The price of solar energy systems continues to drop across the country and perhaps nowhere as dramatically as Austin, Texas. According to the Solar Energy Industries Association, 2015 was “the biggest year yet in solar history“! While prices continue to decline across the country, generous incentives still exist for those who purchase a system today. One of the largest is the Solar Investment Tax Credit (ITC). The ITC offers those who install a residential solar system a 30 percent tax credit, and was recently extended by Congress. Additionally, states have their own set of incentives. Qualifying residents of Austin, Texas can apply the Austin Energy Rebate to the cost of installing a system, and then benefit from monthly saving with the Value of Solar Tariff.
The Value of Solar Tariff or VOST program is open to those who own or lease their solar system. VOST pays you for every kilowatt hour (kWh) of electricity your solar energy system produces at a rate of 11.3 cents per kWh. You still pay your utility for the electricity you consume at standard residential rates, but you also get a credit on your bill for the amount you produce each month. If your production makes more money than your consumption for the month your extra credits roll over. At the end of the year your unused credits rollover to the next year.
You are only eligible for the Austin Energy Rebate if you own your solar power system and you use an Austin Energy approved installer to go solar. The EnergySage Solar Marketplace can help you find an approved installer and compare quotes so you get the best deal when you go solar. The Austin Energy Rebate pays you $1.00 for every watt in the size of your system, up to 50% of the total cost of installing your solar system. If you install a 6 kilowatt (kW) system you would receive a rebate of $6,000. According to Austin Energy, you can expect to pay between $2,250 and $4,500 per kW depending on the type of panels and installer prices. So a 6 kW system would cost between $13,500 and $27,000, and a $6,000 rebate would save you an additional 22-44%.
How All The Incentives Work Together in Austin, Texas
- Up Front Cost of a System – Austin Energy Rebate = The Initial Cost of Your System
- The Initial Cost of Your System – ITC 30% Tax Credit = The Final Cost of Your System
How You Save Money In Austin, Texas Monthly
- Your Monthly kWh Consumption x Your Residential Electricity Rate = What You Pay the Utility
- Your Monthly kWh Production x 11.3 cents = What The Utility Pays You for Energy Production
And if you’re interested in the best deal in town, make sure to shop around. By using the EnergySage Marketplace you can expect to save an additional 10-20% on the upfront cost of a system, just by comparing offers from multiple companies who install solar panels in Texas.
Do you live in Austin, TX? If so, check out Go Solar Austin today!