement (PPA) allows a solar customer to rent solar panels from a company or third party. Though requiring the least amount of money upfront, solar leases provide the least amount of overall value. Also, solar leases aren't eligible for the federal tax credit, as the homeowner doesn't actually own the system.

Solar Installation Company

Texas has seen some of the strongest solar energy market growth over the last few years, and the SEIA reports that there are now nearly 600 solar companies based in Texas, and each is looking to expand its market share.

Price ranges can differ significantly based on the installer. Larger solar providers like Sunrun offer the advantage of solar leases and quick installations. Local providers, on the other hand, provide more personalization and competitive prices to undercut the biggest national companies.

Because of this, it's wise to get quotes from a few local and national installers and compare rates — because of the stiff competition between companies, you could end up saving several thousand dollars.

Texas Solar Incentives

For the most part, Texas taxes are administered by local governments. As a result, the state doesn't offer a large number of statewide solar-related policies, and incentives will depend more on the locality in which you live.

However, all homeowners in the state remain eligible for the federal solar tax credit, and there are some statewide local property tax exemptions for both photovoltaic solar and wind-powered renewable energy systems. Let's walk through how to find what incentives are available to you.

Federal Solar Tax Credit

All Texans can claim the federal solar investment tax credit, or ITC, for PV solar panels and energy storage systems. By claiming the ITC on your tax returns, the policy allows you to deduct 26% of the total cost of the solar system from the taxes you owe the federal government.

The tax credit is available to both residential and commercial system owners who have installed solar panels at any point since 2006. The credit is worth 26% through the end of 2022 and will drop to 22% in 2023. It is set to expire at the end of 2023 unless congress extends it.

Net Metering Policies in Texas

Net metering programs allow customers to sell unused solar energy back to their local utility company in exchange for credits that can be cashed in when panels aren't producing energy. Due to the energy bill savings, this incentive can greatly reduce the solar investment payback period.

As is true with most of Texas' solar rebates and incentives, there is not one net metering program that is offered throughout the entire state. Rather, your eligibility will depend on the policy of your local utility company or municipality. Most utilities in the state have a net metering policy, including American Electric Power (AEP), CPS Energy, Green Mountain Energy, El Paso Electric, TXU Energy in Dallas and more.

The rate at which your local utility will compensate for this excess energy will depend on your local policy, so we encourage you to look into the policy offered by your utility company.

Local Solar Rebates in Texas

In addition to identifying your local net metering program, look into any local rebates available to you. Homeowners who live in the top cities for solar in Texas, like Austin, San Marcos or Sunset Valley might have more luck than customers in other areas. The Database of State Incentives for Renewables & Efficiency has a full list of local rebates, solar loan programs and more.

FAQ: Solar Panel Cost Texas

Is it worth going solar in Texas?

Long, sunny days and below-average solar installation costs make Texas one of the best states in the U.S. for generating energy with solar panels. The ample sunshine provides more than enough energy for most families, serving up huge benefits to homes in Texas equipped with solar panels.

How much does it cost to install solar panels in Texas?

As of 2021, the average cost of solar panels in Texas is $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is slightly below the national average due to the resource availability in Texas, current energy costs and the state's available sunlight. The best way to assess how much solar would cost you is to consult local providers near you for a free estimate.

Do solar panels increase home value in Texas?

Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the proportion at which solar panels increase home value in Texas corresponds with the areas with the most solar-friendly policies.

How much do solar panels cost for a 2,500 sq foot house?

Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is the more important factor in determining solar panel cost in Texas. The higher your energy use, the greater your solar needs will be.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

What if I told you there was a miracle plant? One that has over 25,000 uses from rope, to clothes, to concrete, to medicine. A plant that grew quick and tall, that dug its roots deep into the dirt and sequestered tons of carbon back into the soil while sucking polluting metals back out of it. Could you guess what it is? I'll give you a hint, it's been demonized for its association with its cousin, weed. That's right, this miracle plant is hemp. But in the U.S. it's barely grown. So why, if hemp can do such good, has it been so villainized in the eyes of Americans. This is the shocking story of how the United States almost had a sustainable, hemp-based society, and then threw it all away.

