Report: Texas ranks 3rd for residential rooftop solar

The state ranks just 20th for per capita small scale solar however; report recommends policies for greater growth

AUSTIN, Texas — Texas ranks third in the nation for residential solar power generation, according to a new report released today by Environment Texas Research & Policy Center and Frontier Group. The report, Rooftop solar on the rise: Small solar projects are delivering 10 times as much power as a decade ago, tracks the dramatic increase in rooftop solar power over the last decade, illustrates how far we have yet to go to take full advantage of our solar energy potential, and recommends policies to keep rooftop solar rising.

“Today, in Texas you can get your energy straight from your roof,” said Luke Metzger, Executive Director of Environment Texas Research & Policy Center. “Why pay for power from a distant plant spewing pollution when we can just soak up the sun on our rooftops?”

Rooftop solar reduces dependence on fossil fuels, eases strain on the grid during periods of high electricity demand, increases resilience to threats such as extreme weather, and limits the amount of land needed to produce clean energy, all at a steadily falling cost. Small-scale solar energy, of which rooftop solar is the largest component, is growing rapidly in the United States, producing 10 times as much power in 2022 as it did a decade earlier. 

The trend holds true in Texas, where rooftop solar has taken off over the past five years. Residential solar grew 646% from 2017 through 2022, while small-scale commercial solar grew 221%. In total, small-scale solar in Texas generated 2995 gigawatt hours (GWh) of electricity in 2022. 

However, while Texas ranks high for total small-scale solar generation, on a per capita basis the state ranks just 20th, a result of failure to have a statewide solar incentive, lack of net metering, poor interconnection standards, and cumbersome municipal permitting processes. The report finds that Texas ranks in the top 10 for rooftop solar generation potential, but tapped only 1.87 percent of that potential in 2022.

Much of Texas’ growth in solar has been fueled by local incentive programs, such as those offered by San Antonio’s municipally owned utility CPS Energy. A 2022 report by Environment Texas found the Alamo City ranks 1st in Texas, and 5th nationally, for locally-installed solar.

“As the number one solar producer in Texas, San Antonio will continue leading the clean energy transition in the state,” said San Antonio Mayor Ron Nirenberg. “Equitable distributed solar generation programs will continue to be a key strategy in our effort to reduce carbon emissions and reduce energy cost burden in our city.”

Slow, costly permitting processes are a key barrier to the growth of rooftop solar. Automated permitting can help standardize permitting processes, reducing costs and shrinking project timelines while relieving some of the administrative burden that traditional permitting places on local jurisdictions. The National Renewable Energy Laboratory and the U.S. Department of Energy have developed the Solar Automated Permit Processing Plus (SolarAPP+) software to make it easier for jurisdictions to issue permits for code-compliant residential PV systems. The cities of San Antonio and Houston are piloting its use while Dallas and other cities are considering adoption.

Environment Texas also pointed to the Texas Energy Fund, which includes $1.8 billion in funding for backup power for critical infrastructure, the potential expansion of a successful pilot program to pay Texas consumers for surplus power sold to the grid, and efforts by cities such as San Antonio and Dallas to install solar on municipal buildings, as key opportunities to continue the growth of small-scale solar in Texas.

According to a February 2023, poll by the University of Houston, 64% of Texas homeowners are either somewhat or very interested in purchasing a solar energy system.

“Texas is already soaking up the benefits of rooftop solar,” concluded Metzger. “With federal tax credits in place to boost solar adoption in Texas, now is the time to lean in. Every sunny roof without solar panels is a missed opportunity.” 

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Environment Texas Research & Policy Center is dedicated to protecting our air, water and open spaces. We work to protect the places we love, advance the environmental values we share, and win real results for our environment. For more information, visit https://environmenttexascenter.org 

 

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