Haotian Wang, co-founder of Solidec, a 2025 Houston Startup of the Year finalist. Photo courtesy Welch Foundation.

We're just two weeks away from the 2025 Houston Innovation Awards, presented by InnovationMap.com, and while an expert panel of judges will determine the winners in most categories, one award is up to the public.

Voting is now open for 2025 Houston Startup of the Year, the people's choice award. Six exceptional finalists are in the running for the title, including three from the energy transition sector.

From next-gen biobased materials to technology that creates chemicals without carbon emissions, these companies are shaping the future.

Read about all of the Startup of the Year finalists and their missions below, then cast your vote. You can vote once per day through November 12.

The winner, along with winners in all other categories, will be revealed live on November 13 at Greentown Labs. Tickets to the 2025 Houston Innovation Awards are available now — get yours today.

2025 Houston Startup of the Year finalists:

Eclipse Energy

Eclipse Energy, previously known as Gold H2, is a climatetech startup converting end-of-life oil fields into low-cost, sustainable hydrogen sources. The company completed its first field trial this summer, which demonstrated subsurface bio-stimulated hydrogen production. Eclipse Energy says Its technology could yield up to 250 billion kilograms of low-carbon hydrogen.

Rheom Materials

Rheom Materials is a next-generation startup developing biobased materials for a more sustainable future. Its two flagship offerings are Shorai, a sustainable leather alternative that is usable for apparel, accessories, car interiors, and more, and Benree, an alternative to plastic without the carbon footprint.

Solidec

Solidec is a chemical manufacturing company developing autonomous generators that extract molecules from water and air and convert them into pure chemicals and fuels that are free of carbon emissions. The technology eliminates the need for transport, storage, and permitting.

FlowCare

FlowCare is developing a period health platform that integrates smart dispensers, education, and healthcare into one system to make free, high-quality, organic period products more accessible. FlowCare is live at prominent Houston venues, including Discovery Green, Texas Medical Center, The Ion, and, most recently, Space Center Houston, helping make Houston a “period positivity” city.

MyoStep

MyoStep is a next-generation, lightweight, soft exoskeleton developed at University of Houston for children with cerebral palsy. The soft skeleton aims to address motor impairments that impact their ability to participate in physical activities, self-care, and academics, via an affordable, child-friendly solution that empowers mobility and independence.

Persona AI

Persona AI is a humanoid robotics startup that is creating rugged, autonomous robots for skilled, heavy industry work for various "4D" (dull, dirty, dangerous, and declining) jobs. In May, the company announced a memorandum of understanding with HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Robotic, and Vazil Company to create and deploy humanoid robots for complex welding tasks in shipyards. The project will deliver prototype humanoids by the end of 2026.

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The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

Houston-based Solidec was founded around innovations developed by Rice University associate professor Haotian Wang (far left). Photo courtesy Greentown Labs.

7 innovative startups fueling the energy transition in Houston

Meet the Innovators

Houston has long been touted as the energy capital of the world, and it's now it's also a leading player in the energy transition — home to numerous startups and innovators working toward a cleaner future.

As part of the 2025 Houston Innovation Awards, presented by InnovationMap, the Energy Transition Business category honors innovative startups that are providing solution within renewables, climatetech, clean energy, alternative materials, circular economy, and more.

Seven energy transition companies have been named finalists for the 2025 award. They range from a spinoff stimulating subsurface hydrogen from end-of-life oil fields to a company converting prickly pear cactus biogas into energy.

Read more about these climatetech businesses, their founders, and their green initiatives below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are now on sale.

Anning Corporation

Clean energy company Anning Corporation is working to develop geologic hydrogen, a natural carbon-free fuel, using its proprietary stimulation approaches and advanced exploration modeling. The company said that geologic hydrogen has the potential to be the lowest-cost source of reliable baseload electricity in the U.S.

The company was founded by CEO Sophie Broun in 2024 and is a member of Greentown Labs. Last month, it also announced that it was chosen to participate in Breakthrough Energy’s prestigious Fellows Program. Anning raised a pre-seed round this year and is currently raising a $6 million seed round.

