Incentives for Solar Systems Available for Your Business

The Mothers’ Milk Bank at Austin (MMBA) facility activated 656 solar panels on its roof. The solar installation 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

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 — average monthly savings of $2,900 or roughly 98% of their electricity costs.
• 9.91 cents/kWh 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 installing solar systems. Customers can apply for one of two. Eligibility for Austin Energy programs is dependent on kW-ac, which is 83% of the dc system sizing.

1. 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 usually based on the size of the system. Austin Energy determines the payment by multiplying the rebate level with the monthly production of the system.
   • Commercial Solar PBI Guidelines (pdf)
   • PBI Customer Agreement Form (pdf)
2. Capacity-Based Incentive (CBI) Your nonprofit or small business may receive an upfront payment once the solar energy 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 solar systems earn monthly bill credits that apply towards the electric portion of the bill for the energy produced by their on-site energy system.

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 power installation varies depending on the 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.

Nonprofit Customers     

	Capacity-Based Incentive (CBI)	Performance-Based Incentive (PBI)
System Size	Any	Any
Rebate Level	70¢ per Watt-DC (The CBI payment amount caps out at $168,675)	<400 kW - 8¢ per kWh 400-999 kW - 6¢ per kWh >1 MW - 4¢ per kWh
Payment Method	One-time check	Bill credits or check to customer (upon request)
Duration	N/A	5 years
Payment Calculation	System size (Watts-DC) x rebate level	Monthly production x rebate level

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

Business with Installations Smaller than 100 kW

	Capacity-Based Incentive (CBI)	Performance-Based Incentive (PBI)
System Size	≤100 kW	>100 kW
Rebate Level	50¢ per Watt-DC (The CBI payment amount caps out at $60,240)	8¢ per kWh
Payment Method	One-time check	Bill credits or check to customer (upon request)
Duration	N/A	5 years
Payment Calculation	System size (Watts-DC) x rebate level	Monthly production x rebate level

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

Business with Installations Larger than 100 kW

	Medium	Large	Extra Large
System Size	<200 kW	200-999 kW	>1 MW
Rebate Level	8¢ per kWh	6¢ per kWh	4¢ per kWh
Payment Method	Utility Bill credit
Duration	5 years
Payment Calculation	Monthly production x rebate level

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

NOTE: all requirements listed in the guidelines must be met in order to receive these incentives.

Capacity-Based Incentive (CBI) Eligibility

• For Non-Profits
  • 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.
  • Must submit 501 C3/C4 Documentation.
• For Businesses with Installations Smaller Than 100 kW
  • 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.
  • 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) 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)
   • Commercial Solar CBI Guidelines (pdf)
2. Contact participating solar contractors to request bids.
   • Austin Energy recommends to get 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 will review the application to determine eligibility.
   • The contractor will complete a Customer Agreement Form and then seek your signature to confirm project details.
   • Upon initial review, Austin Energy will issue an Encumbrance Letter if your project is deemed eligible.
   • Upon the Encumbrance, your contractor will be asked to submit additional project documentation.
   • Once fully approved, Austin Energy will issue a Letter of Intent to you and the participating solar 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 will apply for necessary permits, and then install the system.
   • The contractor will coordinate with the various City of Austin departments to schedule the 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 will install a PV meter and your contractor can energize your system.
6. After your system has been energized:
   • Customers who have opted to receive a Performance-Based Incentive (PBI) will begin to receive PBI credits on the monthly bill in addition to the standard solar credits.
   • Customers who have opted to receive a Capacity-Based Incentive (CBI) will be mailed a check.

Only participating solar contractors are eligible to offer Austin Energy’s rebate and incentives to customers who install solar power at their home or business.

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 still choose to use a solar company that is not listed, but they cannot offer you a solar rebate or incentive from Austin Energy.

With an installed solar system, your business will remain connected to the grid. While you generate a portion of your own electricity when the sun is shining, Austin Energy continues to supply your electricity day or night when your system is not producing enough electricity for your building’s needs.

• Commercial Solar PBI Guidelines (pdf)
• Commercial Solar CBI Guidelines (pdf)