9 Important Answers to Texas Solar Questions
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San Antonio is a unique city in the solar landscape of Texas. Learn how the city’s role in solar affects you as a citizen in search of renewable energy solutions.
1. How Does Texas Electric Deregulation Apply To Solar?
Texas Municipal Utility Deregulation
If a municipal can compete, the governing body may decide to enter the deregulated market. Once a municipal utility has decided to enter the market, the decision is permanent.
Texas HOAs (CO-OP) and Deregulation
RTO’s Role in Deregulation
2. Can You Choose a Different Utility Provider in San Antonio?
Because San Antonio has a municipal utility, they are exempt from deregulation. As of 2018, San Antonio’s utility, CPS Energy, has not decided to enter into the competitive market.
Not Every Utility Allows Solar
Solar for CPS Customers
Solar Options for GVEC Customers
People that live in the GVEC service area, which borders San Antonio, also don’t have the option to choose another utility company.
As long as your solar array is less than 20 kW then GVEC customers can use any solar installer. All you need to do is get the installation approved by GVEC for net metering. After your solar installation gets approved, and inspected by GVEC, your system is good to go.
3. Why Does Metering Matter To San Antonio Citizens?
Metering allows customers and the utility to gauge how much energy is being consumed. Without a metering system, the utility would not be able to accurately bill their customers. There are a couple of different metering systems and terms.
The Difference Between Net Metering and Feed-In Tariff Metering
Time of Use Metering, Value of Solar Tariff and Excess Generation
Time of use metering requires the install of a smart meter. These meters measure how much electricity is being used throughout the day. This allows utilities to charge or pay customers different rates based on their time of use or generation.
A Value of Solar Tariff (VOST) replaces net metering. Those that use this tariff use an algorithm to find what the value of each watt of solar is. The utility then pays this rate to the solar customer for their excess energy. This rate is periodically reevaluated.
CPS Energy Metering
In San Antonio, CPS Energy has a net metering policy for its solar generation customers. Their program credits excess electricity at the avoided cost rate.
The avoided cost rate is the amount of estimated savings from not having to produce your power. This amount is less than the rate their customers pay for electricity.
GVEC Metering System
Right next to San Antonio is Gonzales. GVEC, the Guadalupe Valley Electric Cooperative, services this area. All individuals that live in the GVEC service area can only get their electricity from GVEC.
GVEC allows its customers to get solar if they choose. Customers interested in solar have two options. They can either opt into the co-op’s community solar program or have their array metered by GVEC. Customers get paid for their excess generation at GVEC’s current renewable energy rate.
4. What Renewable Energy Standards and Incentives Does Texas Have?
A renewable energy standard is a goal made for renewable energy generation. Most states have renewable energy standards. Periodically, however, new standards are set. Often utilities get penalized if they don’t reach the projected goal for that year. This gives utilities an incentive to pay their renewable generation customers.
Texas’s Renewable Portfolio Standard
In 1999 Texas created a renewable generation requirement of 5,880 megawatts by 2015. This standard was reset to 10,000 megawatts by 2025. Although since this change Texas has doubled its goal, a new one has not been implemented.
Until 2019, the Texas Public Utility Commission (PUCT) will award one renewable energy credit (REC) for every megawatt of renewable energy they claim. Retail entities that don’t meet the state standards are fined $50 per megawatt.
A megawatt (MW) is 1,000,000 watts of electric current or 1,000 kilowatts. Megawatts are used to measure large-scale electric generation.
Within each state’s renewable portfolio are specific renewable generation goals called carve-outs. Texas does not have a mandatory solar carve-out. It does, however, have a voluntary 500 MW non-wind renewable generation carve-out. All non-wind renewable generations get double RECs.
CPS Energy’s Renewable Energy Standard
CPS Energy has a goal to reach 20 percent of its electrical peak demand with renewable energy by 2020. This is equal to 1,500 Megawatts. In 2015, CPS had 1,193 MW with an agreement in place to develop another 300 MW.
Texas and San Antonio Solar Incentives
Regardless of the lack of state and utility renewable energy standards, solar incentives are still available to Texans.
Federal Solar Tax Credit
The federal tax credit, also known as the investment tax credit (ITC), covers up to 30 percent of your array. This credit is a dollar-for-dollar credit, which means that you will get the full amount.