Capwell Services

Houston-based methane capture company Capwell Services works to eliminate vented oil and gas emissions economically for operators. According to the company, methane emissions are vented from most oil and gas facilities due to safety protocols, and operators are not able to capture the gas cost-effectively, leading operators to emit more than 14 million metric tons of methane per year in the U.S. and Canada. Founded in 2022, Capwell specializes in low and intermittent flow vents for methane capture.

The company began as a University of Pennsylvania senior design project led by current CEO Andrew Lane. It has since participated in programs with Greentown Labs and Rice Clean Energy Accelerator. The company moved to Houston in 2023 and raised a pre-seed round. It has also received federal funding from the DOE. Capwell is currently piloting its commercial unit with oil and gas operators.

Deep Anchor Solutions

Offshore energy consulting and design company Deep Anchor Solutions aims to help expedite the adoption of floating offshore energy infrastructure with its deeply embedded ring anchor (DERA) technology. According to the company, its patented DERA system can be installed quietly without heavy-lift vessels, reducing anchor-related costs by up to 75 percent and lifecycle CO2 emissions by up to 80 percent.

The company was founded in 2023 by current CEO Junho Lee and CTO Charles Aubeny. Lee earned his Ph.D. in geotechnical engineering from Texas A&M University, where Aubeny is a professor of civil and environmental engineering. The company has participated in numerous accelerators and incubators, including Greentown Labs, MassChallenge, EnergyTech Nexus LiftOff, and others. Lee is an Activate 2025 fellow.

Eclipse Energy

Previously known as Gold H2, Eclipse Energy converts end-of-life oil fields into low-cost, sustainable hydrogen sources. It completed its first field trial this summer, which demonstrated subsurface bio-stimulated hydrogen production. According to the company, its technology could yield up to 250 billion kilograms of low-carbon hydrogen, which is estimated to provide enough clean power to Los Angeles for over 50 years and avoid roughly 1 billion metric tons of CO2 equivalent.

Eclipse was founded in 2022 by Moji Karimi (CEO and chairman of Cemvita), Prabhdeep Sekhon (CEO of Eclipse), Tara Karimi and Rayyan Islam. The company closed an $8 million series A this year and has plans to raise another round in 2026.

Loop Bioproducts

Agricultural chemical manufacturing company Loop Bioproducts leverages the physiology of prickly pear cactus grown in Texas to produce bioenergy, food, and remediate industrial wastewater streams. The company uses its remote sensing technology, proprietary image-based machine learning model, and R&D innovation to capture raw biogas from the cactuses and is focused on scaling cactuses as an industrial crop on land.

Rhiannon Parker founded Loop Bioproducts in 2023.

Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers, and rubbers. The company reports that it plans to open its first commercial plant in the next 18 months.

Founded in 2019 by CEO Aaron Fitzgerald, CTO Kristian Gubsch, and lead engineer Trey Sheridan, the company has raised just under $1 million in capital and is backed by Bill Gates’ Breakthrough Energy, Shell, Black & Veatch, and other organizations.

Solidec

Chemical manufacturing company Solidec has developed autonomous generators that extract molecules from water and air and converts them into pure chemicals and fuels that are free of carbon emissions onsite, eliminating the need for transport, storage, and permitting. The company was founded around innovations developed by Rice University associate professor Haotian Wang.

The company was selected for the Chevron Technology Ventures’ catalyst program, Greentown Labs, NSF I-Corps and was part of the first cohort of the Activate Houston program. It won first place at the 2024 startup pitch competition at CERAWeek. Solidec was founded in 2023 by Wang, who serves as chief scientist, CEO Ryan DuChanois, and CTO Yang Xia. It closed a $2.5 million seed round earlier this year.

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The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

Houston-based Solidec has closed an oversubscribed pre-seed round led by New Climate Ventures. Photo courtesy Greentown Labs.

Houston clean-chemicals startup Solidec raises $2M to scale tech

fresh funding

Solidec, a Houston startup that specializes in manufacturing “clean” chemicals, has raised more than $2 million in pre-seed funding.

