We can save a lot of money with solar panels.
They help us save energy and reduce our electricity bills. It may not sound much to you, but the electricity bill can be high in states such as Texas, where ACs are on 24/7. So, any deduction is more than welcome. However, besides saving money with solar panels, one can also generate a certain income with them. And, people around Texas, as well as around other states, are starting to take advantage of this. You can do the same! Whether you have a solar installation on your residential or commercial property, you can earn that extra income by selling solar power in Texas.
Understanding the Demand for Solar Energy in Texas
The demand for renewable energy sources has seen a significant rise in Texas. With the increasing awareness of environmental issues and the effects of climate change, more Texans are looking to switch to sustainable energy solutions. Solar energy has emerged as a favorite due to Texas’s sunny climate, making it an optimal place for solar panel installation. As more residential and commercial properties begin to embrace solar energy, the potential for producing excess energy increases. This excess can then be sold back to the grid, providing a dual benefit of environmental sustainability and an additional stream of income.
Environmental Benefits and Tax Incentives
Besides the financial incentives, selling solar power in Texas also brings environmental benefits. The state has seen a decrease in its carbon footprint since more homes and businesses adopted solar energy. Additionally, the Federal Investment Tax Credit (ITC) allows homeowners to deduct 26% of the cost of installing a solar energy system from their federal taxes. This tax incentive, combined with the savings and potential earnings from solar energy, makes it an attractive option for many Texans. As the state continues to encourage the shift towards renewable energy sources, more policies and incentives can be expected in the future to make solar energy even more appealing.
Net-Metering As a Way of Selling Solar Power in Texas
If you own solar panels in Texas, either for business or for private purposes, there is a way for you to earn extra income by using net metering. When your solar panels create more energy than you can use, excess energy can be transferred to the electricity grid. Of course, to do this, the owner of solar panels in Texas must first get authorization from the utility company. If they do, a bi-directional meter will be attached to the main switchboard and keep track of all the energy you are exporting.
Keep in mind that laws about net-metering are different from state to state. This means that compensation depends on your location. Moreover, in some states, you will be added to the net-metering automatically, that is, as soon as you inform the utility company that you are using solar energy. Still, in others, you will have to get approved for this.
How Are You Compensated?
When the sun is bright outside, your solar panels will generate a ton of electricity. You will use some for yourself and export the rest to the grid. However, exporting your energy does not mean you are giving it for free. Utility companies will compensate you for the energy you give them. For instance, when the sun is not shining because of bad weather conditions or at night, you can draw that same energy from the grid without paying. So, in a way, net-metering is used for saving you money, not helping you earn it. But, not having to pay your electricity bill is still a good compensation.
Net-metering systems vary from state to state. Thus, how much money you will be able to save with solar panels largely depends on the state (and the city) you are in. In Texas, for example, you will get compensation at a wholesale rate, while in others, solar panels and the energy they produce and export are assigned a completely different value.
Solar Renewable Energy Certificate or SREC
Net-metering is a money-saving solution available to all solar panel owners. But, what about money-earning solutions?
If you want to earn money with your solar panels in Texas, you should get SREC or a solar renewable energy certificate. This certificate allows you to sell your excess energy. But, of course, you can’t sell just one watt. You have to create more than 1,000 kW-h or 1 megawatt-h. So, this SREC incentive applies only to ‘big’ solar power owners and people who live in sunny places like Texas.
However, unlike net-metering, which is possible in all USA states, earning money from SREC is not. For instance, it is not possible in Florida – a state that has a highly developed solar system. This is rather unfortunate for Floridians who have almost 360 days of summer and, thus, a possibility to earn a lot with their solar panels.
But, if your dream is to utilize your solar panels for profit, you can always hire professional movers and have those panels relocated from Florida to Texas. If you decide, with their help, you can even leave Florida to start over in Texas too! You can move to Texas from any other state and start earning extra income by selling solar power here.
Solar Installations – A Growing Trend in Texas
The trend of solar installations is not just limited to households. Many businesses in Texas have started to realize the long-term benefits of investing in solar power. These businesses not only save on their monthly electricity bills but also enjoy the positive image associated with being environmentally responsible. With Texas’s vast open lands, there’s also a growing trend of solar farms, which can produce energy at a larger scale. These farms have the potential to significantly contribute to the state’s electricity grid, further promoting the use of clean energy.
How Much Can You Earn Selling SREC?
The value of one SREC is determined by the SREC market, which, in turn, is based on supply and demand. This means that states that produce a lot of solar energy and have a lot of SRECs will price them lower. For example, the price of SREC in Texas is approximately $230.67MW/h. This is its current price, but like with all other currencies, this price may change at any minute.
The amount of 230$ may seem like a good deal, but your solar panels will have to ‘work’ for weeks or even months to generate those 1,000kW or 1 megawatt needed for just one SREC. So, from a financial point of view, you cannot earn a lot of money with this method. But, you can save a lot of money in the long run, and more importantly, you will help protect the planet and thus, gain a ton of Texas solar energy incentives. And, we can all agree that saving our planet is more important than earning extra income by selling solar power in Texas.
Selling Solar Power in Texas Explained
As you have seen, there are two methods for earning extra income by selling solar power in Texas. The first one is net-metering – perfect for those who want to save some money on their electricity bills. The second one is Solar Renewable Energy Certificate or SREC – perfect for those who live in sun-covered states and have big solar systems on their residential or commercial properties, as SREC allows them to turn their extra energy into profit. But, as we have explained, with solar panels in Texas, you can save a lot, but you cannot earn a lot. However, the government has announced many new incentives for solar panel owners, so they may help you make some more money in the future.