Read More Show Less
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Portland, Oregon in September 2020, when wildfire smoke made it the most polluted city in the world. ROBYN BECK / AFP via Getty Images

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Air conditioning systems on buildings with the New York skyline in the background from Gutenberg, New Jersey on May 4, 2021. The EPA has moved to regulate HFCs, powerful greenhouse gases central to refrigeration and air-conditioning. Kena Betancur / VIEWpress / Corbis via Getty Images

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A mother and son looking at the missing road at Vero Beach damaged by Hurricane Jeanne. Jeffrey Greenberg / Universal Images Group / Getty Images

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Congress appears close to a trillion-dollar infrastructure deal that recognizes the risks of climate change and the need to make America's coasts more resilient.

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The sun sets as smoke from illegal fires in an area of Amazon rainforest lingers, south of Novo Progresso in Para state, Brazil, on Aug. 15, 2020. CARL DE SOUZA / AFP via Getty Images

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While rooftop solar systems have become increasingly popular among U.S. homeowners, commercial solar panel installations can be even more effective at generating low-cost renewable energy. Solar energy has a great deal to offer businesses due to the scale at which they can invest, the simplicity of most installations and the high energy costs associated with running a growing organization.

Most business' buildings have wide, flat roofs that can fit a large number of solar panels. Commercial solar panel installations are eligible for two of the largest solar incentives: the federal solar tax credit and net metering programs. Plus, the more solar panels you install, the lower your cost per watt will be. Altogether, this means commercial solar owners get a great bang for their buck.

What Does a Commercial Solar Panel Installation Look Like?

Commercial solar energy systems vary much more in size and scope than their residential counterparts. Most commercial solar arrays are significantly larger, and they aren't always confined to roofs. Some organizations opt for solar carports, while others install ground-mounted solar panels. Larger commercial operations may even feature a "power tower," an array of mirrors that focus the sun's rays onto the photovoltaic panels below them.

Commercial systems are usually installed on a flat surface and must be built on racks tilted toward the sun at the best angle for the solar panels to capture the most energy during the day. Some systems even include features that synchronize the panels' angles (or azimuth) with the changing height of the sun.

Keeping the cost per panel as low as possible is key to securing the quickest return on investment (ROI) for larger commercial installations. For this reason, we recommend selecting the most efficient solar panels available. The less space, products and planning needed, the lower the aggregate costs of the installation will be. More efficient solar panels also tend to last longer, ensuring a reliable investment.

Solar offers commercial property owners a growing number of solutions to offset a large chunk, or even all, of a business's electricity bills. A commercial solar system is a sizable investment, but solar incentives, tax breaks and new technologies make it a very attractive one. The ideal way to get a good understanding of the best solar installation for your business is to consult with a local installer near you and get a quote, which you can do for free below.

Commercial Solar Costs

Given the size of commercial solar projects, customers can usually expect a larger figure than the cost of most residential systems. No two businesses are the same, and though some small organizations may find great value in a commercial system costing around $50,000, large industrial facilities or solar farms can cost over $1 million to install. The good news is that as the scale of the system increases, so does the speed at which you can recoup your investment.

Several tax credits, rebates and incentives still exist for commercial solar panel systems as they do for residential systems.

Incentive Benefit for Commercial Solar Panel Installations

Federal solar tax credit

The federal solar investment tax credit (ITC) allows a deduction of 26% of the cost of the system for any commercial solar installation.

Bonus depreciation through MACRS

The Modified Accelerated Cost Recovery System (MACRS) allows a tax deduction for the depreciation of qualifying solar equipment. This solar tax incentive for commercial installations allows companies to recover their investments over an accelerated amount of time. For solar, this is five years. Bonus depreciation was introduced into MACRS after 2008 and allows you to allocate 100% of the depreciable value in just one year.

