7 Great Reasons to Take Your Business Solar in Texas

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Last Updated on March 18, 2024 by bhanu prakash

7 Great Reasons to take your Business to Solar in Texas

Want your business to have energy independence in Texas and ensure you have access to electricity in a blackout? Taking your business solar in the Lone Star State is your ultimate solution.

SolarSME take your business solar

Switching to commercial solar power in Texas is an increasingly compelling choice for businesses seeking energy independence, uninterruptible power, and cost-effective energy solutions. Texas is the 4th sunniest state and is an ideal environment for solar energy to power commercial ventures.

As the demand for clean and renewable energy grows, businesses recognize the multiple benefits of installing solar panels. They produce cost savings and a sustainable way for a company to control energy costs while reducing their dependence on the grid. Plus, taking advantage of state incentives will help make the switch less expensive than you’d think! With all these factors, the shift towards commercial solar will not only align with your corporate social responsibility but it also positions your business at the forefront of the rapidly evolving energy landscape in Texas.

In this article, we’ll explore 7 compelling reasons why investing in a solar system for your business in Texas is not just a choice, but a smart, forward-thinking decision.

What are the top 7 reasons to switch to commercial solar in Texas?

Switching your business to solar is a smart decision in Texas. From financial savings to power during blackouts and environmental benefits, the advantages are clear. Here are 7 great reasons to go solar explained in simple terms:

1.    Energy Bill Reductions

By installing solar panels on your Texas businesses, you can power your business partly with the electricity you generate each year. This lowers the amount you pay for power from a retail electric supplier and all the extra fees they add on. You are not dependent on their electricity alone and are not as subject to price rises because you own the generation capacity from your solar panels. The most effective option for your business to significantly reduce its electricity consumption is to install commercial solar panels.

2.    Reducing Dependence on the Texas Electric Grid

Switching your business to solar power is a strategic move that not only fosters sustainability but also mitigates dependence on the Texas electric grid and the ERCOT delivery system in the state. Embracing solar energy enhances resilience, reduces costs, and contributes to a greener, more self-reliant business model.

7 reasons texas
3.    Lower Extra Charges

The demand charge fee on commercial electric bills-contracts can make up between 30 and 70 percent of the total utility bill alone in Houston and adds to high prices in other areas in the state as well. Most people are not fully aware of this frighteningly high demand charge, which makes electricity more expensive at certain times. Solar will significantly reduce your demand charges by charges producing the most energy during peak demand periods, thereby lowering your peak demand energy use, and it can help your business achieve getting to a lower charge rate tier. 

A solar installation offers significant energy bill savings by simply cutting back on your business’ demand fees. Large industrial establishments are especially well-suited for solar electricity because these enterprises frequently experience exceptionally high demand charges and also have plenty of rooftops, parking areas, or other spaces ideal for solar panel installations. Learn more here about how solar reduces demand charges in the Houston area.

4.    Energy Independence

Most businesspeople who switched to solar power state that energy independence is a huge benefit. Once you invest in a solar energy system, you have the freedom to control your energy use, and that can even include the ability to sell excess energy back onto the grid when rates are highest.

Storms can cause power disruptions in some places. If you have a power backup system installed with your solar system, it will keep your business operating no matter what happens to the electric grid.

5.    Boost Your Business Property Value

Your property and business become more appealing to potential purchasers if it has a solar system installed. That makes it easier to value both at higher prices if you’re interested in selling either the commercial solar property or the business itself.

6.    Solar Tax Benefit

Businesses that use solar energy can take advantage of considerable federal solar tax credit benefits offered by federal, local, and state governments. By providing incentives, more residences and businesses can switch to solar power, which eases the burden on the grid.

7.    Improve Your Brand Image

Your company’s reputation among prospective clients is important. Choosing to go solar at your business is one way to enhance PR and brand impression. Clients and prospective customers will see you as socially responsible, fiscally smart, and ecologically aware.                                                 

What incentives are available to install commercial solar panels in Texas?

These solar rebates and incentives may help your business go solar in Texas. 

Solar Incentives

Solar Investment Tax Credit (ITC):

  • Description: The federal government provides a tax credit for businesses investing in solar energy systems.

  • Benefit: ITC is a 30% tax credit on the total cost of solar installation. This credit is scheduled to decrease in the coming years, so it’s advisable to act now to maximize savings.

  • Eligibility: Open to commercial entities with solar installations.

Texas Solar Property Tax Exemption:

  • Description: Exemption of additional property taxes for the added value of solar energy systems.

  • Benefit: Though solar adds value to property this exemption means businesses don’t have to pay for that extra added value, making solar investments more financially attractive.

  • Eligibility: Commercial properties with solar installations.

Solar Production-Based Incentives:

  • Description: Some utilities or state programs offer incentives based on the energy production of the solar system.

  • Benefit: Some utilities offer financial rewards for the actual energy generated by your solar installation.

  • Eligibility: Varies by utility or program. Typically, open to commercial solar projects.

PACE Financing:

  • Description: Property Assessed Clean Energy (PACE) programs enable businesses to finance energy efficiency and renewable energy projects through an assessment on their property.

  • Benefit: Access to low-cost, low-interest rate, long-term financing for solar installations with repayments tied to property tax assessments.

  • Eligibility: Depends on local PACE program availability.

Federal Modified Accelerated Cost-Recovery System (MACRS):

  • Description: Accelerated depreciation schedule for solar property.

  • Benefit: Businesses can recover the cost of solar property more quickly through depreciation deductions.

  • Eligibility: Commercial entities investing in solar energy property.

Texas Renewable Energy Credit (REC) Programs:

  • Description: Some utilities or independent programs may provide financial incentives through the purchase of RECs.

  • Benefit: Generate revenue by selling the environmental benefits associated with your solar energy production. The environmental attributes of a solar system are directly tied to the electricity it generates. As solar systems produce clean energy, they contribute to a reduced carbon footprint, fostering environmental sustainability.

  • Eligibility: Commercial solar systems producing RECs.

USDA Rural Energy for America Program (REAP):

  • Description: Provides grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems.

  • Benefit: Financial assistance for solar projects in rural areas.

  • Eligibility: Rural businesses, including agricultural operations.

Local Utility Solar Incentives:

  • Description: Check with local utility companies for specific solar incentives they may offer.

  • Benefit: Additional rebates, performance-based incentives, or discounts on solar installations.

  • Eligibility: Varies by utility provider.

Why your business should go solar in Texas?

In Texas, with abundant sunshine and long days, installing solar was always a wise decision. These days government initiatives, tax benefits, and other incentives make it an especially smart investment. Although Texas doesn’t have a state-wide solar incentive program, some local governments offer incentives. Net metering is another way to offset the cost of your commercial solar investment. Essentially, you sell the extra energy your solar system generates to the electric grid. This extra electric production sold to the grid will further reduce your company’s electric bills and help you get a quicker return on investment.

By adding solar panels, you raise the value of your property, save money on energy costs, and lower your carbon footprint. Incentives from the state, such as exemptions from property taxes and sales taxes, further lower the cost of solar energy. Solar panels are also a fantastic way to draw potential business investors and buyers to your business. Considering all of these factors, installing solar panels for businesses in Texas is a more than worthy investment!

To learn more about installing solar on your business in the Lone Star State, click here.

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