For Your Home

Curious how solar works once it is installed on your home? This interactive breaks down how sunlight becomes electricity, how your home uses it, and how excess energy is shared with the grid and reflected on your bill.

Shade and Sunlight

For solar panels to work effectively, it is important that your roof gets direct sunlight for at least 5–6 hours a day. It's best if there are no large trees, chimneys or other structures shading your roof.

The preferred orientations for solar panels are on a roof that faces south, east or west.

Roof Size and Condition

To minimize maintenance needs through the life of your system, it’s recommended that your roof have at least 10 years of life left. If your roof has damage or may need to be replaced soon, it is best to get it replaced before installing solar.

You'll need to have enough roof space for panels (typically 200-400 square feet).

Home Energy-Efficiency Upgrades

If your home is not energy-efficient, it may be a better investment to upgrade your energy efficiency before installing solar panels.

• Take Austin Energy's Home Energy Quiz to find out if your home qualifies for a no-cost, in-home energy assessment.
• Learn about all of Austin Energy's home energy-efficiency rebates & incentives

As an Austin Energy Residential Solar customer, you’ll continue to pay standard residential rates for the electricity your home uses.

You’ll also receive a monthly bill credit for the solar energy your system generates.

The credit you get is based on a fixed rate of 9.91¢ per kilowatt-hour (kWh) of energy you produce. We call this the "Value of Solar" rate. Want to learn more about the Value of Solar rate? Check out our Value of Solar rates page.

Here’s how this shows up on your monthly electric bill:

• Solar Meter Read: How much energy your solar panels produced
• Revenue Meter Delivered Read: Energy your home used from the grid
• Revenue Meter Received Read: Energy your solar system sent back to the grid
• Value of Solar Bill Credits: The amount you're credited for your solar production

Interactive Residential Solar Bill Explainer

Learn what different line items mean and how the Value of Solar rate affects your bill. 

If you produce more credits than you use, they roll over to the next month. Please note that Value of Solar bill credits apply only to your electric charges, not to other services like water or trash.

Figuring Out Your Payback Period

Estimated Payback Periods are typically calculated by dividing the net total cost of your system by your total estimated savings from solar. At Austin Energy, your 'estimated savings' should be based on the 'estimated earnings' you will receive from Value of Solar bill credits.

Here’s what to consider:

• Upfront cost/monthly payment (for leases): If you are leasing or are purchasing with a loan, make sure to include any required annual payment increases through the life of the system.
• Monthly Value of Solar bill credits: he credits you earn will be based on the Value of Solar rate, which is updated every three years to reflect market conditions. Make sure your solar installer tells you what rate assumption they are using for year one, and at what rate they are assuming it will increase.
• Generation over the life of the system: It is natural for a solar system to generate less energy over time. However, sometimes system production is lower because of system issues that impact performance. Make sure to understand your contractor’s performance guarantee, and how it may affect you financially.
• Maintenance: Solar systems are low maintenance, but you may still have some upkeep over time. When you own a solar system, the responsibility for maintenance is yours. If you are leasing the solar equipment, make sure to understand who is responsible for maintenance, what documentation is needed to initiate repairs with the leasing company and who to contact for maintenance questions.
• Roof condition: If your roof is older or needs repairs, it’s best to handle that before going solar.

One of the first things a contractor may ask for is your electric bill. This helps them figure out what size solar system is right for your home. "System size" typically refers to the cumulative power rating (kW) of the solar panels. To estimate how much energy your system could generate in a year, you can enter the system size (in kilowatts or kW) into the PVWatts Calculator.

Adjust the Size of Your Solar System According to Your Energy Needs

• It’s perfectly acceptable to install a solar array that doesn’t meet 100% of your energy demands.
• Consider sizing your system to match your annual energy needs; this approach will help neutralize your carbon footprint.
• If you choose to oversize your system, be aware that you cannot cash out excess solar credits.

Request Multiple Quotes from Approved Contractors

Find out more in the How to Choose a Contractor section. Be sure to get quotes and any sizing recommendations from multiple contractors.

Solar panels alone won’t keep your lights on during a power outage.

