Austin Energy - Commercial Solar PV Incentive Program

Austin Energy offers commercial and nonprofit customers two ways to save on solar installation: a capacity-based incentive providing an upfront check (up to $240,964) based on system size, or a performance-based incentive crediting your monthly bill for power generated (10¢–6¢ per kWh depending on system size, for 5 years). To qualify, you must have an Austin Energy commercial account, use a participating contractor, and meet equipment standards including California Energy Commission-listed PV modules with 10-year warranties; your system cannot exceed 110% of your annual energy consumption.

Participating solar contractors must obtain permits, perform electrical connections, and submit applications on behalf of customers—the contractor manages the multi-step approval process (Customer Agreement Form, Encumbrance Letter, Letter of Intent, and final Austin Energy inspection) before installation. All equipment and installation must carry 10-year warranties, PV modules must be CEC-listed, and systems cannot be sized above 110% of the customer's historical annual consumption; third-party PPAs are not allowed in Austin Energy's service territory.

The program uses two incentive structures—capacity-based (one-time payment capped at $240,964: $1.00/Watt-ac for nonprofits or 70¢/Watt-dc for commercial businesses ≤100 kW-ac) and performance-based (monthly on-bill credits for 5 years at 10¢, 8¢, or 6¢ per kWh based on system size tier). Eligibility requires Austin Energy commercial accounts, participating contractors, and CEC-listed equipment with 10-year warranties; Austin Energy administers three review stages before issuing a Letter of Intent, then conducts final inspection post-installation. The program targets commercial businesses, nonprofits, schools, and government entities in Austin Energy's service territory.