Save big on Solar With the AEP Texas SMART Source Solar PV Program
Want to go solar in Texas and lower your energy bills, but worried about the cost of solar? AEP Texas customers can cut $1000s off that cost! Here’s how!
AEP Texas has introduced the SMART Source Solar PV Program. It is one of the best solar incentive programs in the state to encourage its residential and commercial customers to go solar. The program supports Texans switching to solar energy by reducing upfront costs of solar by thousands of dollars. This will help plan your solar installation without stressing so much about the solar installation expenses.
Here we’ll delve into the SMART Source PV Program. We will discuss the eligibility requirements, participation criteria to help you take your first step toward solar savings.
Why is the electric power market different in Texas?
Texas’ energy market is different from other states. It is isolated from other states and is managed by the Electric Reliability Council of Texas (ERCOT). In most parts of the state, residents can choose their power supplier instead of having to purchase power from a regulated power company.
All of these reasons are why there are many electric providers in parts of Texas that offer competitive prices and/or discount programs to try to lure more customers. Aso, lyou can choose what prices you want to pay for electricity by comparing power plans. These can include net metering and solar buyback programs.
What is the AEP Texas SMART Source Solar PV Program?
As a utility serving residents and businesses throughout most of southern and western Texas, American Electric Power (AEP) supplies electricity to over 1 million customers in the state.
To help homeowners and businesses embrace solar energy in Central and North Texas, AEP is offering the SMART Source Solar PV Program. This incentive reduces the upfront cost of solar for homes and businesses in the region.
In 2024 the total incentives are offered on a first-come first-served basis. However, they are capped at $3,000 per residential installation and up to $50,000 for businesses. However, the program is capped at a total of $553,620 in incentives in central Texas and $256,264 in incentives in North Texas. So it’s imperative to sign up for the incentive quickly before funds dry out.
Residential Solar:
Under this program, residential solar customers can qualify for financial incentives depending on the planned size of their solar system. For systems less than 3 kWs AEP pays 50 cents per watt. Larger home solar systems qualify for set incentive amounts. The maximum residential rebate amount is $3,000 for a system that’s 7.5 kWs or more—up to 30 kWs.
Commercial Solar:
For commercial customers installing solar, the rebate is tiered based on system capacity. Business and industry customers can qualify for a rebate of 50 cents per watt up to 25 kWs, or up to $1,250 and 25 cents per watt for a system up to 200 kWs in size, or up to $50,000.
How do you qualify for the SMART Source Solar PV Program?
The eligibility requirements for the AEP Texas rebate program include:
Must be a commercial or residential AEP Texas customer
The application must be submitted by an AEP-enrolled solar installer in Texas. SolarSME is proud to be an AEP partner.
Incentives are only available for new, qualifying solar photovoltaic equipment that provides electricity to the customer’s premises.
The projected yearly electrical energy production of a solar electric system must be at least 1,000 kWh per kw DC to qualify for a full incentive payment.
All eligible systems must have at least 5 years of all-inclusive warranty
Portable solar systems, off-grid, or any other PV systems that do not supply power to a house or building are not qualified.
How do I enroll in the AEP Texas SMART Source Solar PV Program?
Under the program funds are granted on a first-come, first-served basis. That’s regardless of whether you’re a residential or commercial customer.
Furthermore, for residential customers, your AEP-certified solar contractor submits the SMART application after completing the solar panel installation. AEP stipulates that your installer must watch funding levels carefully to ensure funds are still available when your system is completed.
Also, for commercial solar customers, the solar installer must submit application materials before installation. This includes customer information, expected install date, technical details, and incentive amount requested by the program manager. Upon verification and approval, the manager will inform the solar provider if they qualify for the incentive. AEP says the review time is 2 weeks.
Are there any limitations to participating in the AEP Texas SMART Source Solar PV Program?
Residential customers can only qualify for the incentive for each ID/interconnected meter one time. As of 2022, AEP began checking for previous solar program participation and rejecting incentive applications for newly created ESI-IDs that previously enrolled and received an incentive.
When does the AEP Texas SMART Source Solar PV Program open for registration?
The AEP SMART incentive program opens on July 1, 2024. Projects must be completed by November 30, 2024. However, the utility has the authority to expand deadlines on customers and solar installers if the funding is not fully utilized.
However, if a project is finished after time, AEP can decrease or remove the reserved incentives. For commercial projects projects must be completed within four months of pre-approval to avoid losing some or all of the incentive.
Moreover, residential projects don’t have a pre-approval stage. Funding requests and offers for residential projects are made after the project is finished. All projects must be completed and all necessary data and paperwork must be fully uploaded by November 30, 2024.
In a nutshell, switching to solar in Texas is beneficial for both homeowners and commercial customers as it provides energy independence, can provide uninterruptible power, and can lower energy bills. Also, Solar rebates in Texas and financial incentives like AEP Texas SMART Source Solar Program help make solar installation affordable for those who are ready now.
If you are ready to take you home or business solar and want to learn more about your options reach out to SolarSME, an AEP solar provider and plan on saving big on solar now!
