Law streamlines permitting for residential solar and storage as federal incentives expire
AUSTIN, Texas – Starting Monday, September 1, Texas homeowners will find it easier and faster to install solar panels and batteries thanks to Senate Bill 1202. The bipartisan bill removes bureaucratic permitting hurdles, helping families save money and strengthen their energy security.
With federal tax credits for solar and battery systems recently phased out, measures that cut costs and simplify the installation process are more important than ever for Texas families looking to invest in clean, resilient energy.
“By streamlining solar and battery installations, this law empowers Texans to strengthen their homes against outages, cut energy costs, and lower emissions—building a cleaner, more resilient energy system for everyone,” said Luke Metzger, executive director of Environment Texas.
According to a March report by Environment Texas Research and Policy Center, the Texas Solar Energy Society and other groups, in many Texas communities it can take days, weeks or even months to get approval for small-scale, straightforward rooftop solar or battery installations.
SB 1202 tackles this by allowing licensed third-party professionals — such as engineers and electricians — to review plans and conduct inspections for solar and backup power systems.
Highlights of SB 1202:
- Faster Permits: Third-party professionals can review and approve plans, cutting down on municipal delays. Third parties can use automated solar permitting software.
- Immediate Construction: Homeowners can begin building once a third-party submits approval to regulators.
- Transparency: Regulatory authorities must post laws, rules, standards and fees online or provide them electronically.
- Accountability: Reviewers are responsible for negligence, while local governments are protected.
Making solar permitting quicker and simpler can have a big impact. An analysis by Brown University’s Climate Solutions Lab found that if Texas authorities or approved third parties used automated permitting software such as SolarApp+, it could reduce the cost of rooftop solar systems in the state by $2100 in 2030 and $4900 by 2040, and save families over $3,500 a year on their utility bills.
Authored by state Sen. Phil King (R) and sponsored by state Rep. Jay Dean (R), SB 1202 passed with broad bipartisan support, and was signed into law by Governor Abbott in July.
Texas ranks third in the nation for total residential solar power generation but just 20th for per capita small scale solar. The discrepancy is the result of a failure to have a statewide solar incentive, lack of net metering, poor interconnection standards, and cumbersome municipal permitting processes. Texas ranks in the top 10 for rooftop solar generation potential, but tapped only 1.87 percent of that potential in 2022.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.
“When it comes to Texas’s solar energy potential, the sky’s the limit,” said Metzger. “Our state legislators recognized both the opportunity in front of us and their constituents’ desire to take advantage of it. With this new, better system, our state’s energy security and independence can grow to new heights.”
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