Senate Approves Major Solar Bill

AUSTIN – Today, with a vote of 26 to 4, the Texas Senate approved legislation to create a statewide solar rebate program to make it easier for homeowners and businesses to install solar panels. SB 545 by Sen. Troy Fraser would create a half-billion dollar fund to pay for up to one-third the cost of installation of solar technologies. Combined with federal tax credits of 30%, the bill would put solar within reach for thousands of Texas families and could lead to the installation of up to 1000 megawatts of solar within ten years.

“This bill would put Texas on the map when it comes to solar power,” said Environment Texas Director Luke Metzger. “We have the sun, we have the technological know-how. Now, we’ll have a market that can make Texas a world leader in solar power.”

The bill also requires homebuilders to offer solar as a standard option in developments with 50 homes or more, creates a loan program for solar on schools, and prohibits homeowners associations from blocking solar. Up to 70% of the funds could be used for utility-scale solar projects. The solar fund expires after five years, unless the Public Utilities Commission determines that a “substantial amount of manufacturing of solar generation products located in Texas after the initial five-year program”, in which case the program could be extended for another five years and another $500 million.

“Texas has tremendous potential to develop solar technologies,” said Metzger. “With our sometimes-almost-unbearable amount of sunlight, chemical companies producing solar-grade silicon, and semiconductor companies producing photovoltaic equipment, Texas could become a world solar leader, creating thousands of manufacturing, engineering, and installation jobs and attracting billions in investment to the state”. 

Solar technologies have moved rapidly to becoming a mainstream electricity source. Yet, despite this progress, the cost of a home or commercial solar system in Texas has not yet fallen to the level where it makes long-term financial sense for a homeowner or business to install a system without government incentives.  However, according to the U.S. Department of Energy, solar photovoltaics are expected to reach parity with traditional electricity sources within the next five years.

“Texas can have a great deal of control over how rapidly solar power becomes cost-competitive., “ said Metzger. “And, by getting in on the ground floor of this new market, Texas can also benefit economically. While government incentives can increase Texas’s installed solar capacity, an even better reason for them is that they can push down the cost of solar in the long run, to the point where incentives are no longer needed.”

The House Energy Resources committee is expected to soon consider legislation by Rep. Swinford that would create a solar rebate program to install 3000 megawatts of solar by 2020.