May 27 , 2004 News Media Release

Austin Energy Launches Solar Program

Austin Energy is launching a solar rebate program that will provide some of the highest solar rebates in the country. The program is aimed at both energy diversity and economic development. The Austin City Council today approved $933,000 in Austin Energy funding for the program for the current fiscal year, which ends September 30, 2004.

The solar rebate program will pay 50%-80% of the cost or a maximum of $15,000 for residential solar systems. The maximum rebate for a solar installation at a business is $100,000.

The rebate is $5 per watt, increasing to $6.25 per watt for solar installations that use solar equipment manufactured in Austin.

"This program is not only about decreasing our reliance on fossil fuels and delaying the need for new generation through our green power program," says Juan Garza, General Manager, " but also about making Austin an attractive destination for solar manufacturers."

One kilowatt (kw) equals 1,000 watts:

• A 1-kw solar system is about 120 square feet of solar panels.
• A 1-kw solar system should produce between 1,500-1,700 kilowatt-hours (kWh) of electricity annually
  • This represents $85-$170 worth of electricity annually
  • The average residential customer uses about 12,000 kWh of electricity annually.
• A 1 kw system is expected to cost between $6,000 and $9,000.
• The Austin Energy rebate on a 1 kw system would be ($5 x1,000 watts) $5,000.

How the program works

• Interested customers file an application with Austin Energy.
  • Customer must own the house
  • The roof of the home must be in good condition
  • Deed restrictions must not prohibit the installation of solar systems
  • Solar system may not be removed from AE service territory
• Austin Energy will perform a pre-inspection of a site to determine eligibility for the rebate.
  • The house must demonstrate minimal shading by trees, buildings and other structures
  • Solar panels should generally face the south or west. Austin Energy can deny a rebate based on excessive shading or poor orientation of a planned solar array
• Solar installations must be performed by an installer certified by Austin Energy
  • All solar systems must carry a 5-year warranty
  • Licensed electrical contractors must obtain appropriate permits and perform all electrical interconnections (to the AE electric grid)
• Austin Energy will provide "net metering" for customers on solar systems. Should a solar system produce more power at any given moment than the home consumes, the extra power will flow into the Austin Energy electric gird. In any month when a solar system sends more power into the Austin Energy grid than the homes takes from the grid, the difference or net will result in a credit on the customer's electric bill. The credit will be equal to the net kilowatt-hours (kWh) of electricity fed into the grid times the current fuel charge.

Maintenance

Solar systems are easy to maintain because they have no moving parts. The expected life of solar panels is typically 30-40 years.

Solar systems are quiet and produce no emissions.

Long-term objectives

Austin Energy is has a goal of installing 100 megawatts of solar power in Austin to help meet 15% of its generation needs through renewable energy by 2020. AE will also be installing demonstration solar projects at school, libraries and community centers. Austin Energy is also partnering with other City departments partner in the development of the nation's first "affordable" net-zero energy subdivision. The 100-home subdivision in Southeast Austin will be powered by solar energy.

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For more information, contact Ed Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000