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

RMI analysis finds that utility-scale solar and onshore wind are already cheaper to build than new natural gas plants in Texas, even without the Chapter 313 tax incentives. The report argues that excluding renewables from the next iteration of Chapter 313 via House Bill (HB) 5 is economically inefficient, as it would require $150 to $300 in taxpayer funds per kilowatt to make natural gas competitive. Furthermore, rapid adoption of clean technologies could allow Texas to retain $130 billion in-state through federal tax credits, with approximately 35 percent of that amount stimulating the electricity sector.

• Under current economic conditions and without additional incentives from the Chapter 313 program, utility-scale solar and onshore wind are more cost-effective to construct than new natural gas facilities.
• House Bill (HB) 5 proposes a new version of the Chapter 313 program that allows natural gas plants to qualify for tax limitations while specifically excluding renewable energy.
• Providing Chapter 313 incentives exclusively to natural gas plants is unlikely to bridge the cost gap with renewables; making natural gas economically competitive would require a taxpayer subsidy of $150 to $300 per kilowatt (kW).
• Texas has the potential to keep $130 billion in-state by rapidly adopting clean technologies, primarily through new federal tax credits, with about 35 percent of this sum benefiting 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} }