Solar Standard Offer Program

Commercial Customers Empower Community Solar

The Palmer Solar Skyline.

Overview
The Solar Standard Offer program is Austin Energy’s innovative approach for increasing local solar adoption. This program, developed by Austin Energy staff, is the first of its kind in the industry. Designed with stakeholder input, this program promotes the development of Austin Energy’s Community Solar projects on commercial customer-owned rooftops and parking lots, creating benefits for customers, solar developers, and property owners. This program opens a new local solar market, provides transparency to solar developers, allows for long-term growth, creates more choices and opportunities for our customers, and accelerates our progress toward carbon-free generation.

There will be a mandatory contractor training for those interested in participating. To participate, please stay tuned and complete our program interest form below. 

Applications will be accepted starting on Dec 9, 2024.

The Solar Standard Offer Program helps commercial businesses and properties install solar panels for the Community Solar program. Host customers can either install solar panels or lease their space to a third-party system owner. The owner of the solar system will be compensated by Austin Energy for the solar power generated. The solar power produced supports Austin Energy's Community Solar Program, which offers renewable energy to residential customers, including low-income customers who participate in the Customer Assistance Program (CAP). This contributes to the community’s climate, affordability, and energy sustainability goals.

Program Participants

Solar Standard Offer Program Participant Types:

  • System Host: An existing Austin Energy commercial customer willing to host a community solar project on their property.
  • System Owner: Either the system host or a third party that leases space from the system host to install and operate a solar system for the Community Solar program.
  • Participating Solar Contractor: The solar installation company applying for permits and installs the solar system.

Compensation for Solar Generation

Austin Energy will compensate System Owners at the Standard Offer Rate for all solar production:
$0.1124 per kilowatt hour for systems less than 1 MW, and $0.0841 per kilowatt hour for larger systems. The rate will be updated every three years based on a rolling average of five years of avoided cost analysis.

There are no utility bill impacts to the System Host.

  • Benefits

    The Solar Standard Offer Program benefits commercial property owners (System Hosts), System Owners, and the community at large.

    • For System Hosts: Potential leasing income* without upfront solar installation costs. Acknowledgement and appreciation from Austin Energy through program communication.
    • For System Owners: Energy payments (Standard Offer Rate), potential federal tax incentives*, and transparent energy value. Acknowledgement and appreciation through program communication.
    • For the Community: More equitable and accessible renewable energy options for locally installed solar energy and environmental benefits.

    *Denotes benefits not provided nor guaranteed by Austin Energy.

    Participants directly contribute to reducing greenhouse gas emissions through locally installed solar projects and help transition Austin toward a more sustainable energy future.

    These benefits make the Solar Standard Offer Program an attractive option for businesses and property owners looking to support renewable energy while generating financial returns.

  • Eligibility

    Participant types must meet these eligibility requirements to participate in the Solar Standard Offer Program:

    System Hosts must be current Austin Energy commercial customers. If engaging in a lease with a third-party System Owner, the lease cannot be structured in terms of energy generated.

    System Owners must be registered vendors with the City of Austin.

    Participating Contractors must be registered with Austin Energy Solar Programs.

    Solar systems must meet these criteria:

    • Solar Standard Offer systems must be between 50 kW-ac and 10 MW-ac.
    • Solar systems cannot be installed prior to Austin Energy’s review of application and issuance of the Standard Offer Installation Letter of Approval.
    • Solar systems must be interconnected to Austin Energy’s distribution grid.
    • Solar Standard Offer systems are interconnected on the utility side of the meter.
    • Must meet Austin Energy’s interconnection requirements.
  • How to Apply
    1. System Owners should connect with system hosts and participating solar contractors to submit applications to the Solar Standard Offer Program.
      • Solar Standard Offer Program Guidelines (pdf)
    2. The Participating Solar Contractor selected will apply for the Solar Standard Offer Program on the System Owner’s behalf.
      • The contractor will complete a Customer Agreement Form and then seek System Owner and System Host signatures to confirm project details.
    3. Austin Energy will review the application to determine eligibility and program capacity.
    4. Upon initial review, Austin Energy will issue a 180-Day Capacity Encumbrance Letter if the project is deemed eligible and there is program capacity.  
    5. Upon the Encumbrance, the contractor will be asked to submit additional project documentation:
      • Installation Contract <Add link>
      • Austin Energy Distributed Generation Planning Application (DGPA) <Add link>
      • Standard Offer Interconnection Agreement <Add link>
    6. Once fully approved, Austin Energy will issue a Letter of Approval to the System Owner, System Host, and the participating solar contractor:
      • Austin Energy makes no commitment to applicants before the Letter of Approval is issued. Projects must receive Austin Energy Approval to be eligible to receive the Standard Offer Tariff.
    7. The Participating Solar Contractor will apply for necessary permits, schedule a pre-construction meeting with Austin Energy Solar Inspectors, and then install the system.
    8. The contractor will coordinate with the various City of Austin departments to schedule the relevant inspections.
    9. Once the system passes final inspection, Austin Energy will install a meter, and the Participating Solar Contractor can energize the solar system.
    10. After the system has been energized:
      • System Owner complies with Solar Standard Offer Program Guidelines regarding REC retirement and Green-e Certification requirements.
      • System Owner will start to receive payments based on generation. 
  • Find a Participating Solar Contractor

    Only participating solar contractors are eligible to submit applications for the Solar Standard Offer.

    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.

  • Relevant Documents
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Date last reviewed or modified: 11/12/2024