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Incentives/Policies for Renewables & Efficiency

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Austin Energy - Value of Solar Residential Rate   

Last DSIRE Review: 01/31/2014
Program Overview:
State: Texas
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics
Applicable Sectors: Residential
Applicable Utilities:Austin Energy
System Capacity Limit:20 kW
Web Site:
Authority 1:
Designing Austin Energy's Solar Tariff Using a Distributed PV Value Calculator

Austin Energy, the municipal utility of Austin Texas, offers the Value of Solar rate for residential solar photovoltaic (PV) systems. The Value of Solar tariff, designed by Austin Energy and approved by Austin City Council in June 2012, will be available for all past, present and future residential solar customers beginning October 1, 2012. This tariff replaces net billing for residential solar PV systems no larger than 20 kilowatts (kW). 

Under this tariff, residential customers are credited monthly for their solar generation based on the Value of Solar energy generated from their distributed PV systems. The initial solar tariff is $0.128 per kilowatt hour (kWh) and was calculated by using algorithms and web-based calculations developed Austin Energy and Clean Power Research. Billable kWh under this rate schedule shall be based upon the customer's total energy consumption during the billing month, and non-kWh-based charges under this rate schedule will remain unaffected. The tariff will be administratively adjusted annually, beginning with each year's January billing month.

The Value of Solar rate is based upon several factors* including: loss savings, energy savings, generation capacity savings, fuel price hedge value, transmission and distribution capacity savings and environmental benefits. Taken together, these savings are intended to reflect the value of distributed solar energy to the utility—a “break-even” value for a specific kind of distributed generation resource, and a value at which the utility is economically neutral to whether it supplies such a unit of energy or obtains it from the customer.

All systems must meet the requirements of Austin Energy's interconnection guidelines and the customer is responsible for all interconnection costs. Interconnection agreements have a minimum term of one year, unless the customer is a participant in the Austin Energy Solar PV Rebate Program, in which case the minimum term is five years. Agreements will be renewed automatically each year unless terminated by either party (requires 60-day written notice).

*Tariff calculations assume south-facing PV systems with 30-degree tilts.

  Austin Energy
721 Barton Springs Road
Austin, TX 78704
Phone: (512) 482-5346
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.