On Monday, a unanimous Democratic Senate Caucus joined most State Senate Republicans in passing a landmark program to establish Texas as a world leader in solar energy production.

The $500 million incentive program, funded by a monthly utilities surcharge of $0.20 for residential customers, would provide tax rebates to homeowners and businesses -– as well as commercial energy producers -– who install solar cells on their property. Over five years, analysts expect the program could nearly double the entire solar energy production capacity of the United States.

"These new bills would bring [Texas] into the forefront of states that have solar incentives and possibly help make them a leading producer of solar electricity," said Glen Andersen, who tracks renewable energy for the National Conference of State Legislatures.

The bill now moves to the State House for consideration.

Despite its history as a major oil producer, Texas has long been a leader in energy conservation and alternative energy development. Existing laws to incentivize wind energy have already made Texas the nation’s preeminent wind energy production state, generating 2.5 times more than the #2 state (Iowa) and making Texas the 6th biggest wind energy producer in the world. Earlier this decade, Texas also led the way in mandating tough energy-efficiency standards in new home construction.

The State Senate’s solar energy plan also uses state building codes to make solar power more accessible, requiring developers of large-scale subdivisions to offer solar-cell installation for home buyers.

Around the world, other countries have already demonstrated the effectiveness of using building codes to support alternative energies. In Spain, which in 2006 went even further than the Texas plan by requiring installation of solar cells on all new and renovated buildings, solar power production nearly tripled in 2008, firmly establishing Spain as the second-largest solar power producer in the world.

Texas legislators are hoping for similar success. If all goes well, their program will prove yet again that states like Texas can also lead the way on progressive priorities like clean energy.