Austin Energy increases Value of Solar rate for customer-owned solar, upping bill credits for participating customers

October 22, 2026

Effective October 1, Austin Energy increased the Value of Solar rate by 27%, adding hundreds of dollars in potential annual solar bill credits to participating customers.

The Value of Solar rate is the bill credit customers receive for energy generated by their on-site solar systems and supplied to the electric grid. Austin Energy recalculates the rate every three years to ensure customers are compensated fairly for the full value their solar production provides to the local electric grid.

“The Value of Solar rate is a great example of how Austin Energy passes savings back to the solar customer,” said Tim Harvey, Austin Energy director of Customer Energy Solutions. “We hope increases in what solar customers get compensated will encourage higher solar adoption.”

The new Value of Solar rate will be:

• 12.89 cents per kilowatt-hour for systems under 1 megawatt (MW).
• 10.22 cents per kilowatt-hour for systems 1 MW and larger.

An average residential solar system of 6 kilowatts could see a $300 increase in annual solar bill credits under the new rate, from $1,000 a year to $1,300. An average commercial system of 200 kilowatts could expect to see an increase in solar bill credits totaling $11,000 per year, from $36,000 to $47,000. The updated rates apply to existing and future eligible Value of Solar customers. A history of past rate changes is available on Austin Energy’s Value of Solar FAQ webpage.

How does Value of Solar work?

• Production: Austin Energy meters solar production and credits 100% of that production at the Value of Solar rate.
• Consumption: Austin Energy charges solar customers for all their energy consumption. Whether energy comes from on-site solar or the grid, customers will see it on their utility bill.
• Credit: Austin Energy applies the solar bill credit to electric bill charges. Excess solar bill credit carries over month-to-month and is non-transferable. Austin Energy recommends sizing a solar system to meet annual energy consumption needs. Your Solar Bill Credit only applies to your electric charges. It does not apply to any other utility services, such as water, solid waste, street services, etc.   

 For more information visit AustinEnergy.com/Solar.