Austin Energy continues to lead in renewable energy adoption with robust solar rebate programs for commercial and nonprofit customers. The utility’s Solar PV rebates encourage local organizations to harness the power of the sun, reduce their energy costs, and support the city’s sustainability goals. Two main programs, the Capacity-Based Incentive (CBI) and the Performance-Based Incentive (PBI), offer flexible options depending on system size, organization type, and long-term energy objectives.

Expanding Solar Access for Businesses and Nonprofits

Through Austin Energy’s solar rebate programs, both small businesses and nonprofits can significantly reduce upfront installation costs. The CBI program provides a one-time upfront payment based on the system’s installed capacity, while the PBI program offers ongoing bill credits based on actual solar energy production.

For nonprofits, the CBI pays 50 cents per watt (up to $60,240), rewarding organizations that invest in sustainable power solutions. Small businesses installing systems under 100 kW can receive 70 cents per watt, with rebates capped at $168,675. These rebates are paid once the solar system is installed and operational, making them a substantial financial boost to cover initial investment costs.

Medium to large businesses, on the other hand, may benefit more from the PBI program. Depending on system size, the PBI provides bill credits over five years based on monthly solar production:

Under 400 kW: 8 cents per kilowatt-hour

400–999 kW: 6 cents per kilowatt-hour

Over 1 MW: 4 cents per kilowatt-hour

The rebate is applied as a monthly credit, directly reducing energy bills and supporting businesses with predictable savings as their systems generate renewable power.

How to Qualify for Solar PV Rebates

The system’s kW-ac size determines eligibility for Austin Energy solar rebates, typically 83% of the kW-dc rating. Both programs require applicants to use an Austin Energy Participating Solar Contractor, ensuring installations meet local codes and quality standards. Contractors handle the application process, including system design and rebate submission, simplifying the path to incentive approval.

Nonprofits must provide documentation verifying their 501(c)(3) or 501(c)(4) status. All applicants, business or nonprofit, must maintain a commercial utility account at the installation address. Importantly, third-party Power Purchase Agreements (PPAs) are not allowed under Austin Energy’s solar incentive programs, ensuring that the customer retains ownership of the system and its long-term benefits.

For larger commercial systems over 1 MW, applicants must also meet interconnection requirements outlined in Austin Energy’s Distribution Interconnection Guide. Meeting all technical and administrative guidelines is essential to secure rebates and credits.

The Dual Value of Solar: Immediate and Long-Term Benefits

The structure of Austin Energy’s incentives allows businesses to tailor their investment approach. The CBI option provides immediate payback, helping smaller installations or nonprofits recover costs quickly. Meanwhile, the PBI option rewards ongoing performance, aligning with organizations that prioritize long-term operational savings and sustainable energy production.

Regardless of the chosen program, solar customers benefit from ongoing energy bill credits for power produced onsite. Even while generating solar electricity, systems remain connected to the grid to ensure a seamless power supply during nighttime or cloudy conditions when generation dips. This hybrid approach maximizes reliability while minimizing costs.

Driving Austin’s Energy Transition

Austin Energy’s commitment to supporting solar adoption across its customer base reflects the city’s broader sustainability vision. These incentives not only make renewable energy more affordable but also stimulate local job growth through the network of participating solar contractors. Businesses adopting solar gain the advantage of lower utility costs, enhanced sustainability credentials, and resilience against rising energy prices, while contributing to Austin’s clean-energy future.

With structured solar credits, upfront rebates, and simplified participation, Austin Energy’s Solar PV programs continue to empower businesses and nonprofits to be part of a brighter, more sustainable Texas.

To see if your business qualifies for this opportunity, click here.