Texas — which already leads the country in wind generation — is jockeying to become a leader in solar power, too. As Margaret outlined last week, the Texas Senate passed a bill that would increase the subsidies available for solar installations across the state. The bill, which has been forwarded to the House for approval, proposes $500 million in solar incentives and would include rebates, which would be initially set as follows:

• $2.40 per watt for residential photovoltaic (PV) systems
• $1.50 per watt for commercial PV systems
• $1.00 per watt for installations in the industrial sector

As Barron’s outlines,

For the residential customer, the rebate offered in Texas is more generous than the $1.90 per watt being offered under the California Solar Initiative. The new incentive would reduce the cost of a three kilowatt (kW) residential photovoltaic solar installation by $5,040, with the payback period being reduced from approximately 14 years to approximately nine years (our analysis only considers the new state program and existing 30% federal incentive, and ignores any benefit from county- or city-based incentives). The incentive levels will decline by at least 5% annually.

This is great news for Texans who want to go solar: the right mix of federal and state incentives can dramatically improve the return on investment for a given solar PV system. (If you’re interested in seeing whether solar makes sense for you, get started by telling us about your home or business.)

Relevant — and important for job creation and the local economy — are efforts by states to attract solar panel manufacturers. On this front, the Texas legislature has joined the likes of Tennessee, Oregon, Arizona, Virginia and others in offering tax breaks and other incentives for solar firms that choose to site facilities in the Lone Star state. Check out this brief, yet informative, installment from Green, Inc., a popular New York Times blog on energy, the environment and the financial bottom line.