If there’s a power outage, your solar system will automatically shut off to keep utility crews safe while they make repairs.

To keep your home powered during an outage, consider adding a battery to your solar system.

Talk to your contractor about how much backup power you need—this depends on what you want to keep running and for how long during an outage.

• Take Austin Energy's Outage Prep Knowledge Check
• Explore outage prep tips and resources to stay ready in case the power goes out

Customers that install batteries can earn performance rewards with Austin Energy's new demand response pilot program, Power Partner Battery. When you enroll in Power Partner Battery, you allow Austin Energy to use stored energy from your battery during periods of high demand. Power Partner Battery participants help maintain a more resilient energy grid and reduce the need to build new power plants. Check out the Power Partner Battery page to learn more about eligible equipment and how to become a Power Partner.

Only participating solar contractors are eligible to offer Austin Energy’s rebate and incentives to customers who install solar power at their home or business. (All participating contractors must abide by the Austin Energy Code of Conduct and Ethical Requirements (pdf) and the Austin Energy Solar Program Contractor Handbook (pdf) to remain on our participating contractors list.)

You may choose to use a solar company that is not listed, but they cannot offer you a solar rebate from Austin Energy. Austin Energy recommends that all customers check references and get at least three quotes.

Consumer Protection Tips

• Before you start your search, check out our Tips for Avoiding Pitfalls and Selecting a Contractor to stay safe.
• Be careful with online forms that may sell your information to robocallers.
• Use a separate email address for your solar search. For example: solarfor123MainStreet@email.com. This helps you keep solar quotes organized and protects your main inbox from spam.
• Report issues to the Texas Department of Licensing and Regulation.
• Make sure that your proposal is not a Power Purchase Agreement (PPA) style lease.

Tips for Collecting Proposals and Choosing a Contractor

• Use an installation contractor from the Austin Energy Participating Solar Contractors directory. Please note, Austin Energy does not regulate financial companies providing loans or leases associated with solar systems.
• Use this interactive explainer to understand what's included in a typical solar proposal and to ensure it reflects accurate utility rates.
• Reference our helpful one-pager on Questions to Ask Solar Contractors (pdf) to learn more about how to make sure you’re selecting a reputable contractor

Make Sure Each Bid Proposal Includes:

• System Specifications
  • System size (in kilowatts/kW)
  • Expected annual energy production (in kilowatt-hours/kWh)
• Cost and Payments
  • Total cost before and after rebates and tax incentives
  • Payment schedule tied to installation milestones
  • Payment methods, fees, and annual increases
  • Process for sale-of-home/change of ownership for loans or leased systems
• Equipment Details
  • Complete list of included components:
    • Solar panels and mounting racks
    • Inverters and monitoring tools
    • Batteries (if applicable)
• Warranty Information
  • Installer warranty covers workmanship and installation damage
  • Manufacturer warranty covers equipment defects         
    • Be sure to get warranty documents from your installer to keep for your records
  • Performance Guarantee covers differences in generation from production estimates and over the years
  • Not typically covered:
    • Routine panel cleaning
    • Weather damage (hail, falling branches)
    • Future tree trimming/vegetation management
    • Future re-roofing costs
      • Check with your homeowner's insurance for additional coverage options

Key Numbers to Pay Attention To:

• Price per Watt ($/W)
  This tells you how much the system costs based on its size.
  Formula: Total system cost ÷ system size (in watts)
  Keep in mind that things like electrical upgrades, batteries, warranties, or extras like critter guards and smart home features can increase this number.
• Estimated Annual Energy Production (kWh/year)
  Make sure the system’s expected yearly output matches your energy goals.
• Price per Kilowatt-Hour ($/kWh)
  This helps you understand your long-term value.
  Formula: Total system cost ÷ total energy the system is expected to generate over its lifetime
  You can use the full warranty period or choose a shorter time frame for this calculation.
• Inflation Rate
• Production Factor
  This measures how efficiently your system will produce energy.
  Formula: Estimated annual production (in kWh) ÷ system size (in kW)
  In Austin, a good range is 1,100 to 1,500 kWh per kW.
  Factors that affect this include:
  • Roof direction (south-facing is ideal)
  • Roof slope
  • Shade from trees, buildings or roof features
  • Equipment efficiency

Equipment and Warranties

Most systems come with a monitoring app, and you can also use Austin Energy’s Solar Insights tool (available when you log into your account on COAUtilities.com) to see your solar generation.