Houston-based New Climate Ventures led the oversubscribed pre-seed round, with participation from Plug and Play Ventures, Ecosphere Ventures, the Collaborative Fund, Safar Partners, Echo River Capital and Semilla Climate Capital, among other investors.

Solidec’s approach to chemical manufacturing replaces centralized infrastructure with modular on-site production using only air, water and electricity. Solidec’s platform is powered by modular reactors capable of producing widely used chemicals such as hydrogen peroxide, formic acid, acetic acid and ethylene.

“We’ve known the Solidec team for almost two years and have developed a high degree of conviction in the team, their technology, and their go-to-market strategy,” Eric Rubenstein, managing partner at New Climate Ventures, said in a news release. “We’re particularly excited about Solidec’s ability to produce many different widely used chemicals. It gives them critical flexibility to expand and serve a broad customer base.”

Solidec is initially focusing on hydrogen peroxide.

“Traditionally, hydrogen peroxide is produced in centralized, energy-intensive facilities using carbon-intensive inputs, then transported long distances, resulting in a significant carbon footprint,” Ryan DuChanois, co-founder and CEO of Solidec, said in the release. “Solidec’s modular reactor produces clean chemicals like hydrogen peroxide on-site, in fewer steps, and with less energy, slashing emissions, supply-chain risk, and cost.”

Solidec said its technology “is poised to disrupt the multibillion-dollar commodity and chemical industries.” The company has already signed up several customers.

The startup, a Rice University spinout, is a graduate of the Chevron Catalyst Program and a member of Greentown Labs Houston. It was cofounded by DuChanois, Haotian Wang and Yang Xia.

Here are all the events on CERAWeek's Agora track you can't miss if learning more about Houston energy innovation is your goal. Staff photo

Here are 20+ CERAWeek 2025 events featuring Houston energy leaders

where to be

CERAWeek 2025 will host more than 1,400 speakers at its annual energy-focused conference taking place March 10-14, with many hailing from Houston.

Under this year's theme, "Moving Ahead: Energy strategies for a complex world,” panels will tackle topics ranging from policy and regulation, geopolitics, power, grid, and electrification, AI and digital, managing emissions, and more.

Most of the innovation-themed events are organized under the Agora track and will feature many Houston-area startups, universities, companies, and scientists. Here are all the events on the Agora track you can't miss if you want to learn more about Houston energy innovation.

Transition in Action: Energy giants shaping a sustainable future

ExxonMobil's Senior Director, Climate Strategy & Technology Vijay Swarup will examine how major energy companies are driving energy transition goals along with panelists from S&P Global, Aramco Ventures and Gentari Sdn Bhd.

This panel is from 12:30-1 p.m. on Monday, March 10. More info here.

Syzygy Plasmonics | Deploying the World’s Most Economic Biogas to SAF Technology

Hear from Syzygy Plasmonics CEO Trevor Best about how the cleantech company's catalyst and reactor work and how the tools can dramatically reduce the cost of producing SAF from biogas from landfills, wastewater, and dairy farms.

This panel is from 2-2:30 p.m. on Monday, March 10. More info here.

Cemvita | The Future of Bioengineered Feedstocks: A Foresight Perspective

Cemvita CEO Moji Karimi will lead this panel.

This panel is from 4:30-5:15 p.m. on Monday, March 10. More info here.

Innovating with Purpose: Strengthening industrial-academic partnerships

David Dankworth, ExxonMobil's Hydrogen Technology Portfolio Manager, and Brian Korgel, the University of Texas Energy Institute Director, will be joined by leaders from MIT and S&P Global to discuss the crucial relationship between universities and industry in fostering purpose-driven innovation.

This panel is from 8:30–9 a.m. on Tuesday, March 11. More info here.

Solidec | Low-cost, Low-carbon Chemicals from Air

Solidec co-founder and CEO Ryan DuChanois will discuss how the company's approach to producing hydrogen peroxide and other key chemicals can be low-cost and low-carbon, creating a scalable path for a more sustainable chemical industry.

This panel is from 9-9:30 a.m. on Tuesday, March 11. More information here.