It is, however, a credit, and so you will only be able to use it to decrease the amount of federal taxes you owe. If you do not owe taxes, you can not take advantage of this credit.
Texas Solar Property Exemption
When you purchase solar, it increases the value of your home. This is great when you go to sell your home or refinance it, but can suck when it is time to pay property taxes.
Thankfully, Texas understands how burdensome this can be. Texans can get a 100 percent property tax exemption for the added value of their array.
CPS Solar Incentives
CPS will pay their qualifying customers up to 50 percent of the cost of their array. If you use a local solar installer, you can get $0.60 per watt of alternating current (AC) your system can produce.
You can get another $0.10 per watt of AC if you use locally made inverters and panels for your install. If you choose to use an approved, non-local installer, then your incentive decreases from $0.60 to a max of $0.45 per watt of AC.
GVEC Solar Incentives
Guadalupe Valley Electric Cooperative has incentives in place for PV systems as well. With the solar arrays, you are able to get $0.75 for every watt of electricity your system can produce. To acquire this rebate, you need to be a GVEC member.
The solar customer needs to own the system, use an approved installer and have it warrantied. If you decide to remove your system in less than five years, you will get penalized. You will receive a bill for a portion of the rebate if removed early.
5. Who Can Qualify for Solar in San Antonio Texas?
Unfortunately, not everyone can qualify for solar. Knowing what is required to get a solar array will help you to determine if it is even worth your time to investigate it further.
Need To Own Your Home
Owning your home is very important to the process of installing a solar array. If you don’t own your home, the owner needs to give permission for the installation.
Trees Near Your Home
Everyone loves a good, tall tree to shade you on a sunny day. If this tree is also shading the south pitch of your roof, however, you could be in trouble. Solar panels need sun exposure, so shading them will decrease your production.
Space for a Solar Array
Every panel is a little different, Go Solar Group’s panels are about 65 inches by 39 inches. This is equal to 5 feet by 3 feet. How many panels you will need for your home depends on the amount of energy you use in a year and the wattage of the panel.
Credit for Solar
For many, the price of solar is not something they can pay for in one lump sum. Solar companies are aware of this. As a result, they have created relationships with financing companies they trust.
If you have a credit score that is in the 700’s, or higher, you should qualify for any solar loan. If, however, you have a credit score that is in the high 600s, it is still worth looking into. If you aren’t sure that your credit will qualify, you can call and find out.
Owing Taxes Is Important for Solar
Because of the federal solar tax credit, you can get up to 30 percent of your system covered. This is equivalent to thousands of dollars. People that don’t owe taxes, unfortunately, can’t qualify for this incentive. Because it is such a big chunk of the cost, we don’t recommend getting solar unless you can qualify for this tax credit.
Minimum Usage Is Needed for a Solar System
In order for both you and the solar company to benefit, you need to use a certain amount of electricity in a year. Solar companies would cease to exist if they couldn’t afford to pay their expenditures. Go Solar Group’s minimum usage for a solar array is 6,000 watts over a year or an average of 500 watts a month.
Roof Structure Is Important
Not every roof is able to support the weight of a photovoltaic system. When you go to set up a quote, the solar representative should ask about your roof type and how old it is.
Before your system approval, someone should come and survey your home to make sure it is safe to install on. Go Solar Group can install on most roof types. However, the age of the roof might mean that you will need to get it replaced before you can get solar.
6. How Does San Antonio Texas Weather Effect Solar Panels?
Importance of Peak Sun Hours
Peak sun hours are the average hours in a day that the sun gives off the most radiation. Having more peak sun hours is vital to high solar production.
In Texas, the average peak sun hours range from 4.5 to 8 hours a day. The national peak sun hours range between 0.5 and 8.5 hours a day. San Antonio doesn’t have as many peak sun hours as the western side of Texas, but they still have between 5 and 6 hours.
Texas Humidity and Solar Panels
Areas with high humidity should expect the total power output of their array to decrease by 10 to 20 percent. In San Antonio, only three months of the year have muggy conditions less than 10 percent of the time.
Cloud Coverage and Solar Panels
When you block the sun with cloud coverage, some rays still get through. You just don’t get as much power from your panels. Although there are only two months in Texas with clear skies, the chance for extreme cloud coverage isn’t huge.