Once your system is up and running, you’ll start earning Value of Solar (VoS) credits on your monthly bill. Check out the interactive billing explainer here to see how these credits will appear.

If You Want to Own Your Solar Panels

Available Incentives:

• Austin Energy Residential Solar Rebate: You can earn a $2,500 rebate by completing our solar education course and installing a qualifying solar system on your home.* Learn more below.
• Value of Solar Bill Credits: Austin Energy credits residential solar production at the current Value of Solar Rate of 9.91 cents per kWh. Learn more about how customers are billed.
• Tax Benefits: Explore tax benefits for solar installations.
• Property Tax Exemption: Your solar system may qualify for a property tax exemption. Learn more from the State Comptroller Office.

*All solar systems will automatically receive Value of Solar bill credits.

Prerequisites

• You must have an Austin Energy residential electric utility account.
• Your solar system must be new and cannot yet be installed before you apply for a rebate.
• The solar system must be connected to an Austin Energy residential electric account where the system will be installed.

Requirements

• You must use an Austin Energy Participating Contractor to install your solar system - see participating solar contractors.
• The solar system must be 3kW (DC) or larger, and mostly free of shading.
• You must apply for and receive an Austin Energy Solar Rebate Confirmation Letter prior to system installation to be eligible for Austin Energy rebates and incentives.

Exclusions

• Third-party solar Power Purchase Agreements (PPAs) are not allowed in the Austin Energy service territory.

Follow these steps to apply for your $2,500 rebate:

Take the Solar Rebate Quiz and Hire an Approved Contractor

After reading through this page, take our Solar Rebate Quiz linked at the bottom of this section to receive your rebate reference number.

• To take the quiz, be prepared to provide your:
  • contact information
  • electric utility account number (found on your electric bill)
  • address
• Give the quiz reference number to your chosen participating solar contractor for the rebate application. Your contractor will use this number to apply for the rebate on your behalf.
• Hire a participating Austin Energy solar contractor. You will NOT receive a rebate if you hire a contractor who is not on our approved list. Be sure to get at least three quotes before hiring a contractor.

Get Approval and Permits, and Begin Installation

• Your contractor will share with you the Residential Interconnection Agreement Form for you to sign.
• You will need to sign the Customer Agreement Form (CAF) (pdf) with the system details provided from your contractor, then await the rebate confirmation letter before scheduling the installation.
• Install the system:
  • Once your contractor has your system permitted and has received the rebate confirmation letter, you can get your system scheduled for installation.

Inspection and Getting Your System Turned On

• When the system is installed and ready, your contractor will call for a final solar inspection.
• Austin Energy will install the required solar meter after a successful solar inspection – this is when you can turn your system on! At this stage you have Permission to Operate (PTO).
• After your system passes final inspection, you and your contactor will get an email confirming that your rebate has moved onto the final step for processing—Quality Assurance (QA) review.
• Once QA Review passes, the rebate check is sent in the mail. It usually takes 7–10 business days to arrive after processing.

Get Started: Take our Solar Rebate Quiz

• Residential Solar Rebates Guidelines and Customer Agreement Form (CAF) (pdf)
• Reembolso Solar Fotovoltaico Residencial Guías del Programa y Formulario de Acuerdo del Cliente (pdf)
• Residential Solar Rate Schedule (pdf)
• Residential Solar Interconnection Agreement Form (pdf)

Learn More About Shopping for Solar

• Solar Photovoltaic System Installation Steps (pdf)
• Austin Energy Customer Guide: Questions to Ask Solar Contractors (pdf)
• En Español: Guía del cliente de Austin Energy: Preguntas para realizar a los contratistas solares (pdf)
• Check out the Considering Installing Solar Panels at My Home guide from the Public Utilities Commission.