Austin Energy (TX) Guide | Palmetto Installer Guides

Overview

Palmetto LightReach is now offering Solar and Battery Storage Lease products to Austin Energy's more than 500,000 residential customers through our network of Participating Installer Partners.

All Palmetto LightReach customers in Austin Energy are eligible for Austin Energy's $4,000 Solar Rebate.

Here's what to know:

We will require all projects be eligible and participate in the AE Solar Rebate Program
Customers are obligated to complete Austin Energy’s Solar Rebate Education Course/Quiz as part of the Rebate acceptance process.
Installers: We will require proof of Rebate application acceptance and CAF as part of M1

Austin Energy $4,000 Solar Rebate

The rebate increased from $2,500 to $4,000 effective July 1, 2026.
Customers who lease their solar system are eligible for the rebate.
Customers must complete Austin Energy's Solar Rebate Education Course/Quiz as part of the rebate acceptance process.
Proof of Rebate application acceptance is required as part of M1.
After inspection and the EPC/installer passes Austin's Quality Assurance review and receives Permission to Operate (PTO), customers can expect their $4,000 rebate check within 7–10 business days. The rebate will be coming from the utility.
Customers who have received a solar residential rebate since May 2018 are not eligible to apply for a rebate at the same address.

Austin Energy has now integrated their interconnection, solar education, and rebate processes to be fully inclusive and permissive of lease projects.

Austin Energy's Value of Solar Rate (VOS)

Value of Solar Rate (VOS) is the most unique solar policy in the United States. It's similar to Feed-In-Tariffs used in Australia and Europe.

Austin Energy installs a solar production meter to measure Total Solar Generation.

100% of Solar Production is multiplied by the VOS rate for a utility bill credit. The VOS rate is currently 9.91 cents per kWh.

Total Home Consumption -- both directly from solar or the grid -- is charged the tiered, residential utility rate that you pay today.

Click Here for Sample Bill

How Does Value of Solar Work?

Production: Austin Energy meters your solar production and credits 100% of that production at the Value of Solar rate (currently 9.91 cents/kWh).

Consumption: Austin Energy charges solar customers for all their energy consumption. Whether energy comes from your solar system or the grid, you will see Total kWh Consumed on your utility bill charged the retail utility rate. The average residential rate per kWh in 2026 in Austin is 12 cents per kWh.

Solar Credit: Austin Energy applies your Solar Bill Credit to your electric bill charges. Excess Solar Bill Credit carries over month-to-month and is non-transferable. Your Solar Bill Credit only applies to your electric charges. It does not apply to any other utility services, such as water, solid waste, street services, etc.

M1 Requirements:

Install Partners Requirements:

A completed, accurate, and executed Solar Rebate Customer Agreement Form (CAF)
A copy of the Rebate Confirmation Letter from Austin Energy

Click for Rebate Form Example

We have included in our lease agreement the Austin Energy Residential Solar Leasing Attestation and Disclosure Form Supplemental Document ( This is not a requirement for M1). It is Executed and Signed as part of Agreement, and EPC Partner will use as part of the Austin Energy Interconnection process.

Click Here for more info on Residential Interconnection Agreement

We’ve included the entire (4) page Residential Solar Interconnection Agreement Form (pdf) as part of our Lease Agreement packet in Austin Energy

Document	Pages	Description	Action required
Residential Interconnection Agreement	Pages 1–2	Standard Austin Energy interconnection form included in the Lease Agreement packet.	Customer must enter their Austin Energy Account # in the first section before signing.
Residential Solar Leasing Attestation and Disclosure Forms	Pages 3–4	Embedded in the Lease Agreement packet so both parties can review and sign at contract execution.	Palmetto (as Lessor) is required to countersign to confirm acceptance and support Interconnection Agreement and PTO approval. Customer also signs at point of contract execution.
Completed packet (PDF)	All pages	Final signed documents ready for submission to Austin Energy.	EPC Installer retrieves and saves completed documents as PDFs, then submits to Austin Energy as part of the Interconnection Approval process.

LICENSING & COMPLIANCE

To get started, Installer Partners must submit requisite licenses to Palmetto's Compliance team before pricing is unlocked and Lease agreements can be originated.

Participating Solar Contractors agree to conduct business ethically and follow Austin Energy’s contractor handbook along with Austin Energy Code of Conduct and Ethical Requirements
All Palmetto EPC/Installation Partners who wish to originate leases in Austin Energy territory MUST BE AUSTIN ENERGY APPROVED ‘PARTICIPATING SOLAR CONTRACTORS’
Austin Energy will be set up as a separate market/state in the portal to allow this supplemental license requirement and pricing enablement.

Certification & Onboarding:

Partners interested can follow a few simple steps to request access.

LightReach will review submissions within five (5) business days.
Updates are provided via the submission ticket.

FAQ

Question	Answer
How does the Austin Energy lease differ from other TX utilities?	No references to "offset" (not applicable under VoS tariff) New "Local Incentives" section: federal tax credits stay with Palmetto; Austin Energy rebate flows to customer No language implying "purchasing or selling electricity" Customers notified if system joins Grid Services or Demand Response programs.
Why are pricing options limited in Austin Energy?	The VoS tariff credits all generation at a fixed rate (currently 9.91¢/kWh). To deliver a positive value proposition, lease rates must stay below that rate — which constrains the available options.
Is Domestic Content pricing the same as the rest of Texas?	Yes.
Will standalone Energy Backup batteries be available?	Not yet. Discussions with Austin Energy are ongoing; activation expected soon.
How much is Austin Energy's Solar Rebate?	$4,000! Austin Energy increased the rebate from $2,500 to $4,000 on July 1, 2026. *Customers who have received a solar residential rebate since May 2018 are not eligible to apply for a rebate at the same address.
Do Leased Solar Systems qualify for the rebate?	YES! All Palmetto Lightreach solar customers in Austin Energy are eligible for Austin Energy’s $4,000 Solar Rebate!* Work with your Austin Energy Participating Contractor for details and timing of your $4,000 rebate check from Austin Energy. It's mailed to you after the final inspection and documentation approvals.
How do I calculate my Lease savings with the VOS rate?	You will save the difference between the VOS rate and your Lease cost per kWh. Here's how to calculate it: Locate your Palmetto Lease agreement and find your Starting Lease Payment and Estimated Annual Production the first year. Multiply your Starting Lease Payment by 12 months and divide by the Estimated Annual Solar Production. For example, $70.83 * 12 months divided by 10,000 kWh annual production the first year = 8.5 cents per kWh. You should save the difference of the VOS rate and your Lease cost per kWh. Continuing the example: 9.91 cent VOS - 8.5 cent Lease Cost = 1.41 cents per kWh. On 10,000 kWh of electricity production that's a savings of $141 the first year. And add Austin's $4,000 rebate as the cherry on top!