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Austin Energy increases solar incentives for residential and commercial customers

June 30, 2026

solar panelsBeginning July 1, Austin Energy is increasing financial solar incentives to make clean, renewable energy even more affordable for homeowners, businesses and nonprofits. Austin Energy’s solar programs apply additional incentives on top of the utility’s Value of Solar bill credit for solar generation.

With higher residential rebates and boosted incentives for commercial solar projects, going solar will pay off faster — helping customers save money while advancing Austin’s ambitious clean energy goals.

“These incentive updates are designed to accelerate local solar adoption, support the local solar industry and support Austin's climate goals,” said Stuart Reilly, Austin Energy General Manager. “It’s the definition of a win-win when you can also help customers offset energy costs by generating clean electricity on-site.”

Residential Solar Incentive Increase

Homeowners who install a solar photovoltaic system larger than 3 kilowatts will now see the rebate increase from $2,500 to $4,000 per project — a 60% increase.

Commercial Solar Incentives Increase

Commercial and nonprofit customer incentives are also increasing through both capacity-based and performance-based rebate programs. Nonprofit customers will see incentives increase by 66%, and commercial customers will see anywhere from a 25% to a 50% increase, depending on the size of their projects.

  • Capacity-Based Incentives
    • Nonprofit projects under 200 kW: Increase from $0.60 to $1.00 per watt
    • For-profit projects under 100 kW: Increase from $0.50 to $0.70 per watt
  • Performance-Based Incentives (Paid per KwH of energy produced over five years)
    • Projects under 400 kW: Increase from $0.08 to $0.10 per kWh
    • Projects between 400 and 999 kW: Increase from $0.06 to $0.08 per kWh
    • Projects 1,000 kW and larger: Increase from $0.04 to $0.06 per kWh

Austin Energy's solar programs have helped thousands of residential and commercial customers install solar systems that reduce electric bills, improve energy resilience and contribute to a cleaner energy future.

For more information go to austinenergy.com/solar.