For Your Home

Shade and Sunlight

For solar panels to work effectively, it is important that your roof gets direct sunlight for at least 5–6 hours a day. It's best if there are no large trees, chimneys or other structures shading your roof.

The preferred orientations for solar panels are on a roof that faces south, east or west.

Roof Size and Condition

To minimize maintenance needs through the life of your system, it’s recommended that your roof have at least 10 years of life left. If your roof has damage or may need to be replaced soon, it is best to get it replaced before installing solar.

You'll need to have enough roof space for panels (typically 200-400 square feet).

Home Energy-Efficiency Upgrades

If your home is not energy-efficient, it may be a better investment to upgrade your energy efficiency before installing solar panels.

• Take Austin Energy's Home Energy Quiz to find out if your home qualifies for a no-cost, in-home scoping review
• Learn about all of Austin Energy's home energy-efficiency rebates & incentives

As an Austin Energy Residential Solar customer, you’ll continue to pay standard residential rates for the electricity your home uses.

You’ll also receive a monthly bill credit for the solar energy your system generates.

The credit you get is based on a fixed rate of 9.91¢ per kilowatt-hour (kWh) of energy you produce. We call this the "Value of Solar" rate. Want to learn more about the Value of Solar rate? Check out our Value of Solar rates page.

Here’s how this shows up on your monthly electric bill:

• Solar Meter Read: How much energy your solar panels produced
• Revenue Meter Delivered Read: Energy your home used from the grid
• Revenue Meter Received Read: Energy your solar system sent back to the grid
• Value of Solar Bill Credits: The amount you're credited for your solar production

Interactive Residential Solar Bill Explainer

Learn what different line items mean and how the Value of Solar rate affects your bill. 

If you produce more credits than you use, they roll over to the next month. Please note that Value of Solar bill credits apply only to your electric charges, not to other services like water or trash.

Figuring Out Your Payback Period

Your solar system is an investment—and over time, you can recover your costs through the bill credits you earn. To estimate your payback period, divide your total cost (including financing or interest) by the average amount of bill credits your system is expected to earn each year.

Here’s what to consider:

• Upfront cost: This includes equipment, labor, permits—minus any rebates, tax credits, or interest if you're financing.
• Monthly Value of Solar bill credits: The credits you earn will be based on the Value of Solar rate, which is updated every three years to reflect market conditions. Make sure your solar installer tells you what rate they’re using for year one, and whether they’re assuming it will increase.
• Maintenance: Solar systems are low maintenance, but you may still have some upkeep over time.
• Roof condition: If your roof is older or needs repairs, it’s best to handle that before going solar.

One of the first things a contractor may ask for is your electric bill. This helps them figure out what size solar system is right for your home. "System size" typically refers to the cumulative power rating (kW) of the solar panels. To estimate how much energy your system could generate in a year, you can enter the system size (in kilowatts or kW) into the PVWatts Calculator.

Adjust the Size of Your Solar System According to Your Energy Needs

• It’s perfectly acceptable to install a solar array that doesn’t meet 100% of your energy demands.
• Consider sizing your system to match your annual energy needs; this approach will help neutralize your carbon footprint.
• If you choose to oversize your system, be aware that you cannot cash out excess solar credits.

Request Multiple Quotes from Approved Contractors

Find out more in the How to Choose a Contractor section. Be sure to get quotes and any sizing recommendations from multiple contractors.

Solar panels alone won’t keep your lights on during a power outage.

If there’s a power outage, your solar system will automatically shut off to keep utility crews safe while they make repairs.

To keep your home powered during an outage, you’ll need to add a battery to your solar system.

Talk to your contractor about how much backup power you need—this depends on what you want to keep running and for how long during an outage.

• Take Austin Energy's Outage Prep Knowledge Check
• Explore outage prep tips and resources to stay ready in case the power goes out

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 Program Contractor Handbook (pdf) to remain on our participating contractors list.)

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. Austin Energy recommends that all customers check references and get at least three quotes.

Beware of Scams and Misinformation

• Watch out for solar scams. Before you start your search, check out our Tips for Avoiding Pitfalls and Selecting a Contractor to stay safe.
• Be careful with online forms that may sell your information to robocallers.
• Use a separate email address for your solar search. For example: solarfor123MainStreet@email.com. This helps you keep solar quotes organized and protects your main inbox from spam.

Tips for Collecting Bids and Choosing a Contractor

• Use a contractor from the Austin Energy Participating Solar Contractors directory
• Reference our helpful one-pager on Questions to Ask Solar Contractors (pdf) to learn more about how to make sure you’re selecting a reputable contractor

Make Sure Each Bid Includes:

• System Specifications
  • System size (in kilowatts/kW)
  • Expected annual energy production (in kilowatt-hours/kWh)
  • Total cost before and after rebates and tax incentives
  • Important: The federal solar tax credit is set to expire on December 31, 2025. Homeowners wishing to claim this credit must have their solar systems installed and operational by this date
  • Payment schedule tied to installation milestones
• Equipment Details
  • Complete list of included components:
  • Solar panels and mounting racks
  • Inverters and monitoring tools
  • Batteries (if applicable)
• Warranty Information
  • Installer warranty covers workmanship and installation damage
  • Manufacturer warranty covers equipment defects and performance
    • Be sure to get warranty documents from your installer to keep for your records
  • Not typically covered:
    • Routine panel cleaning
    • Weather damage (hail, falling branches)
    • Future re-roofing costs
      • Check with your homeowner's insurance for additional coverage options

