by the numbers

Report: Texas scores significant chunk of federal clean energy investment

For the 2023 budget year, Texas’ total pot of federal money ranked second behind California’s. Photo via Getty Images

On a per-person basis, Texas grabbed the third-highest share of federal investment in clean energy and transportation during the government’s 2023 budget year, according to a new report.

Texas’ haul — $6.2 billion in federal investments, such as tax credits and grants — from October 1, 2022, to September 30, 2023, worked out to $204 per person, bested only by Wyoming ($369) and New Mexico ($259). That’s according to the latest Clean Investment Monitor report shows. Rhodium Group and MIT’s Center for Energy and Environmental Policy Research produced the report.

For the 2023 budget year, Texas’ total pot of federal money ranked second behind California’s ($7.5 billion), says the report. Nationwide, the federal government’s overall investment in clean energy and transportation reached $34 billion.

Other highlights of the report include:

  • Public and private investment in clean energy and transportation soared to $239 billion in 2023, up 37 percent from the previous year.
  • Overall investment in utility-scale solar power and storage systems climbed to $53 billion in 2023, up more than 50 percent from the previous year.
  • Overall investment in emerging climate technologies (clean energy, sustainable aviation fuel, and carbon capture) during 2023 surpassed investment in wind energy for the first time. This pool of money expanded from $900 million in 2022 to $9.1 billion in 2023.

The Lone Star arm of the pro-environment Sierra Club says the federal Inflation Reduction Act, which took effect in 2022, “includes a dizzying number of programs and tax incentives” for renewable energy.

“While it will take several years for all the programs to be implemented, billions in tax incentives and tax breaks, along with specific programs focused on clean energy development, energy efficiency, onsite solar, and transmission upgrades, means that Texas could help lower costs and transform our electric grid,” says the Sierra Club.

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A View From HETI

CenterPoint customers in the Houston area will pay an extra $1 a month to cover costs of the recently approved $2.9 billion resiliency plan starting next year. Photo via centerpointenergy.com

Texas utility regulators have given the green light for Houston-based CenterPoint Energy to spend $2.9 billion on strengthening its Houston-area electric grid to better withstand extreme weather.

The cost of the plan is nearly $3 billion below what CenterPoint initially proposed to the Public Utility Commission of Texas.

In early 2025, CenterPoint unveiled a $5.75 billion plan to upgrade its Houston-area power system from 2026 through 2028. But the price tag dropped to $2.9 billion as part of a legal settlement between CenterPoint and cities in the utility’s service area.

Sometime after the first quarter of next year, CenterPoint customers in the Houston area will pay an extra $1 a month for the next three years to cover costs of the resiliency plan. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

CenterPoint says the plan is part of its “commitment to building the most resilient coastal grid in the country.”

A key to improving CenterPoint’s local grid will be stepping up management of high-risk vegetation (namely trees), which ranks as the leading cause of power outages in the Houston area. CenterPoint says it will “go above and beyond standard vegetation management by implementing an industry-leading three-year trim cycle,” clearing vegetation from thousands of miles of power lines.

The utility company says its plan aims to prevent Houston-area power outages in case of hurricanes, floods, extreme temperatures, tornadoes, wildfires, winter storms, and other extreme weather events.

CenterPoint says the plan will:

  • Improve systemwide resilience by 30 percent
  • Expand the grid’s power-generating capacity. The company expects power demand in the Houston area to grow 2 percent per year for the foreseeable future.
  • Save about $50 million per year on storm cleanup costs
  • Avoid outages for more than 500,000 customers in the event of a disaster like last year’s Hurricane Beryl
  • Provide 130,000 stronger, more storm-resilient utility poles
  • Put more than 50 percent of the power system underground
  • Rebuild or upgrade more than 2,200 transmission towers
  • Modernize 34,500 spans of underground cables

In the Energy Capital of the World, residents “expect and deserve an electric system that is safe, reliable, cost-effective, and resilient when they need it most. We’re determined to deliver just that,” Jason Wells, president and CEO of CenterPoint, said in January.

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