In other words, MACRS allows businesses to effectively accelerate their ROI through tax deductions.

Net metering

Commercial properties generating energy via solar panels are eligible for net energy metering (NEM). In the same way that a residential customer would feed excess solar energy back to the grid, commercial installations can exchange their surplus energy for credits from their utility company. These credits can be used to pull energy from the grid overnight or during rainy weather at no cost.

Statewide and local incentives

We encourage our readers to research statewide incentives or local incentives that may be available in their area. Depending on the area, a commercial solar installation could be eligible for solar rebates, renewable energy credits or zero-interest solar loans.

Benefits of Commercial Solar Installations

Commercial solar installations provide all the same benefits that residential solar installations do, only at a much larger scale. As most commercial solar installations can be well over 50 kW (the average residential is between 5 to 10 kW), some commercial solar installations can have over 10 times the environmental and economic impact of your average residential installation.

Environmental Benefits of Commercial Solar Panels

Commercial solar installations have the potential to offset hundreds, if not thousands, of the metric tons of carbon dioxide emitted by conventional energy generation. For example, a 50-kW commercial system will produce an estimated 65,000 kWh of clean energy per year. This would lower a business's carbon footprint by 1,000 metric tons over the course of a commercial solar power system's lifetime (the equivalent of not burning just over 1 million pounds of coal).

As a growing number of consumers are choosing to support businesses with responsible environmental practices, solar presents businesses with a golden opportunity to reflect their commitment to sustainability while still turning a profit.

Financial Benefits of Commercial Solar Panels

Energy costs are routinely one of the highest costs to businesses. Energy Star reports that the nation's small businesses spend over $60 billion on energy per year, and utility rates are only projected to increase over time.

Utility rates also fluctuate with frequent supply disruptions, so investing in solar allows businesses to offset their energy costs in a predictable, fixed manner. The average lifetime of a solar panel is around 25 years, so with the right warranty, a business can reliably budget its energy costs decades in advance. By offsetting the majority (or sometimes all) of their energy costs, businesses can reinvest huge sums of money back into their organizations, raising their bottom line.

FAQ: Commercial Solar Panel Installations

Are commercial solar panel installations worth it?

Installing solar panels is one of the best financial investments a business can make. Assuming they have the proper space and climate for solar panels, businesses can offset huge chunks of their energy costs while fostering an ethical image. With a good number of soon-to-expire commercial incentives on the market today, there has never been a better time for businesses to invest in solar.

How long does it take to install commercial solar panels?

Commercial solar installations are typically much larger than residential installations, so they can have a more intensive install process. Depending on the size of the system, commercial solar panel installations can take anywhere from weeks to months to complete. The best way to learn how long an installation would take for your business is to connect with a local solar installer near you.

How many solar panels do I need for a commercial installation?

The number of solar panels necessary for an installation will depend mainly on the goals of the installation and how much space is available for panels. Though some commercial solar operations like solar farms exist to generate and sell energy for profit, most businesses only aim to offset their own energy costs. That means they won't need to buy as many panels as they can fit, but only the amount necessary to meet their energy needs. The best method to determine exactly how many panels you'd need to meet your energy needs is to contact a local solar installer for a free proposal.

Can solar panels be used for commercial and industrial purposes?

Absolutely. Commercial and industrial solar installations can sometimes offer even more value than residential solar panels. Due to the scale of most commercial installations, price-per-watt is cheaper, giving customers much more bang for their buck. Commercial installations still maintain eligibility for the solar tax credit, net metering and certain tax deductions, making it a savvy investment for business owners.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

Hurricane Iota is the latest category 5 storm ever recorded in the Atlantic, with the aftermath seen here in Cortes, Honduras on November 19, 2020. Orlando SIERRA / AFP / Getty Images

By Jeff Masters, PhD and Dana Nuccitelli

Calendar year 2020 was an extreme and abnormal year, in so many ways. The global coronavirus pandemic altered people's lives around the world, as did extreme weather and climate events. Let's review the year's top 10 such events.