Key Numbers to Pay Attention To:

• Price per Watt ($/W)
  This tells you how much the system costs based on its size.
  Formula: Total system cost ÷ system size (in watts)
  Keep in mind that things like electrical upgrades, batteries, warranties, or extras like critter guards and smart home features can increase this number.
• Estimated Annual Energy Production (kWh/year)
  Make sure the system’s expected yearly output matches your energy goals.
• Price per Kilowatt-Hour ($/kWh)
  This helps you understand your long-term value.
  Formula: Total system cost ÷ total energy the system is expected to generate over its lifetime
  You can use the full warranty period or choose a shorter time frame for this calculation.
• Inflation Rate
• Production Factor
  This measures how efficiently your system will produce energy.
  Formula: Estimated annual production (in kWh) ÷ system size (in kW)
  In Austin, a good range is 1,100 to 1,500 kWh per kW.
  Factors that affect this include:
  • Roof direction (south-facing is ideal)
  • Roof slope
  • Shade from trees, buildings or roof features
  • Equipment efficiency
• Equipment and Warranties

If You Want to Own Your Solar Panels

Available Incentives:

• Austin Energy Residential Solar Rebate: You can earn a $2,500 rebate by completing our solar education course and installing a qualifying solar system on your home.* Learn more below.
• Value of Solar Bill Credits: Austin Energy credits residential solar production at the current Value of Solar Rate of 9.91 cents per kWh. Learn more about how customers are billed.
• Tax Benefits: Explore tax benefits for solar installations.
• Property Tax Exemption: Your solar system may qualify for a property tax exemption. Learn more from the State Comptroller Office.

*All solar systems will automatically receive Value of Solar bill credits.

Leased systems are not eligible for the Austin Energy Residential Solar Rebate. Austin Energy does not offer additional rebates for battery systems.

Prerequisites

• You must have an Austin Energy residential electric utility account.
• Your solar system must be new and cannot yet be installed before you apply for a rebate.
• The solar system must be connected to an Austin Energy residential electric account where the system will be installed.

Requirements

• You must use an Austin Energy Participating Contractor to install your solar system - see participating solar contractors.
• The solar system must be 3kW (DC) or larger, and mostly free of shading.
• You must apply for and receive an Austin Energy Solar Rebate Confirmation Letter prior to system installation to be eligible for Austin Energy rebates and incentives.

Exclusions

• Third-party solar Power Purchase Agreements (PPAs) are not allowed in the Austin Energy service territory.
• Leased solar systems are not eligible to participate in this program.

Follow these steps to apply for your $2,500 rebate:

Register and Hire an Approved Contractor

1. After reading through this page, take our Solar Rebate Quiz linked at the bottom of this section to receive your rebate reference number.
•  To take the quiz, be prepared to provide your:
  • contact information
  • electric utility account number (found on your electric bill)
  • address
2. Give the quiz reference number to your chosen participating solar contractor for the rebate application. Your contractor will use this number to apply for the rebate on your behalf.
3. Hire a participating Austin Energy solar contractor. You will NOT receive a rebate if you hire a contractor who is not on our approved list. Be sure to get at least three quotes before hiring a contractor

Get Approval and Permits, and Begin Installation

1. You will need to sign the Customer Agreement Form (CAF) (pdf) with the system details provided from your contractor, then await the rebate confirmation letter before scheduling the installation.
2. Install the system:
• Once your contractor has your system permitted and has received the rebate confirmation letter, you can get your system scheduled for installation.

Inspection and Getting Your System Turned On

1. When the system is installed and ready, your contractor will call for a final solar inspection.
2. Austin Energy will install the required solar meter after a successful solar inspection – this is when you can turn your system on!
3. For rebated projects:
   • After your system passes final inspection, you and your contactor will get an email confirming that your rebate has moved onto the final step for processing--Quality Assurance (QA) review.
   • Once QA Review passes, the rebate check is sent in the mail. It usually takes 7–10 business days to arrive after processing.
4. System Operation and Monitoring
• Ask your contractor how to track your system’s performance. Most systems come with a monitoring app, and you can also use Austin Energy’s Solar Insights tool (available when you log into your account on COAUtilities.com) to see your solar generation.
• Once your system is up and running, you’ll start earning Value of Solar (VoS) credits on your monthly bill. Check out the interactive billing explainer here to see how these credits will appear.

• Residential Solar Rebates Guidelines and Customer Agreement Form (CAF) (pdf)
• Reembolso Solar Fotovoltaico Residencial Guías del Programa y Formulario de Acuerdo del Cliente (pdf)
• Residential Solar Rate Schedule (pdf)

Learn More About Shopping for Solar

• Solar Photovoltaic System Installation Steps (pdf)
• Austin Energy Customer Guide: Questions to Ask Solar Contractors (pdf)
• En Español: Guía del cliente de Austin Energy: Preguntas para realizar a los contratistas solares (pdf)