FAQs

The Value of Solar (Vos) rate is how Austin Energy credits customers for the solar energy produced by their system. It reflects the value solar provides to the electric system and the Austin community.

Austin Energy is a not-for-profit community-owned utility. The Value of Solar helps make sure solar works fairly for everyone.

• Keeps costs fair for all customers
• Prevents shifting costs to customers without solar
• Supports a reliable electric grid over time
• Encourages steady, responsible growth of solar energy

Yes. All eligible solar customers receive the current Value of Solar rate for their system size for each kilowatt-hour their system produces. Note: Large commercial systems over 1 megawatt (MW) do not receive credits related to transmission costs.

The Value of Solar bill credit is administered as a flat rate. For simplicity, Austin Energy uses the average annual value to determine each year's assessment. The Value of Solar rate is equal to the average of the five previous years' assessments and is updated every three years.

With net metering, solar credits depend on how much electricity you use. With the Value of Solar rate, your solar credit is based on the value of the energy your system produces, not your personal usage or billing tier. Therefore, a customer bill will show:

• Line items for electricity used at standard, tiered rates.
• A Value of Solar line item: “Solar Credit [Generation amount] PV kWh at $[Value of Solar Rate] per kWh”

The rate is based on the real, measurable benefits solar provides to the electric system.

The bill credit is a set rate that averages the value of those benefits throughout the day and year. The rate is applied to 100% of your solar generation.

*For systems with a capacity greater than or equal to 1 MW-ac, Ancillary and Transmission Savings are excluded.

While our customer-generated solar reduces the amount of electricity that Austin Energy purchases from the ERCOT market, it is important to note that solar does not reduce overhead distribution system costs. Customers with solar continue to receive service from the local grid infrastructure, including the poles, wires, transformers, substations, etc.

Learn more about our electric system.

The ‘Avoided Cost Components’ (ERCOT Energy Savings, Ancillary Services Savings, Transmission Savings and Societal Benefits) are summed annually. Every three years, the Value of Solar rate is re-calculated as the average of the previous five years.

Historic Value of Solar rates:

Below are the Avoided Cost Component Values that will be factored into the next rate update, November 2026. Note: These values will be approved through the Austin City Council Budget Review Process.

Value of Solar for Systems <1 Megawatt (MW)

 

Value of Solar for Systems >1 Megawatt (MW)

*For systems with a capacity greater than or equal to 1 MW-ac, Transmission Savings are excluded

No. Your Value of Solar bill credit is based on how much energy your system produces, not how much electricity you use.

Batteries are not factored into the Value of Solar rate. The rate is only applied to energy generated from solar systems.

Excess solar credits will roll over to the next month’s electricity bill’s charges. These credits do not expire, though they have no cash value and will end if the account closes.

Austin Energy’s Solar Insights tool can be accessed by through your account on COAUtilities.com to see your solar generation.

If your system isn’t generating electricity, call your solar installation contractor to troubleshoot. Austin Energy is not responsible for solar system maintenance.