* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 26% federal tax credit.
Updated August 19, 2020
Austin is a great place to go solar. You’re probably using Austin Energy as your utility. The combination of Austin Energy's value of solar program and the state's high average electricity usage makes solar an excellent investment in Austin.
The most significant incentive to install solar panels in Austin is the 26% federal tax credit. However, the tax credit is set to step down to 22% at the end of 2020. This means in order to maximize your savings potential, the best time to go solar in Austin is now.
Another key incentive for going solar in Austin is Austin Energy's residential solar rebate program that helps cut down on the upfront costs of solar.
By entering your address into our solar panel calculator, you can see what other local incentives are available in your area.
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Prices based on a 5.8kW system, after 26% federal tax credit
Austin Energy offers their customers an upfront solar rebate of $2,500 when they install a qualified solar panel system. That's an awesome rebate that can substantially decrease the cost of gonig solar!
Instead of traditional net metering, Austin Energy has implimented what is called a 'value of solar' rate. The value of solar rate takes into consideration the costs and benefits of solar energy to more accurately represent the monetary value of solar power.
Instead of paying you the full retail rate of electricity for the energy your solar panels produce, they pay you the value of solar rate of $0.097 per kilowatt hour.
The federal solar tax credit is equal to 26% of the total cost of installing solar panels on your home. The amount of the tax credit is then deducted from your federal taxes. You can claim the credit over several years if the amount you owe in taxes is less than the amount of your tax credit. You can only take advantage of the federal tax credit if you pay federal income taxes.
Keep in mind that the federal solar tax credit is set to step down at the end of 2022, falling from 26% of costs to just 22%. So, the best time to go solar is now, so you can maximize your solar savings.
The answer to this question depends on your electricity usage. Generally speaking, the higher your power usage, the greater your potential savings are from installing solar.
The average monthly electricity usage in Texas is about 1,156 kWh per month. However, you are most likely using a lot more than this since this average includes small apartments and condos.
The Austin solar panel savings calculator uses our database of electric rates from local utilities to convert your monthly power bill into how much electricity your home uses. From there, the calculator can work out how many solar panels you need to offset your power usage, how much a solar system will cost based on prices of local solar companies, and the amount of money you will save on your electric bill.
(forecast avg Texas electric rates over the next 25 years)
(Savings shown after repayments of capital)
Solar panels have fallen in price by more than 80% in the last ten years. In 2021 they also remain subsidized by the 26% federal tax credit and the net metering law making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.
Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.
Check out all of the ways energy providers of can help you be more energy efficient and save money.
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: Utility incentive
Type: Net Metering
Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
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