The Future of Texas Energy: Decisions Based on Dollars and Sense

This policy brief by RMI examines the economic competitiveness of renewable energy versus natural gas in Texas, specifically analyzing the impact of the expired Chapter 313 tax incentive program and proposed legislation (HB 5) that would exclude renewables from its successor.

• RMI's analysis of capital expenditures (CAPEX) indicates that utility-scale solar and onshore wind are currently cheaper to construct than new natural gas plants, even without additional incentives from the Chapter 313 program.
• Proposed legislation (House Bill 5) seeks to exclude renewable energy from the next version of the Chapter 313 program while allowing dispatchable sources like natural gas plants to qualify. RMI concludes that providing these incentives only to natural gas is unlikely to make gas economically competitive with renewables, as it would require between $150 and $300 of taxpayer money per kilowatt to bridge the cost gap.
• Rapid adoption of clean technologies could result in $130 billion remaining within Texas rather than going to the federal government, primarily due to available tax credits. This represents the largest potential prize of any US state in RMI's analysis, with approximately 35 percent of that amount stimulating the electricity sector.

APA

RMI (2023). The Future of Texas Energy: Decisions Based on Dollars and Sense. https://rmi.org/resources/future-of-texas-energy-decisions-based-on-dollars-and-sense/

Chicago

RMI. The Future of Texas Energy: Decisions Based on Dollars and Sense. 2023. https://rmi.org/resources/future-of-texas-energy-decisions-based-on-dollars-and-sense/.

Wikipedia

{{cite report |author=RMI |title=The Future of Texas Energy: Decisions Based on Dollars and Sense |date=14 April 2023 |url=https://rmi.org/resources/future-of-texas-energy-decisions-based-on-dollars-and-sense/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023future, author = {{RMI}}, title = {{The Future of Texas Energy: Decisions Based on Dollars and Sense}}, institution = {RMI}, year = {2023}, month = apr, url = {https://rmi.org/resources/future-of-texas-energy-decisions-based-on-dollars-and-sense/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }