Austin Energy's Small Business Bundle boosts efficiency and lowers costs for local businesses

August 3, 2026

Austin Energy is offering a Small Business Bundle designed to help qualifying small businesses and nonprofits reduce energy use, lower operating costs and upgrade aging equipment. By bundling three or more energy-saving improvements — including HVAC tune-ups, LED lighting and smart thermostats — participants can access significantly increased incentives, often covering most or all project costs.

The increased incentives include the Small Business Bundle’s 30% bonus applied on top of Austin Energy’s recent 30% increase to standard commercial rebates, helping businesses of all sizes replace aging equipment, improve efficiency and performance and reduce their peak demand.

“Austin’s small businesses are the backbone of our community, and we want to make it easier and more affordable for them to invest in energy efficiency,” said Austin Energy General Manager Stuart Reilly. “These enhanced rebates reduce operating costs today while supporting a more resilient electric grid for the future.”

Bundle participants receive a free energy assessment, can customize their upgrades and benefit from vetted contractors who manage the rebate process on their behalf. Through a partnership with Velocity Credit Union, qualifying participants can access low- to no-interest loans to cover any remaining project costs.

LED lighting upgrades offer businesses improved light quality, lower energy use and reduced heat output.

Small Business Bundle participants receive $900 per kW saved when replacing existing lighting with high-efficiency LEDs — more than double the standard rebate of $420 per kW saved. This enhanced incentive typically covers most or all equipment and installation costs. Estimated savings are based on usage history.

Smart thermostats improve heating and cooling efficiency through automation, remote access and other intelligent features.

Small Business Bundle participants earn a $250 rebate per qualifying thermostat installed, compared to $50 under the standard commercial rebate. Eligible thermostats can also be enrolled in Austin Energy’s Power Partner program, allowing businesses to earn bill credits for helping reduce peak energy demand.

Regular HVAC tune-ups extend the life of existing systems and help units recover lost efficiency, reducing the energy needed to keep facilities cool.

Small Business Bundle participants receive a $250 rebate per unit serviced (for non-Packaged Terminal AC units under 5 tons), an increase over the standard commercial rebate of $228.

See austinenergy.com/bundle for incentive details, eligibility and other program information.

Standard Commercial Rebates Increase

Customers save on upfront costs for major system upgrades — they can also save on maintenance, repairs and monthly utility bills in the long term.

Incentives are based on system size and energy savings (per estimated kW saved). Higher-efficiency equipment upgrades unlock higher rebate amounts.
In addition to helping local businesses, Austin Energy’s rebates help support Austin’s climate goals and reduce strain on the electric grid, especially during extreme weather.

See the complete list of Commercial Rebate offerings at austinenergy.com/commercialrebates.