Solar Photovoltaics (PV) Incentives

Austin Energy offers two types of solar PV incentives to our commercial customers:

• Austin Energy’s Commercial Solar Performance-Based Incentive (PBI) earns your business an extra credit on your monthly electric bill for the power your solar PV system generates. In most cases, the rebate level is based on the size of the system. Austin Energy calculates the payment amount by multiplying the rebate level by the monthly system production.
   
• With an Austin Energy Commercial Solar Capacity-Based Incentive (CBI), your business can earn an upfront check that is issued after your solar energy system has been installed. The rebate level is based on the size of the system, and the payment amount is calculated by multiplying the rebate level by the size of the system.

In addition to the commercial solar incentives, all solar systems are eligible to 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 Austin Energy's Solar Bill Credits

With an installed solar PV 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 seamlessly takes over and continues to supply your electricity day or night when your PV system is not producing enough electricity for your building’s needs.

Participating Contractor Required

You must work with a participating contractor to qualify for the PBI. See the Find a Contractor tab for details.

We recommend gathering multiple quotes from our participating contractors. The cost of a solar power installation varies depending on the size and specific details. The participating contractor can estimate the cost and the amount of electricity you can expect from your system.

Once you have selected a contractor, they will submit the incentive application on your behalf.

Nonprofit Customers

Eligible nonprofit customers may choose to receive a PBI or a CBI.

The PBI rebate levels are determined by the size of the system. For PBI details, refer to Installations Smaller than 75 kW and Installations Larger than 75 kW listed on this page.

The CBI offering is summarized as follows:

Installations Smaller Than 75 kW

Commercial customers who install a solar PV system smaller than 75 kW may choose to receive a CBI or a PBI. The chart below summarizes the current offerings.

Installations Larger than 75 kW

Commercial customers who install a solar PV system larger than 75 kW may be eligible for a PBI. The chart below summarizes the current offerings.

CBI Eligibility

• You must have an Austin Energy commercial electric utility account at the service address where the solar PV system will be installed.
• Third-party solar Power Purchase Agreements (PPAs) are not allowed in Austin Energy’s service territory.
• You must use a participating contractor. Click Find a Contractor to get started.
• One incentive application is required per interconnection.
  • For Nonprofits
    • Must submit 501 C3/C4 Documentation
    • Can be eligible for or collect the Investment Tax Credit (ITC) for the project
  • For Small Installations
    • Must install a system < 75 kW-AC

PBI Eligibility

• You must have an Austin Energy commercial electric utility account at the service address where the solar PV system will be installed.
• Third-party solar Power Purchase Agreements (PPAs) are not allowed in Austin Energy’s service territory.
• One incentive application is required per interconnection.
• You must use a participating contractor. Click Find a Contractor to get started.
• Extra Large Commercial (>1 MW) must comply with section D of the Austin Energy Distribution Interconnection Guide (pdf).

The participating 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 and Distribution Interconnection Guide.

1. Review information about our performance-based incentive (PBI) and our capacity-based incentive (CBI) programs.
    
2. Contact Austin Energy’s participating contractors to request bids. Click Find a Contractor to get started. We recommend you get at least three estimates from different companies and check references.
    
3. The participating contractor you select will apply for the Austin Energy incentive on your behalf.
    
4. Austin Energy will review the application to determine eligibility.
    
5. 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 (LOI) to you and the participating contractor. Austin Energy makes no financial commitment to applicants before the LOI is issued. If the project is not completed before the LOI expires, the applicant will need to reapply at the prevailing incentive rate.
    
6. The participating contractor will apply for necessary permits, and then install the solar PV system. 
   
   The participating 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 and Distribution Interconnection Guide
    
7. Once the system passes its inspections, Austin Energy will install a PV meter and your contractor can energize your system.
    
8. After your system has been energized:

   • Commercial 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.

   • Commercial customers who have opted to receive a Capacity-Based Incentive (CBI) will be mailed a check.