Solar Incentives for Your Business

Mothers’ Milk Bank at Austin (MMBA) installed 656 solar panels on its roof. The solar array reduces high operating costs for the building, which houses walk-in freezers, offices, community rooms, and a research lab. “It makes the most sense to use our resources for families in need and use the sun to provide the energy we need to save babies and serve families,” says Kim Updegrove, Executive Director of MMBA.

The facility is powered by rooftop solar, made possible in part by an Austin Energy Solar Incentive.

Project Design Details

656 solar panels.

269 kW total system size.

Austin Energy Solar Incentives

• $268,960 up-front incentive from Austin Energy Capacity-Based Incentive (CBI) at $1.00/Watt installed.*
• Value of Solar Bill Credits provide average monthly savings of $2,900 or roughly 98% of their electricity costs.
• Value of Solar energy production credit from Austin Energy.

Download the case study for Mothers’ Milk Bank at Austin (pdf)

Austin Energy offers two solar incentive options to business and nonprofit customers interested in owning and installing a solar system. Customers may apply for one of the two incentives. Eligibility for Austin Energy programs is dependent on kW-ac, which is 83% of the dc system sizing.

Performance-Based Incentive (PBI) Your business may be eligible to earn an additional credit on your monthly electricity bill for the power generated by your solar system. The rebate amount is based on the generation of the system. Austin Energy determines the payment by multiplying the rebate level with the system’s monthly production. 

• Commercial Solar PBI Guidelines (pdf)
• PBI Customer Agreement Form (pdf)

Capacity-Based Incentive (CBI) Your nonprofit or small business may receive an upfront payment once the solar system has been installed. This incentive is based on the size of your system. 

• Commercial Solar CBI Guidelines (pdf)
• CBI Customer Agreement Form (pdf)

Additionally, all active solar systems earn monthly bill credits that are automatically applied towards the electric portion of the property’s utility bill.

Learn more about the Value of Solar Bill Credit. 

Work with an Austin Energy Solar contractor to qualify for incentives and rebates.

Austin Energy recommends gathering multiple quotes from participating solar contractors. The cost of a solar installation varies depending on system size and customer type. 

Participating contractors estimate the cost and the amount of electricity you can expect from your system based on their system design. Once you have selected a contractor, they will submit the incentive application on your behalf. See Participating Solar Contractors for more details.

*Note: For all Austin Energy Solar Programs, eligibility is determined by kW-ac, equivalent to 83% of the kW-dc system rating.

*Note: For all Austin Energy Solar Programs, eligibility is determined by kW-ac, equivalent to 83% of the kW-dc system rating.

NOTE: All guideline requirements must be met in order to receive these incentives.

Capacity-Based Incentive (CBI) Eligibility

• For Nonprofits
  • You must have an Austin Energy commercial electric utility account at the service address where the solar PV system will be installed.
  • You must use a participating solar contractor. You must submit 501 C3/C4 documentation.
• For Businesses with Installations Smaller Than 100 kW-ac
  • You must have an Austin Energy commercial electric utility account at the service address where the solar PV system will be installed.
  • You must use a participating solar contractor to be eligible for an Austin Energy Incentive.
  • You must install a system < 100 kW-ac.

Third-party solar Power Purchase Agreements (PPAs) are not allowed in Austin Energy’s service territory.

Performance-Based Incentive (PBI) Eligibility

• You must have an Austin Energy commercial electric utility account at the service address where the solar system will be installed.
• One incentive application is required per interconnection.
• You must use a participating solar contractor to be eligible for an Austin Energy Incentive.
• Extra Large Commercial (>1 MW-ac) must comply with section D of the Austin Energy Distribution Interconnection Guide (pdf).

Third-party solar Power Purchase Agreements (PPAs) are not allowed in Austin Energy’s service territory.

1. Determine which Austin Energy Solar Incentive is right for your business or non-profit: Performance-Based Incentive (PBI) or Capacity-Based Incentive (CBI)
   • Commercial Solar PBI Guidelines (pdf)
   • PBI Customer Agreement Form (pdf)
   • Commercial Solar CBI Guidelines (pdf)
   • CBI Customer Agreement Form (pdf)
2. Contact participating solar contractors to request bids.
   • Austin Energy recommends obtaining at least three estimates from different companies.
3. The participating solar contractor you select will apply for the Austin Energy incentive on your behalf.
   • Austin Energy reviews the application and approves project eligibility.
   • The contractor completes a Customer Agreement Form and seeks your signature to confirm project details.
   • Austin Energy conducts a second review and, upon approval, issues an Encumbrance Letter.
   • The contractor submits additional project documentation.
   • Austin Energy conducts a third review and, upon approval, issues a Letter of Intent to you and the contractor.
     
     • Austin Energy makes no financial commitment to applicants before the Letter of Intent (LOI) is issued. If the project is not completed before the LOI expires, the applicant will need to reapply at the prevailing incentive rate.
     • Projects installed before receiving Incentive Program approval from Austin Energy will not be eligible for program incentives.
4. Your solar contractor applies for necessary permits, and then install the system.
   • The contractor coordinates with various City of Austin departments to schedule relevant inspections.
     • Included is the Austin Energy final inspection to ensure proper installation and compliance with Austin Energy's Incentive Program Guidelines, National Electric Code, and Austin Energy's Design Criteria Manual (pdf) and Distribution Interconnection Guide (pdf). 
5. Once the system passes its inspections, Austin Energy installs a PV meter and your contractor energizes your system.
6. After your system is energized:
   • Customers who have opted to receive a Performance-Based Incentive (PBI) begin receiving PBI credits on their monthly bills (in addition to the standard solar credits).
   • Customers who have opted to receive a Capacity-Based Incentive (CBI) are mailed a check.

Only participating solar contractors are eligible to offer Austin Energy solar rebates and incentives.

All participating contractors must abide by the Austin Energy Code of Conduct and Ethical Requirements (pdf) and the Austin Energy Solar Incentive Program Contractor Handbook (pdf) to remain on our participating contractors list.

Find a participating solar contractor.

You may choose to use a solar company that is not listed, but they cannot offer Austin Energy solar rebates or incentives.

• Commercial Solar PBI Guidelines (pdf)
• Commercial Solar PBI Customer Agreement Form (CAF, pdf)
• Commercial Solar CBI Guidelines (pdf)
• Commercial Solar CBI Customer Agreement Form (CAF, pdf)