{"id":11840,"date":"2025-07-22T18:54:41","date_gmt":"2025-07-22T23:54:41","guid":{"rendered":"https:\/\/www.texaselectricityratings.com\/blog\/?p=11840"},"modified":"2025-07-23T17:17:30","modified_gmt":"2025-07-23T22:17:30","slug":"new-law-ends-energy-efficiency-tax-credits-for-texas-homeowners","status":"publish","type":"post","link":"https:\/\/www.texaselectricityratings.com\/blog\/new-law-ends-energy-efficiency-tax-credits-for-texas-homeowners\/","title":{"rendered":"New Law Ends Energy Efficiency Tax Credits for Texas Homeowners"},"content":{"rendered":"\n<h2>Do Energy Credits Still Matter?<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-medium\"><img loading=\"lazy\" width=\"300\" height=\"200\" src=\"https:\/\/www.texaselectricityratings.com\/blog\/wp-content\/uploads\/2025\/07\/tax-credits-energy-upgrades-TX-300x200.jpg\" alt=\"Energy efficiency tax credits are now set to end this year. Learn how this could affect Texas electricity rates next year.\" class=\"wp-image-11848\" title=\"Do Energy Credits Still Matter?\"\/><figcaption><center><em>Find out why tax credits for those big energy efficiency upgrades to your home are ending. Learn how changes to renewable energy could affect your Texas electricity rates.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n<p>Texas homeowners recently lost key energy efficiency tax credits when the new One Big Beautiful Bill (OBBB) became law. This change affects the <a href=\"https:\/\/www.texaselectricityratings.com\/power-to-choose\/deals\" target=\"_blank\" rel=\"noreferrer noopener\">power to choose<\/a> how you upgrade your home\u2019s energy efficiency. These credits helped cover costs for insulation, efficient windows, and HVAC systems. Without them, homeowners face higher upfront expenses. Meanwhile, power prices have <a href=\"https:\/\/www.kiplinger.com\/personal-finance\/savings\/electricity-costs-are-surging-how-to-save-money\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">risen about 24%<\/a> from 2021 to 2024, upping monthly energy bills overall. That is why energy tax credits matter now more than ever.<\/p>\n\n\n\n<h3>Energy Efficiency Tax Credits Affects Homeowners<\/h3>\n\n\n\n<p>Under OBBB, credits like Section\u202f25C and 25D of the Internal Revenue Code will expire at the end of 2025. These credits cover up to 30% of upgrade costs. Starting next year, homeowners must pay full price for projects. Forgoing upgrades means your home will leak air and cost more to cool and heat. Upgrading your home not only saves money but also increases its comfort and can boost its value.<\/p>\n\n\n\n<p>Since these tax credits expire at the end of 2025, people should plan upgrades soon. Waiting too long could mean missing out on valuable savings and paying full price for energy upgrades. Acting now helps lock in benefits while they last.<\/p>\n\n\n\n<h3>Section\u202f45Y\u2019s Impact on ERCOT<\/h3>\n\n\n\n<p>The new law also changes Section\u202f45Y, which affects wind and <a href=\"https:\/\/www.texaselectricityratings.com\/solar\" target=\"_blank\" rel=\"noreferrer noopener\">solar power<\/a>. This tax credit helped drive green power projects in Texas. <a href=\"https:\/\/www.ercot.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">ERCOT<\/a> relies on those projects to balance the grid. Without them, Texas may face more power shortfalls during peak demand. So, energy efficiency tax credits don\u2019t just help homes; they help the whole grid stay stable.<\/p>\n\n\n\n<h3>Battery Storage, Energy Tax Credits, and the New Law<\/h3>\n\n\n\n<p>Battery storage in Texas towers above every other state. OBBB keeps <a href=\"https:\/\/pv-magazine-usa.com\/2025\/07\/22\/where-storage-is-set-to-thrive-and-fade-under-the-obbb\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">standalone battery storage<\/a> eligible for tax credits, but it limits hybrid battery-solar setups. Meanwhile, Texas House Bill\u202f3809 requires battery sites to follow strict decommissioning rules starting September 2025. These changes could raise costs and slow more battery projects. And that could weaken ERCOT\u2019s ability to store energy and balance power during summer and winter peak events.\u00a0<\/p>\n\n\n\n<h3>What Homeowners Can Do<\/h3>\n\n\n\n<p>You still have time to install cooling, insulation, or windows and claim energy efficiency tax credits. For battery storage, standalone systems still qualify this year. So, if you want to upgrade your home and cut your <a href=\"https:\/\/www.texaselectricityratings.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Texas power<\/a> bills, act now!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do Energy Credits Still Matter? Texas homeowners recently lost key energy efficiency tax credits when the new One Big Beautiful Bill (OBBB) became law. This change affects the power to choose how you upgrade your home\u2019s energy efficiency. These credits helped cover costs for insulation, efficient windows, and HVAC systems. Without them, homeowners face higher <a class=\"read-more-link\" href=\"https:\/\/www.texaselectricityratings.com\/blog\/new-law-ends-energy-efficiency-tax-credits-for-texas-homeowners\/\">Read More<\/a><\/p>\n","protected":false},"author":11,"featured_media":11847,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"_mbp_gutenberg_autopost":false},"categories":[1,259],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Law Ends Energy Efficiency Tax Credits for Texas Homeowners - Blog<\/title>\n<meta name=\"description\" content=\"Learn when federal energy efficiency tax credits for Texas homes will end. Find out why you could pay more next year for energy upgrades.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.texaselectricityratings.com\/blog\/new-law-ends-energy-efficiency-tax-credits-for-texas-homeowners\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Law Ends Energy Efficiency Tax Credits for Texas Homeowners - Blog\" \/>\n<meta property=\"og:description\" content=\"Learn when federal energy efficiency tax credits for Texas homes will end. 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