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EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
Aviation fuel made from a type of mustard plant could reduce flying's carbon footprint by as much as 68 percent, researchers say. © Philippe LEJEANVRE / Getty Images

The aviation industry contributes 2.5 percent of U.S. greenhouse gas emissions and is responsible for 3.5 percent of human-caused climate change.

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EcoWatch Daily Newsletter
An airplane taking off in Germany. alvarez / E+ / Getty Images

By Natalie Muller and Neil King

On the day that the International Air Transport Association (IATA) announced a commitment to reach "net zero" CO2 emissions by 2050, the nonprofit organization Atmosfair has opened the world's first plant to produce carbon-neutral jet fuel.

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CHBD / iStock / Getty Images

The sprawling size and sunny days of Texas make it one of the top states for solar energy. If you live in the Lone Star State and are interested in switching to a solar energy system, you may be wondering: What's the average solar panel cost in Texas?

In this article, we'll discuss the cost of solar panels in Texas, what factors affect pricing, Texas' solar incentives and more. Of course, the only way to know for sure how much you would pay to install a solar panel system on your roof is to receive a free, no-obligation quote from a top solar company near you. You can get started by filling out the quick form below.

How Much Do Solar Panels Cost in Texas?

Thanks to the growing investment in renewable energy technology statewide, homeowners now enjoy a below-average cost of solar in Texas. Based on market research and data from top brands, we've found the average cost of solar panels in Texas to be $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is especially valuable when you take into account the unpredictable Texas energy rates.

Here's how that average calculates into the cost of the most common sizes of home solar panel systems:

Size of Solar Panel SystemTexas Solar Panel CostCost After Federal Tax Credit
5kW$13,450$9,953
6kW$16,140$11,944
7kW$18,830$13,934
8kW$21,520$15,925
9kW$24,210$17,915
10kW$26,900$19,906

Though this data reflects the statewide averages, you'll need to contact a solar installer near you to get an accurate quote for your home. Savvy customers will get free quotes from multiple companies and compare them to the state averages to make sure they receive the best value possible. Bear in mind that the biggest providers of solar won't always have the best prices.

What Determines the Cost of Solar Panels in Texas?

The main factor determining the cost of solar panel installations in Texas is the homeowner's energy needs. No two homes are the same, and installation costs will look far different for a home needing a basic 5kW system and a home needing 10kW with backup power capabilities. The solar financing and installation company a homeowner chooses will also affect a customer's overall solar costs in Texas. Here's how each factor comes into play:

Solar Equipment

Similar to phones, cars and other technology, solar products and system costs vary greatly based on their quality, scale and included features. Some customers may be satisfied with a modest array of affordable solar panels and inverters, while others may opt for a system with premium panels, full-home backup power and cutting-edge energy monitoring technology.

Solar Financing

The overall cost of solar depends significantly on how a customer chooses to finance their system. The three most common solar financing options include paying in cash, taking out a solar loan and solar leasing.

  • The most economical way to purchase solar, an upfront cash purchase provides the best long-term return on investment and the lowest overall cost.
  • Customers can choose to take out a solar loan to purchase the system outright and make monthly payments to repay the loan. The typical payback period for a solar loan averages around 10 years. Systems purchased with a loan are still eligible for the federal solar tax credit.
  • Signing a solar lease or power purchase agreement (PPA) allows a solar customer to rent solar panels from a company or third party. Though requiring the least amount of money upfront, solar leases provide the least amount of overall value. Also, solar leases aren't eligible for the federal tax credit, as the homeowner doesn't actually own the system.

