Texans are grappling with soaring electricity rates alongside intense heat waves and electricity shortages, showing no signs of abating. Discover how much your energy bills may rise and how adopting solar power can empower you to take control.
Rising Rates Across Texas Cities:
- AUSTIN: Austin Energy has approved a base rate increase of $9 starting next year, in addition to a $15 hike implemented this fall, totaling $24 more per month—which translates to nearly a $290 increase annually for the average resident!
- DALLAS: In September 2023, Oncor raised its rates by an average of 17%, approximately $15 more monthly for typical residential customers, driven by infrastructure investments and increased costs for transmission and distribution services.
- HOUSTON: CenterPoint’s current rate now stands at $5.46/kWh, an increase of 1.7 cents/kWh since March 1, 2023, primarily due to a 46.5% jump in Transmission and Distribution charges in September.
- SAN ANTONIO: In Texas New Mexico Power’s service area, the TDSP charges have also risen by 1.5 cents/kWh, leading customers using 3,000 kWh of electricity to see an extra $45 on their bills.
The Bright Side: Harness the Power of Solar
Texas is excellently positioned to capitalize on solar energy, which can offer several advantages:
- Reduced Energy Expenses: Solar panels can produce sufficient power to meet your home’s needs, decreasing your reliance on conventional utilities and lowering monthly bills.
- Fixed Rates: With solar, you can secure your energy rates for years, shielding yourself from future price increases.
- Increased Independence: Generating your own electricity makes you less reliant on the grid, enhancing resilience against outages.
- Environmental Benefits: As a clean and renewable source, solar power helps reduce your carbon footprint and protect the environment.
Texas Electric Grid Budget Increase Approved
The Public Utility Commission of Texas has authorized a 40% budget increase for the Electric Reliability Council of Texas (ERCOT)—nearly $119 million added to its current budget. This funding comes from higher fees imposed on companies selling power to consumers. The increase is necessary to comply with new regulations, employ more staff, and address past reliability issues plaguing the Texas power grid.
The typical residential customer may face less than a 20-cent increase per month due to these fees. However, many critics argue that raising costs amid existing high energy expenses is burdensome for consumers.
A practical way for consumers to reduce electricity bills is through solar, as solar panels convert sunlight into power, lessening your need to draw from the grid.
Is Solar Power a Worthwhile Investment in Texas?
Absolutely! With solar incentives available and the potential for reduced electric bills, investing in solar panels can yield a favorable return while supporting a sustainable future.
Exploring Solar Incentives in Texas
Texas provides various incentives for homeowners and businesses, including:
- Federal Solar Tax Credit: Offsets 30% of your solar system cost.
- Sales Tax Exemption: Solar panels and equipment are exempt from sales tax.
- Property Tax Exemption: Your solar system’s value doesn’t affect your property tax assessment.
- Net Metering: Utilities may buy excess electricity generated by your solar system at retail rates.
Potential Savings with Solar Power
Your savings with solar depend on factors like energy consumption, solar system size, and utility rates. Many homeowners can expect substantial savings on their energy bills. For instance, Freedom Solar customers financing an 8 kW Maxeon residential system pay around $138 monthly—excluding local rebates and tax incentives—with some paying as low as $83!
Taking the First Step Towards Solar Power in Texas
Switching to solar is a smart investment for Texas homeowners and businesses, given its abundant sunlight and beneficial solar buyback programs. If you’re interested in going solar, consult local installers and utility companies to explore your options.
Freedom Solar is ready to assist you in evaluating your property and energy needs to create a tailored solar solution, managing the necessary permits and approvals for installation.
Contact us today at (800) 504-2337 or fill out our online inquiry form to learn how we can help you cut energy costs.