AUSTIN – Legislation that would create a $100 million-a-year state program to encourage use of solar energy and require homebuilders in new subdivisions to offer solar energy to home buyers won approval from the Senate on Tuesday.

The measure, which would also set up a loan program for public schools to install solar systems, would be funded through a fee on all energy bills in the state. Homeowners would pay a fee of 20 cents a month, while large businesses would pay $20 a month.

"We take pride in the fact that Texas is recognized as the national leader in renewable energy, especially wind generation," said Sen. Troy Fraser, R-Horseshoe Bay, author of the bill.

"This legislation allows our state to become more energy dependent and meet our renewable energy goals through the installation of solar generation."

Senators voted 26-4 to approve the measure, which now goes to the House.

Fraser said the incentive program, which would operate for at least five years, would provide a "jump start" for the use of solar energy in homes and businesses.

The Public Utility Commission will decide how to distribute the incentive money, which will be used to pay for up to one-third the cost of installation of solar panels and related technologies.

When combined with existing federal tax credits of up to 30 percent, the legislation would make solar energy more feasible for thousands of Texas families, according to experts.

"This bill would put Texas on the map when it comes to solar power," said Luke Metzger, director of Environment Texas, an advocacy group. "We have the sun, we have the technological know-how. Now we'll have a market that can make Texas a world leader in solar power."

Besides requiring that home buyers in new subdivisions be offered the option of solar energy, the bill also would prohibit homeowners associations from having policies that ban the installation of solar panels on residences.