Austin has long been a leader in clean energy policy, and the city’s municipal utility, Austin Energy, continues to set the standard with forward thinking solar programs. For commercial and nonprofit customers, Austin Energy offers three key incentives that make solar a smart financial decision: the Performance Based Incentive (PBI), the Value of Solar (VoS) rate, and the Solar Standard Offer Program.

Big Sun Solar is a registered and approved Austin Energy commercial solar contractor, so our customers can qualify for all three programs through one experienced Texas EPC partner.

1. Austin Energy’s Commitment to Local Solar

Austin Energy has been a pioneer in distributed solar generation for more than a decade. The utility’s commercial solar programs are designed to reduce carbon emissions, lower peak grid demand, and make renewable energy more accessible to local businesses and organizations.

By combining Austin Energy’s incentives with federal tax credits, local businesses can significantly reduce upfront costs and enjoy steady long-term energy savings.

2. The Performance-Based Incentive (PBI) for Commercial Systems

The Performance-Based Incentive (PBI) is Austin Energy’s primary solar program for commercial and nonprofit customers.

Instead of providing an upfront rebate, Austin Energy rewards customers based on actual solar production. The PBI pays a fixed dollar amount per kilowatt-hour (kWh) of energy generated by the system over a 10-year period.

• Typical PBI rates range from $0.05 to $0.09 per kWh, depending on the program year and customer class.
• Payments are issued as credits on the customer’s Austin Energy bill or directly to the account owner.
• To qualify, the system must be designed and installed by an approved Austin Energy solar contractor, such as Big Sun Solar.

Because the PBI is based on performance, system quality and reliability are critical. Big Sun Solar’s in-house engineering and construction teams ensure every system meets Austin Energy’s standards for long-term output.

3. Understanding the Value of Solar (VoS)

Austin Energy’s Value of Solar (VoS) rate is another way the utility compensates customers for generating solar energy.

Under this model, the energy produced by the solar system is credited to the customer’s bill at a VoS rate that reflects the utility’s avoided energy costs and grid benefits.

This structure ensures that customers receive fair compensation for every kilowatt-hour generated, even if they do not use all of the energy on-site. The VoS credit is applied monthly and is reviewed periodically to reflect changing energy market conditions.

4. The Solar Standard Offer Program for Commercial Properties

In addition to behind the meter incentives, Austin Energy offers the Solar Standard Offer Program. This program expands Austin Energy’s Community Solar supply by encouraging commercial properties to host solar arrays on rooftops or parking lot canopies.

Here is how the Solar Standard Offer Program works:

• Commercial customers can participate as a System Host by allowing a community solar array to be installed on their rooftop or parking lot canopy.
• The host can either own the system or lease the space to a third party System Owner who finances, builds, and operates the project.
• Austin Energy compensates the System Owner for every kilowatt hour produced at a Standard Offer Rate that is tied to the utility’s avoided cost of energy through the Standard Offer Rider.
• The solar energy supports Austin Energy’s Community Solar Program, including access for residential and low income customers.
• Austin Energy retains the renewable energy credits from these projects, while the system owner can still benefit from available federal tax incentives.

For many property owners, the Solar Standard Offer Program is a strong option when a building has multiple tenants, limited on site load, or when the host prefers lease revenue without taking on system ownership. It allows commercial rooftops and carports to generate steady income while helping Austin expand local clean energy.

Big Sun Solar helps Austin businesses evaluate whether the Solar Standard Offer Program or a traditional on site PBI and Value of Solar system is the better fit. We also coordinate with third party owners when a host wants a lease based structure.

‍5. Combining Austin Energy Incentives with Federal Tax Credits

Austin Energy’s programs can be combined with federal tax incentives to further improve project economics.

Commercial solar installations qualify for the 30 percent Federal Investment Tax Credit (ITC), as well as potential bonus credits for projects that meet specific Energy Community, low-income, or domestic content criteria. Businesses can also apply accelerated depreciation (MACRS) to recover most of the system’s cost within five years.

When combined, Austin Energy’s PBI and VoS programs with federal incentives can reduce total project costs by 50 percent or more, making solar a highly attractive investment for Austin businesses.

6. Who Qualifies for Austin Energy’s Commercial Solar Programs

To qualify for Austin Energy’s solar incentives, projects must:

• Be located within Austin Energy’s service territory.
• Use equipment that meets the utility’s program standards.
• Be installed by a registered and approved Austin Energy solar contractor, such as Big Sun Solar.
• Complete all program applications and interconnection requirements before construction begins.

Big Sun Solar manages the full process, from engineering and application to interconnection and verification, ensuring clients receive their full incentive value.

7. Why Work with a Local EPC Partner

Austin Energy’s incentive programs require careful design and documentation to maximize benefits. Big Sun Solar’s in-house engineers and construction teams have deep experience with Austin Energy’s technical standards and approval process.

Our team ensures every system is optimized for long-term performance and qualifies for both PBI and VoS compensation, delivering strong ROI and predictable savings for years to come.

The Bottom Line

Austin Energy’s solar programs make the city one of the most forward-thinking solar markets in Texas. Through the Performance-Based Incentive (PBI), the Value of Solar (VoS) rate, and the Solar Standard Offer Program, local businesses can turn rooftop or carport space into a reliable financial asset.

Big Sun Solar is proud to help Austin businesses, nonprofits, and institutions take advantage of these programs while combining them with federal incentives to achieve maximum savings and sustainability impact.

Ready to explore Austin Energy’s commercial solar programs?
Contact Big Sun Solar to schedule a consultation and learn how to qualify for Austin Energy’s solar incentives.