Collaboration Spotlight: The Carbon Hub: A public-private partnership leading the way to a sustainable carbon economy

Panelists from Rice University, Huntsman Advanced Materials, CERAWeek, The Kavli Foundation, and SABIC will discuss Rice's Carbon Hub's transformative power and what the future looks like for those creating this new carbon economy. Matteo Pasquali, the founding Director of the Carbon Hub, will be featured on the panel.

This panel is from 9:30-10 a.m. on Tuesday, March 11. More information here.

Rice University | Next-generation Electrolyzers and Electrolysis

Haotian Wang, Associate Professor in the Department of Chemical and Biomolecular Engineering at Rice University and co-founder of Solidec, will discuss the development of next-generation electrolyzers that enable lower-cost and more energy-efficient carbon capture, chemical manufacturing and critical metal recovery.

This panel is from 9:30–10:15 a.m. on Tuesday, March 11. More information here.

ExxonMobil | Real-world Progress on Building a Low-carbon Business

Schuyler Evans, ExxonMobil's CCS commerical and business development manager low carbon solutions, will speak on how the energy giant is navigating a complex energy transition and share insights into the strategic thinking behind building a new business that helps reduce emissions.

This panel is from 10-10:30 a.m. on Tuesday, March 11. More information here.

Enovate.AI | AI-driven Advantage: Automate. Optimize. Decarbonize.

Enovate.AI Chief Experience Officer Rebecca Nye, joined by Last Mile Production, will show how its 3-clicks digital strategy empowers operators to make faster, smarter decisions—reducing emissions, enhancing productivity and unlocking new levels of profitability.

This panel is from 10:30–11 a.m. on Tuesday, March 11. More information here.

Financing the Future: Scaling clean energy through innovative investment strategies

Jim Gable, president of Chevron Technology Ventures and vice president of innovation, along with Greentown Lab's new CEO Georgina Campbell Flatter, will discuss the bankability of technologies in different geographies, investment opportunities in emerging markets, sources of funding and risk management strategies investors are using. Panelists also include leaders from Siemens Energy, Energy Impact Partners, and S&P Global Commodity Insights.

This panel is from 12:30–1:10 p.m. on Tuesday, March 11. More information here.

Sage Geosystems | Geothermal at the Speed of Need: How Sage Geosystems is meeting growing energy demand

Learn from Jason Peart, general manager of strategy and development, how Sage's approach to geothermal technology is tackling the fast-growing energy demands of critical sectors, including data centers, utilities, energy storage, and US Department of Defense projects.

This panel is from 1:30–2 p.m. on Tuesday, March 11. More information here.

Rice University | Valuing Nature-based Solutions for CO2 Removal

Carrie Masiello, director of the Rice Sustainability Institute, will introduce to the breadth of nature-based solutions possible, explore some of the most exciting opportunities and give guidance on how to think rigorously about matching individual NBS opportunities to specific portfolio needs.

This panel is from 1:30–2:15 p.m. on Tuesday, March 11. More information here.

Square Robot | Bridging the Divide: How Square Robot's tank inspections align corporate strategy with on-the-ground reality

Square Robot CEO David Lamont will discuss how companies can keep their tank assets online by adopting new technology and navigating the challenges of aligning corporate objectives with site-level realities.

This panel is from 3–3:30 p.m. on Tuesday, March 11. More information here.

The Green Gold Rush: A multi-trillion dollar opportunity?

Bobby Tutor, chairman of Houston Energy Transition Initiative and CEO of Artemis Energy Partners, will be joined by leaders from Accenture, S&P Global, and BeyondNetZero to discuss the immense economic potential of climate solutions and highlight the business opportunities created by the transition to a low-carbon economy.

This panel is from 4–4:30 p.m. on Tuesday, March 11. More information here.

ExxonMobil | Applying Technology to Maximize Value in the Permian Basin

James Ritchie, Exxon's vice president upstream technology portfolio, will share the latest technologies being developed and deployed to improve recovery and capital efficiency in the Permian Basin and demonstrate how these technologies and innovations maximize overall value while reducing greenhouse gas emissions and water usage.