The cloudiest day of the year in San Antonio experiences extreme cloud coverage less than 50% of the time. The peak sun hours in Texas show that even though there is cloud coverage you can still get good sun exposure.
Moonlight’s Effect on Solar Panels
Although it is true that the moon does reflect rays from the sun, these rays aren’t as strong. Panels will collect these wavelengths from the moon. However, they don’t produce enough electron movement to create a current. So, although the thought of lunar panels is great, they aren’t a reality yet.
7. Do Texas Solar Homes Have a Resale Value?
It is hard to put a value on your home because there are so many variables that go into it. When an appraiser evaluates your home, they take into account the square footage, amenities, number of bedrooms and bathrooms and the functionality of the floor plan.
These factors are then compared to homes in the area that are similar to it on the market. If you have features that other homes on the market don’t have, they may not be accurately appraised. Value per watt is the best metric for estimating the value of solar. Unfortunately, many lenders require appraisers to use the sales comparison approach.
In the end, what the buyer feels your panels are worth will make or break the sale. In 2016, the Appraisal Journal found that most arrays increase home value by $3.78 a watt.
Maximize Solar Savings
If all you did was get solar, you would save money. If you want to optimize your solar savings, however, you should consider a couple of changes. The best way to utilize your solar array is to do as many high-energy activities as possible when the sun is shining.
Some of these activities include running the dishwasher and laundry machines. If you have a delay timer on your appliances, you can set them to turn on in the middle of the day. If you don’t have a delay timer you can turn on these appliances during your lunch break.
Water fountains and pool/hot tub pumps also require quite a bit of energy. If you want to lower your water pump energy consumption, consider investing in a couple of items.
A pool timer, a correctly sized pump and an energy-efficient motor will save you hundreds in electricity bills. You need to circulate your water, but when and how you do it can change how much you are paying.
Upgrades That Coincide With Solar Panels in San Antonio
There are certain upgrades that will save you money on your power bill. HVAC is the system that gives you control over the heating and cooling of your home. Make sure you replace your old system with new energy-efficient equipment. If you want even greater control over your heating and cooling you can install a smart thermostat.
Washing machines, faucets, fridges and microwaves all use energy. Getting appliances that are energy efficient when your old ones die will allow you to save more in the long run.
Making sure that your home is well-sealed and insulated will decrease your power bill. You can also install energy-efficient windows or add low emissivity coating. This will help your home keep its temperature.
Changing your light fixtures will also help you save more. Viribright found that LED bulbs are more efficient. They also last longer than the average incandescent or CFL bulb.
Non-Cost Changes That Maximize Solar Production
There are lots of no-cost changes you can make that will allow you to optimize your solar power. You can turn the light off when you aren’t in the room and take shorter showers. Or you can unplug electronics when you aren’t using them. Although you may have hit that power button, electricity is still flowing as long as it’s plugged in.
You can deselect the dry heating button on your dishwasher — or use cold water more frequently and add a dry towel to each load you put in the dryer. When you leave for long trips, you can turn off the air conditioner. You can also change the thermostat to an energy-conserving temperature while you are out.
8. What Impact Do Solar Panels Have on the Environment?
When you use your solar panels, you are using clean energy that isn’t harming the environment. However, dangerous chemicals are produced as a result of photovoltaic manufacturing. This is a concern for many, but it may not be as bad as it has been made to seem.
The US Department of Energy found that solar panels take between one to four years of use to pay back the pollution that was emitted during the manufacturing process. Solar customers avoid emitting sulfur dioxide, nitrogen oxide and carbon dioxide for 25 plus years.
PV Recycling Options
Recycling your panels is essential to prolonging the life of our planet. Unfortunately, The United States doesn’t have mandatory panel recycling. We do, however, have recycling options and, as time goes on, we will continue to improve.
9. What Should You Look for in a San Antonio Solar Installer?
When looking for a quality solar installer, you will want to make sure that they are NABCEP certified. NABCEP installers follow solar safety regulations and hire knowledgeable employees.
Good customer reviews are also a sign that the installer of choice is a good one. Taking a look at the Better Business Bureau will give you an idea of how that business is doing.