Austin Energy · Texas

How Austin Energy credits home solar

What happens to the solar power your home sends to the grid, the size limits, and the steps to connect, checked against Austin Energy's own tariffs and the state rules.

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The rules

What happens to the solar power you send to the grid

Austin Energy, a department of the City of Austin, serves a 437 square mile area that includes Austin and portions of Travis and Williamson counties.

Value of Solar (VoS) Rate

How Austin Energy credits exports

  • Austin Energy, a community owned, not for profit enterprise of the City of Austin, credits home solar through its Value of Solar Rider rather than net metering.
  • A separate solar meter measures everything the system produces, and each month the customer receives a Value of Solar credit for 100 percent of that production, whether the energy is used in the home or sent to the grid.
  • The home is billed at standard residential rates for all the electricity it uses, counting both solar energy consumed on site and energy delivered by Austin Energy, so the credit depends on production rather than on the home's usage.
  • Credits apply only to electric charges, not to water, solid waste or other city services, and credits beyond a month's electric charges carry forward with no expiration date, but they have no cash value, cannot be transferred, and are forfeited when service ends.
  • Austin Energy says all eligible solar customers receive the current Value of Solar rate for their system size, and the rate is recalculated every three years as the average of the previous five annual assessments and approved through the Austin City Council budget process.

Recent changes

The fiscal year 2027 City of Austin electric tariff, approved by the Austin City Council and effective October 1, 2026, updates the Value of Solar rates that Austin Energy's Value of Solar page lists as effective since March 1, 2023. The current Residential Interconnection Agreement, effective April 22, 2026, includes a leasing attestation and disclosure form that must be completed when the customer does not own the system.

Before you connect

Limits, and the steps to get connected

Limits and eligibility

  • The Value of Solar Rider applies to accounts with an on site solar system of less than 10,000 kW AC, measured at the inverter output and connected behind the meter to Austin Energy's distribution system, excluding transmission voltage and lighting accounts.
  • Systems under 25 kW AC that are not on the downtown network use a streamlined process, while systems of 25 kW AC or more, counting solar and battery output, get an Austin Energy planning and transformer capacity review, and an application is denied if all generation on the transformer would exceed 90 percent of its rating unless the system is downsized or the transformer is upgraded at the customer's expense.
  • Third party power purchase agreements are not allowed for residential customers, and a leased system is accepted only if the lease payment covers the equipment alone and does not depend on the energy produced.
  • Austin Energy recommends sizing a system to meet the home's annual energy use, warns that a larger system may produce credits that cannot be used or cashed out, and may require export limiting case by case when a system is larger than the grid equipment can handle.

How a home gets connected

  1. The contractor applies for a Residential Auxiliary Power Electrical Permit in the City of Austin's Austin Build + Connect portal and uploads a Distributed Generation Planning Application, a wiring diagram and a Residential Interconnection Agreement signed by the customer.
  2. Austin Development Services reviews the application, Austin Energy staff review and approve the interconnection agreement before the permit is activated, and systems of 25 kW AC or more or with batteries receive added Austin Energy reviews.
  3. Installation may begin once the permit is Active, and ground mounted systems or solar shingles inside Austin city limits also need residential plan review and a building permit.
  4. After installation, and after any related permits are final, the contractor requests a final solar inspection in the portal, and Austin Energy must pass the system before it can be turned on.
  5. Austin Energy then installs a solar meter in addition to the existing revenue meter, typically within 5 to 10 business days of the passed inspection, and updates the permit to Final, at which point the customer has permission to operate.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. What that means in 2026.

Where we work

Cities we cover in Austin Energy's area

Each city page adds who issues permits there, with links to the official sources.

State rules

Questions

Common questions about Austin Energy and solar

Does Austin Energy offer net metering for home solar?

No. Austin Energy says every solar system automatically receives Value of Solar bill credits, which differ from net metering because the credit is based on how much energy the system produces, not on how much electricity the home uses. The home is billed at standard rates for all the electricity it uses, and the solar credit appears as its own line on the bill.

Do Austin Energy solar credits expire?

No. Austin Energy says excess solar credits roll over to the next month's electric charges and do not expire, but they have no cash value and end if the account closes. The tariff also makes the credits nonrefundable and nontransferable, and they cannot be applied to water, solid waste or other city services.

Is the Austin Energy Value of Solar rate changing?

Yes. The fiscal year 2027 electric tariff, approved by the Austin City Council and effective October 1, 2026, lists new Value of Solar rates, replacing the rate Austin Energy's website shows as effective since March 1, 2023. Austin Energy says the rate is recalculated every three years as the average of the previous five annual assessments, and all eligible solar customers receive the current rate for their system size.

Is there still a federal tax credit for home solar?

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Tariffs and programs change, so confirm current terms with Austin Energy before you decide.

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