This panel is from 2:30–3 p.m. on Wednesday, March 12. More information here.

Rice University | Plasma Foundry for Scalable Industrial Decarbonization

Aditya Mohite, a Rice professor and the faculty director of the Rice Engineering Initiative for Energy Transition and Sustainability (REINVENTS), will share how The Plasma Foundry, a 1:1 customized accelerator at Rice, is using cold plasma technology and its accelerator model to provide disruptive solutions at scale.

This panel is from 9:30–10:15 a.m. on Thursday, March 13. More information here.

Fervo Energy | Speed and Scale: The Geothermal Decade Is Now

Quinn Woodard Jr., Fervo Energy's senior director, power generation and surface facilities, will discuss how the company is pioneering transformative EGS technology to power data centers, homes and beyond.

This panel is from 10:30–11 a.m. on Thursday, March 13. More information here.

Corrolytics | Digitizing and Revolutionizing Corrosion Detection and Monitoring for Industrial Assets

Anwar Sadek, Corrolytics co-founder and CEO, will share how the company is revolutionizing corrosion detection and monitoring with patented technology to proactively enhance safety, reduce costs and extend asset lifespan.

This panel is from 10:30–11 a.m. on Thursday, March 13. More information here.

Zeta Energy | The Rise of Lithium-Sulfur Batteries: A solution to critical metal constraints

Rodrigo Salvatierra, Zeta's chief science officer, will introduce Zeta Energy’s lithium-sulfurized carbon technology, which effectively addresses the key limitations of lithium-sulfur batteries.

This panel is from 3–3:30 p.m. on Thursday, March 13. More information here.

Future Cities on the Move: Innovative pathways for sustainable urban mobility

Lisa Lin, Harris County's director of sustainability, will speak on this panel on successful public-private partnerships driving innovation in sustainable transport by leveraging technology and data analytics. She'll be joined by Aberdeen's council co-lead and leaders from S&P Global and GreenCap, based in Cape Town, South Africa.

This panel is from 3:30–4 p.m. on Thursday, March 13. More information here.

Collaboration Spotlight: Building a resilient Gulf Coast energy and chemical sector

Greater Houston Partnership and HETI's Jane Stricker will join Ramanan Krishnamoorti from the University of Houston and leaders from Argonne National Laboratory and SABIC to explore opportunities and pathways to strengthen the US Gulf Coast’s global leadership position in base chemical manufacturing and the national security and economic opportunities that innovation and process integration create.

This panel is from 4:30–5 p.m. on Thursday, March 13. More information here.

Houston-based Solidec took home the top TEX-E price and $25,000 at last year's Energy Venture Day and Pitch Competition. Photo courtesy of HETI

50+ teams announced for CERAWeek's annual clean tech pitch competition

CERA pitches

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative and the Texas Entrepreneurship Exchange for Energy announced the 30-plus energy ventures and five student teams that will pitch at the 2025 Energy Venture Day and Pitch Competition during CERAWeek next month.

The ventures are focused on driving efficiency and advancements toward the energy transition and will each present a 3.5-minute pitch before a network of investors and industry partners during CERAWeek's Agora program.

The pitch competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track.

Teams competing in the TEX-E Prize track include:

  • ECHO
  • HEXAspec
  • HydroStor Analytics
  • Nanoborne
  • Pattern Materials

The industry track is subdivided into three additional tracks, spanning materials to clean energy and will feature 36 companies. The top three companies from each industry track will be named. The winner of the CERAWeek competition will also have the chance to advance and compete for the $1 million investment prize at the Startup World Cup in October 2025.

Teams come from around the world, including several notable Houston-based ventures, such as Corrolytics, Rheom Materials, AtmoSpark Technologies, and others. Click here to see the full list of companies and investor groups that will participate.

The pitch competition will be held Wednesday, March 12, at CERAWeek from 1-4:30 pm. An Agora pass is required to attend.

