Austin Energy: the rebate and the credit
The rebate: $4,000
Austin Energy offers a $4,000 rebate for eligible home solar projects. Per Austin Energy, you must:
- have an Austin Energy residential electric account at the home;
- install a new system that is not installed before you submit the rebate;
- use an Austin Energy participating contractor ("You will NOT receive a rebate if you hire a contractor who is not on our approved list");
- install a system of 3 kW (DC) or larger that is mostly free of shading;
- receive the Solar Rebate Confirmation Letter before the system is installed.
The steps: take the Solar Rebate Quiz (you will need your account number and address), keep the rebate reference number, hire a participating contractor, give them the number, sign the Residential Interconnection Agreement and Customer Agreement forms, wait for the letter, then install. After inspection and QA review the check is mailed, 7 to 10 business days.
The bill credit: 12.89¢ per kWh
You keep paying standard residential rates for what the house uses, and get a monthly credit for all the energy your system generates at the Value of Solar rate, 12.89¢ per kWh. Extra credit rolls to the next month. It applies only to electric charges, not water or trash, and you cannot cash out excess credits. The rate is updated every three years.
What Austin Energy says to watch for
- Shade and sun: the roof should get direct sun at least 5 to 6 hours a day.
- Roof: at least 10 years of life left before installing solar.
- Austin Energy does not allow residential power purchase agreements (PPAs) in its territory.
- Solar alone does not keep the lights on in an outage; it shuts off to protect line crews. A battery does, and Austin Energy has a Power Partner Battery pilot.
Source: Austin Energy, "For Your Home", last reviewed 10/01/2026 (read October 28, 2026): austinenergy.com/green-power/solar-solutions/for-your-home.