Record Growth and Legislative Hurdles
2024 was a milestone year for the Solar industry in Texas, with record-breaking demand and installations, particularly in utility-scale projects. As the industry gears up for 2025, maintaining this momentum remains a key focus. However, challenges loom in the form of legislative changes that could complicate solar energy adoption. The upcoming 89th legislative session, starting January 14, brings opportunities to advocate for supportive policies, but also the risk of measures that could hinder solar growth, impact grid reliability, and increase costs for solar adopters.
The Texas Solar Energy Society (TXSES) has set its sights on influencing legislative outcomes through education, collaboration, and policy advocacy. Working alongside legislators, stakeholders, and business partners, TXSES aims to track, support, or oppose bills that directly impact the solar sector.
Key Bills Under Consideration
Several notable bills are on the table this session impacting the Solar Industry. HB419, filed by Rep. Terry Meza, proposes adding ad valorem taxes on homeowners with solar installations—a measure opposed by solar advocates due to its potential to disincentivize adoption. Conversely, HB431, introduced by Rep. Philip Cortez, supports homeowners’ ability to use solar roof tiles, providing flexibility for solar installations in HOA-regulated communities.
HB553, submitted by Rep. Jared Patterson, presents a contentious requirement for renewable energy projects to obtain permits and notify neighbors within a 25-mile radius. Efforts are underway to exclude small-scale solar installations from this bill to protect homeowners. Additionally, SB1212, sponsored by Sens. Nathan Johnson and Sarah Eckhardt, aims to enhance the interconnection and integration of distributed energy resources, including small-scale storage systems.
A standout initiative in the solar industry is being led by Sen. Judith Zaffirini, who is drafting consumer protection legislation to regulate solar sales and financing. This measure seeks to safeguard consumers from unethical practices while maintaining fairness for ethical solar installers. Another bill from Sen. Zaffirini focuses on improving solar financing options, addressing concerns raised by lenders in previous sessions.
Efforts Beyond Legislation
Beyond legislative advocacy, TXSES is collaborating with the Public Utility Commission of Texas (PUC) to streamline utility interconnection rules for distributed solar systems. Simplifying this process will not only accelerate access to energy savings for homeowners but also reduce installation costs, benefiting consumers and supporting the industry’s growth.
The solar industry’s future in Texas hinges on navigating these legislative and regulatory challenges effectively. With significant bills under discussion and a push for streamlined regulations, 2025 is shaping up to be a pivotal year for advancing solar energy in the state.