Those without passes can catch more than 50 companies at a free pitch preview at the Ion. Pitches will be followed by private meetings with venture capitalists, corporate innovation groups, industry leaders, and tech scouts. The preview will be held Tuesday, March 11, from 9:30 am to 2:30 pm at the Ion. It's free to attend, but registration is required. Click here to register.

Last year, Houston-based Solidec took home the top TEX-E price and $25,000 cash awards. The startup extracts molecules from water and air, then transforms them into pure chemicals and fuels that are free of carbon emissions. Its co-founder and Rice University professor Haotian Wang was recently awarded the 2025 Norman Hackerman Award in Chemical Research.

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Micro-nuclear reactor to launch next year at Texas A&M innovation campus

nuclear pilot

The Texas A&M University System and Last Energy plan to launch a micro-nuclear reactor pilot project next summer at the Texas A&M-RELLIS technology and innovation campus in Bryan.

Washington, D.C.-based Last Energy will build a 5-megawatt reactor that’s a scaled-down version of its 20-megawatt reactor. The micro-reactor initially will aim to demonstrate safety and stability, and test the ability to generate electricity for the grid.

The U.S. Department of Energy (DOE) fast-tracked the project under its New Reactor Pilot Program. The project will mark Last Energy’s first installation of a nuclear reactor in the U.S.

Private funds are paying for the project, which Robert Albritton, chairman of the Texas A&M system’s board of regents, said is “an example of what’s possible when we try to meet the needs of the state and tap into the latest technologies.”

Glenn Hegar, chancellor of the Texas A&M system, said the 5-megawatt reactor is the kind of project the system had in mind when it built the 2,400-acre Texas A&M-RELLIS campus.

The project is “bold, it’s forward-looking, and it brings together private innovation and public research to solve today’s energy challenges,” Hegar said.

As it gears up to build the reactor, Last Energy has secured a land lease at Texas A&M-RELLIS, obtained uranium fuel, and signed an agreement with DOE. Founder and CEO Bret Kugelmass said the project will usher in “the next atomic era.”

In February, John Sharp, chancellor of Texas A&M’s flagship campus, said the university had offered land at Texas A&M-RELLIS to four companies to build small modular nuclear reactors. Power generated by reactors at Texas A&M-RELLIS may someday be supplied to the Electric Reliability Council of Texas (ERCOT) grid.

Also in February, Last Energy announced plans to develop 30 micro-nuclear reactors at a 200-acre site about halfway between Lubbock and Fort Worth.

Rice University partners with Australian co. to boost mineral processing, battery innovation

critical mineral partnership

Rice University and Australian mineral exploration company Locksley Resources have joined together in a research partnership to accelerate the development of antimony processing in the U.S. Antimony is a critical mineral used for defense systems, electronics and battery storage.

Rice and Locksley will work together to develop scalable methods for extracting and utilizing antimony. Currently, the U.S. relies on imports for nearly all refined antimony, according to Rice.

Locksley will fund the research and provide antimony-rich feedstocks and rare earth elements from a project in the Mojave Desert. The research will explore less invasive hydrometallurgical techniques for antimony extraction and explore antimony-based materials for use in batteries and other energy storage applications.

“This strategic collaboration with Rice marks a pivotal step in executing Locksley’s U.S. strategy,” Nathan Lude, chairman of Locksley Resources, said in a news release. “By fast-tracking our research program, we are helping rebuild downstream capacity through materials innovation that the country urgently requires.”

Pulickel Ajayan, the Benjamin M. and Mary Greenwood Anderson Professor of Materials Science and Nanoengineering at Rice, is the principal investigator of the project.

“Developing scalable, domestic pathways for antimony processing is not only a scientific and engineering challenge but also a national strategic priority,” Ajayan said in the news release. “By combining Rice’s expertise in advanced materials with Locksley’s resources, we can address a critical supply chain gap and build collaborations that strengthen U.S. energy resilience.”

The Rice Advanced Materials Institute (RAMI) will play a major role in supporting the advancement of technology and energy-storage applications.

“This partnership aligns with our mission to lead in materials innovations that address national priorities,” Lane Martin, director of RAMI, said in a news release. “By working with Locksley, we are helping to build a robust domestic supply chain for critical materials and support the advancement of next-generation energy technologies.”

