Fort Worth, TX Solar Panels

Texas offers a property tax exemption for homeowners who install solar or wind-powered energy devices on their property. This exemption prevents your local appraisal district from adding the value of your solar or wind energy system to your property’s assessed value for tax purposes. Without this exemption, installing solar panels could increase your home’s appraised value and result in higher property taxes. With the exemption in place, you won’t pay additional property taxes based on the added value from your renewable energy system.

To qualify for this exemption, you must own the solar or wind-powered energy device and it must be installed on property you own in Texas. You’ll need to apply with your local county appraisal district using Form 50-123 (Exemption Application for Solar or Wind-Powered Energy Devices). The general deadline for filing exemption applications is before May 1st, though you should contact your local appraisal district to confirm specific deadlines and requirements. This exemption helps make solar energy more affordable by ensuring your investment in clean energy doesn’t result in higher annual property tax bills. Since property tax is assessed and administered locally in Texas rather than at the state level, it’s important to reach out to your county appraisal district for guidance on the application process and to verify your eligibility.

Net metering and net billing policies in Texas vary significantly by utility provider, as the state operates a deregulated electricity market in most areas. Unlike traditional net metering where excess solar energy is credited at the full retail rate, most Texas utilities offer net billing programs that credit exported solar energy at lower wholesale rates, typically ranging from 3 to 8 cents per kilowatt-hour. In deregulated areas served by transmission and distribution utilities (TDUs) like Oncor, CenterPoint, AEP Texas, and TNMP, homeowners must work with a Retail Energy Provider (REP) like Shell Energy to receive export credits, currently set at 7 cents per kWh as of April 2024.

The financial benefit depends on your specific utility or REP. Some providers like Grayson Collin Electric Cooperative offer true 1:1 net metering where credits roll over indefinitely, while others like CPS Energy (San Antonio) and Austin Energy provide monthly credits that expire each December without payout. Most cooperative utilities and municipal providers offer monthly settlement programs where excess generation is credited at avoided cost rates (typically 5-8 cents per kWh) that apply only to the current month’s bill. It’s important to note that several utilities charge additional fees for solar customers, such as Shell Energy’s $4.95 monthly charge, CoServ’s $15 monthly customer charge increase, or Tri-County Electric’s $12 monthly distributed generation fee.

Eligibility generally requires being a customer of the specific utility and installing an approved solar system that meets interconnection standards. Each utility has its own application process and technical requirements for connecting your solar system to the grid. Homeowners should carefully review their utility’s specific policy before installing solar, as the economic benefits vary widely across Texas—from excellent programs with year-round credit rollover to less favorable options where excess monthly generation receives no credit at all. The key consideration is understanding whether your area offers true net metering, net billing with export credits, or a buy-all/sell-all arrangement, as this significantly impacts your solar investment’s financial return.