Texas Wind Facts

Quick jump: Texas Wind Stats - State Policies: Renewable Generation Requirement - Fuel Mix and Emissions Disclosure - Financial Incentives: Solar and Wind Energy Device Franchise Tax Deduction / Solar and Wind Energy Business Franchise Tax Exemption

Texas has contributed more than any other state to the growth of the U.S. wind industry in recent years. Texas is by far the leading state in the nation in terms of wind energy output with over 7,000 MW of installed capacity; wind installations in Texas account for almost a third of the nation’s total installed wind capacity – enough energy to power well over one million Texas homes. Wind resources in the Texas Panhandle provide some of the greatest energy potential in the nation and will continue to support growth in the next few years.

In addition to high wind speeds, legislation has been a boon to the growth of the wind industry in Texas. Wind power development has more than quadrupled in Texas since the state’s Renewable Portfolio Standard was first implemented in 1999. Unlike many other states, Texas’s RPS mandates set MW targets rather than tying the required renewable generation to percentages of total production.



Wind Stats

as of September 30th, 2009

  • Total installed wind energy capacity (MW): 8796.68
  • Current wind energy capacity under construction (MW): 660.05
  • Total wind energy potential (in billion kW/year): 481
  • Average potential power output (MW): 136,100
  • Ranks 2nd in US for potential wind power output
  • Ranks 1st in US for current wind power output



State Policies

Renewable Generation Requirement

Texas first passed a renewable energy mandate in 1999. Since then, targets have been updated, with the ultimate goal being 10,000 MW of renewable energy by 2025. Mandates exist in the interim:

  • 2,280 MW by 1/1/2007
  • 3,272 MW by 1/1/2009
  • 4,264 MW by 1/1/2011
  • 5,256 MW by 1/1/2013
  • 5,880 MW by 1/1/2015

The mandate applies to all investor-owned utilities and to municipal and cooperative utilities that choose to offer customer choice. Each participating utility is allocated a share of the mandate based on its percentage of statewide retail electricity sales.

Fuel Mix and Emissions Disclosure

Texas retail electric providers (REP) must disclose certain information to customers on an "Electricity Facts Label". The label must include electricity prices, contract terms, sources of generation, and emissions levels. The standardized label is designed to help customers choose their electric power provider. Energy suppliers must make information available to consumers at least once a year, or upon a request made to the Texas Public Utility Commission (PUCT). Visit www.powertochoose.org for more information on requesting the label.


Financial Incentives

Solar and Wind Energy Device Franchise Tax Deduction:

AEntities can deduct 10% of the amortized cost of a wind energy device from the franchise tax. Texas uses a franchise tax as an equivalent to a corporate tax.

Solar and Wind Energy Business Franchise Tax Exemption:

Companies in Texas that manufacture, sell or install wind energy devices can claim an exemption from the franchise tax. The exemption has no ceiling. Companies applying for the exemption may not be involved in other wind energy activities.