Expert examines how far Texas has come in energy efficiency

Guest Column

Texas leads the nation in energy production, providing about one-fourth of the country’s domestically produced primary energy. It is also the largest energy-consuming state, accounting for about one-seventh of the nation’s total energy use, and ranks sixth among the states in per capita energy consumption.

However, because Texas produces significantly more energy than it consumes, it stands as the nation’s largest net energy supplier. October marked National Energy Awareness Month, so this is an ideal time to reflect on how far Texas has come in improving energy efficiency.

Progress in Clean Energy and Grid Resilience

Texas continues to lead the nation in clean energy adoption and grid modernization, particularly in wind and solar power. With over 39,000 MW of wind capacity, Texas ranks first in the country in wind-powered electricity generation, now supplying more than 10% of the state’s total electricity.

This growth was significantly driven by the Renewable Portfolio Standard (RPS), which requires utility companies to produce new renewable energy in proportion to their market share. Initially, the RPS aimed to generate 10,000 MW of renewable energy capacity by 2025. Thanks to aggressive capacity building, this ambitious target was reached much earlier than anticipated.

Solar energy is also expanding rapidly, with Texas reaching 16 GW of solar capacity as of April 2024. The state has invested heavily in large-scale solar farms and supportive policies, contributing to a cleaner energy mix.

Texas is working to integrate both wind and solar to create a more resilient and cost-effective grid. Efforts to strengthen the grid also include regulatory changes, winterization mandates, and the deployment of renewable storage solutions.

While progress is evident, experts stress the need for continued improvements to ensure grid reliability during extreme weather events, when we can’t rely on the necessities for these types of energy sources to thrive. To put it simply, the sun doesn’t always shine, and the wind doesn’t always blow.

Federal Funding Boosts Energy Efficiency

In 2024, Texas received $22.4 million, the largest share of a $66 million federal award, from the U.S. Department of Energy’s Energy Efficiency Revolving Loan Fund Capitalization Grant Program.

The goal of this funding is to channel federal dollars into local communities to support energy-efficiency projects through state-based loans and grants. According to the DOE, these funds can be used by local businesses, homeowners, and public institutions for energy audits, upgrades, and retrofits that reduce energy consumption.

The award will help establish a new Texas-based revolving loan fund modeled after the state’s existing LoanSTAR program, which already supports cost-effective energy retrofits for public facilities and municipalities. According to the Texas Comptroller, as of 2023, the LoanSTAR program had awarded more than 337 loans totaling over $600 million.

In addition to expanding the revolving loan model, the state plans to use a portion of the DOE funds to offer free energy audit services to the public. The grant program is currently under development.

Building on this momentum, in early 2025, Texas secured an additional $689 million in federal funding to implement the Home Energy Performance-Based, Whole House (HOMES) rebate program and the Home Electrification and Application Rebate (HEAR) program.

This investment is more than five times the state’s usual energy efficiency spending. Texas’s eight private Transmission and Distribution Utilities typically spend about $110 million annually on such measures. The state will have multiple years to roll out both the revolving loan and rebate programs.

However, valuable federal tax incentives for energy-efficient home improvements are set to expire on December 31, 2025, including:

  • The Energy Efficiency Home Improvement Credit allows homeowners to claim up to $3,200 per year in federal income tax credits, covering 30% of the cost of eligible upgrades, such as insulation, windows, doors, and high-efficiency heating and cooling systems.
  • The Residential Clean Energy Credit provides a 30% income tax credit for the installation of qualifying clean energy systems, including rooftop solar panels, wind turbines, geothermal heat pumps, and battery storage systems.

As these incentives wind down, the urgency grows for Texas to build on the positive gains from the past several years despite reduced federal funding. The state has already made remarkable strides in clean energy production, grid modernization, and energy-efficiency investments, but the path forward requires a strategic and inclusive approach to energy planning. Through ongoing state-federal collaboration, community-driven initiatives, and forward-looking policy reforms, Texas can continue its progress, ensuring that future energy challenges are met with sustainable and resilient solutions.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.