Solar power is a great way for businesses to reduce their energy costs and improve their sustainability. However, the upfront costs of installing a solar system can be a significant barrier for many businesses. Fortunately, there are many incentives available for businesses in Austin, Texas, that can help offset the cost of going solar. In this blog, we will delve into the various government and utility incentives available to businesses in Austin for adopting solar power.
Federal Investment Tax Credit (ITC)
The Federal Investment Tax Credit (ITC) is a federal tax credit that allows businesses to deduct 26% of the cost of installing a solar system from their federal taxes. The ITC applies to both commercial and residential solar installations and has no cap on the credit amount. The ITC is available until 2023, after which the credit will decrease to 22%.
Property Tax Exemption
In Texas, installing a solar system can increase the value of a property, which would result in higher property taxes. However, Texas offers a property tax exemption that exempts the added value of a solar system from property taxes. This means that businesses can install a solar system without worrying about increased property taxes.
City of Austin Commercial Solar Rebate
The City of Austin offers a commercial solar rebate program that provides rebates to businesses that install solar systems. The rebate amount is calculated based on the size of the solar system installed and ranges from $0.04 to $0.08 per watt. The maximum rebate amount is $50,000 per project.
Austin Energy Solar Performance-Based Incentive
Austin Energy, the city’s utility company, offers a Solar Performance-Based Incentive (PBI) to businesses that install solar systems. The PBI is calculated based on the amount of energy produced by the solar system and is paid out over a 10-year period. The PBI is currently $0.035 per kilowatt-hour (kWh) for systems up to 50 kW and $0.025 per kWh for systems between 50 kW and 200 kW.
Net Metering
Net metering is a billing arrangement that allows businesses with solar systems to receive credits for excess energy generated by the system. The credits can be used to offset the cost of electricity purchased from the grid when the solar system is not generating enough energy. Austin Energy offers net metering to businesses with solar systems up to 200 kW.
Conclusion
Solar power is a great way for businesses to reduce their energy costs and improve their sustainability. The various incentives available to businesses in Austin, Texas, make going solar even more attractive. The Federal Investment Tax Credit, Property Tax Exemption, City of Austin Commercial Solar Rebate, Austin Energy Solar Performance-Based Incentive, and Net Metering are all incentives that can help offset the cost of going solar. By taking advantage of these incentives, businesses can reduce their energy costs and improve their sustainability while helping to create a cleaner, more sustainable future.
Axis Solar is an Austin-Based Solar company that specializes in Commercial Solar EPC. If you’d like more information about installing solar panels on your non-profit organization, business or commercial property contact us at (512) 501-4084 or email Help@Axis-Solar.com.