2023 Solar Incentives Guide for Clute, TX - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Clute?

Source: https://www.dsireusa.org/

Solar incentives encourage people to switch to renewable energy by providing financial incentives that lower the burden of solar panel installation and use. You might qualify for several types of incentives, such as cash back, discounts or monthly utility bill credits, depending on your situation. Some incentives come from your specific utility company, county or municipality, some from the state of Texas and others from the federal government. Types of solar incentives might include:

• Tax Credits: Tax credits are dollar-for-dollar reductions that lower the amount of income tax you owe the federal government. (A tax credit is different from a tax deduction.)
• Net Metering: Net metering is an incentive you can get after your solar panels are up and running. If you've signed a net metering agreement with your Clute utility company, the company will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some places, this credit is dollar-for-dollar, while in other areas you might be refunded a percentage of the value.
• Tax Exemptions: Your solar panel system may qualify for exemptions on both sales and property tax. Sales tax exemptions come into effect at the time of purchase. Property tax exemptions let you ignore the value that solar panels add when you are calculating property taxes on your home.
• Rebates: Rebates, or cash back after a purchase, are normally given before any solar tax credits are calculated. Rebates might be provided by your local utility company, by your state or by your county.

Federal Solar Incentives

Federal solar incentives are likely the first thing that you think of when thinking about solar incentives. One of the incentives that most people are likely to be familiar with is the Federal Solar Investment Tax Credit (ITC). This incentive is a tax credit for a given percentage of your solar system's cost.

The ITC applies to the total cost of installing a solar system, including the panels themselves as well as accessories, labor and equipment. You can claim this credit for panels installed after January 1, 2006 on a primary or secondary residence that you own, as long as it is located in the United States. The tax credit ranges from 26-30% of total costs depending on when your project was completed. There is no maximum claim amount.

To better understand how the ITC will apply to you, contact your local Clute solar panel installation expert and request more information.

In August 2022, the ITC (now referred to as the Clean Energy Credit) was bolstered by the passage of the Inflation Reduction Act. The Clean Energy Credit is valid until 2035. Your solar installation project undertaken between 2022 and 2032 may qualify for a 30% tax credit; this amount will decrease slightly on a yearly basis until the current program ends. Starting in 2023, it will also be easier to qualify for credits for energy storage systems with the new act.

Click here to learn more about the new Inflation Reduction Act. To fully understand how the new Clean Energy Credit might apply to you, get in touch with your local Clute solar installers.

State & Local Solar Incentives

Not all solar incentives are federal; rebates, tax credits and more may be offered at the local or state level. These incentives might be handled by your county or municipality, or by the Texas government. Some are available for a limited time, while others are ongoing.

Next Steps for Installing Solar in Clute

Solar energy use nationwide has gone up significantly in the past 15 years, in part due to the growth in the number of solar incentives. You may get these incentives from the Texas government, the federal government or your local utility company. When you're prepared to make the change to solar energy, talking to your local Clute solar panel installation expert is a great first step.