Solar Installation Company

Texas has seen some of the strongest solar energy market growth over the last few years, and the SEIA reports that there are now nearly 600 solar companies based in Texas, and each is looking to expand its market share.

Price ranges can differ significantly based on the installer. Larger solar providers like Sunrun offer the advantage of solar leases and quick installations. Local providers, on the other hand, provide more personalization and competitive prices to undercut the biggest national companies.

Because of this, it's wise to get quotes from a few local and national installers and compare rates — because of the stiff competition between companies, you could end up saving several thousand dollars.

Texas Solar Incentives

For the most part, Texas taxes are administered by local governments. As a result, the state doesn't offer a large number of statewide solar-related policies, and incentives will depend more on the locality in which you live.

However, all homeowners in the state remain eligible for the federal solar tax credit, and there are some statewide local property tax exemptions for both photovoltaic solar and wind-powered renewable energy systems. Let's walk through how to find what incentives are available to you.

Federal Solar Tax Credit

All Texans can claim the federal solar investment tax credit, or ITC, for PV solar panels and energy storage systems. By claiming the ITC on your tax returns, the policy allows you to deduct 26% of the total cost of the solar system from the taxes you owe the federal government.

The tax credit is available to both residential and commercial system owners who have installed solar panels at any point since 2006. The credit is worth 26% through the end of 2022 and will drop to 22% in 2023. It is set to expire at the end of 2023 unless congress extends it.

Net Metering Policies in Texas

Net metering programs allow customers to sell unused solar energy back to their local utility company in exchange for credits that can be cashed in when panels aren't producing energy. Due to the energy bill savings, this incentive can greatly reduce the solar investment payback period.

As is true with most of Texas' solar rebates and incentives, there is not one net metering program that is offered throughout the entire state. Rather, your eligibility will depend on the policy of your local utility company or municipality. Most utilities in the state have a net metering policy, including American Electric Power (AEP), CPS Energy, Green Mountain Energy, El Paso Electric, TXU Energy in Dallas and more.

The rate at which your local utility will compensate for this excess energy will depend on your local policy, so we encourage you to look into the policy offered by your utility company.

Local Solar Rebates in Texas

In addition to identifying your local net metering program, look into any local rebates available to you. Homeowners who live in the top cities for solar in Texas, like Austin, San Marcos or Sunset Valley might have more luck than customers in other areas. The Database of State Incentives for Renewables & Efficiency has a full list of local rebates, solar loan programs and more.

FAQ: Solar Panel Cost Texas

Is it worth going solar in Texas?

Long, sunny days and below-average solar installation costs make Texas one of the best states in the U.S. for generating energy with solar panels. The ample sunshine provides more than enough energy for most families, serving up huge benefits to homes in Texas equipped with solar panels.

How much does it cost to install solar panels in Texas?

As of 2021, the average cost of solar panels in Texas is $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is slightly below the national average due to the resource availability in Texas, current energy costs and the state's available sunlight. The best way to assess how much solar would cost you is to consult local providers near you for a free estimate.

Do solar panels increase home value in Texas?

Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the proportion at which solar panels increase home value in Texas corresponds with the areas with the most solar-friendly policies.

How much do solar panels cost for a 2,500 sq foot house?

Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is the more important factor in determining solar panel cost in Texas. The higher your energy use, the greater your solar needs will be.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

What if I told you there was a miracle plant? One that has over 25,000 uses from rope, to clothes, to concrete, to medicine. A plant that grew quick and tall, that dug its roots deep into the dirt and sequestered tons of carbon back into the soil while sucking polluting metals back out of it. Could you guess what it is? I'll give you a hint, it's been demonized for its association with its cousin, weed. That's right, this miracle plant is hemp. But in the U.S. it's barely grown. So why, if hemp can do such good, has it been so villainized in the eyes of Americans. This is the shocking story of how the United States almost had a sustainable, hemp-based society, and then threw it all away.

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