Sunprint
The short answer
For an Austin Energy home, solar savings are close to a straight line: each kWh the panels make takes 12.89 cents off your electric charges. The average Austin Energy home paid about $105 a month in 2024. At a $100 average bill, a system covering 75% to 95% of the home's use earns roughly $780 to $990 a year at today's credit; at $150, roughly $1,250 to $1,580. The $4,000 rebate comes off the price on top of that.
How the Value of Solar works
Austin Energy runs two meters' worth of math on a solar home. On one side, it charges you for all the electricity your home uses, at its normal residential rates, whether that power came from your roof or the grid. On the other, it meters everything your panels produce and credits 100% of it at the Value of Solar rate, currently 12.89 cents per kWh.
In Austin it doesn't matter when you use your power. A kWh your panels make earns the same 12.89 cents either way.
- Credits roll over. If the credit is bigger than your electric charges, the rest carries to the next month. It can't be moved to another account.
- Electric charges only. The credit doesn't pay the water, trash or other city services on your City of Austin Utilities bill.
- Size to your use. Austin Energy recommends a system sized to meet your yearly use.
The credit against what you pay per kWh
Austin Energy's residential prices rise in tiers as your monthly use climbs. Adding the energy charge to the per-kWh adders on every bill (power supply, community benefit and regulatory charges) gives the all-in price of each extra kWh in each tier, inside the city:
Value of Solar credit: 12.89¢ for every kWh your panels make
Cents per kWh, Austin Energy residential rates inside the city of Austin, 2026: tiered energy charge plus Power Supply Adjustment (3.912¢), Community Benefit Charges (1.097¢) and Regulatory Charge (1.799¢). Excludes the $17.35 monthly customer charge.
The Value of Solar sits between the second and third tiers. In a hot month, when your use runs past 900 kWh, the last kWh you buy costs more than the credit a solar kWh earns. In mild months the credit is worth a bit more than the power you buy. Over a year it evens out to a credit close to the average price you pay, and you never have to think about timing.
The $4,000 rebate
Austin Energy raised its home solar rebate to $4,000 for eligible projects in 2026. To qualify you need an Austin Energy residential account, and the system must be new, at least 3 kW DC, mostly free of shade and installed at that account's address. The order of steps matters:
- Step 1Take the quizAustin Energy's Solar Rebate Quiz gives you a rebate reference number.
- Step 2Pick a participating contractorOnly systems installed by Austin Energy's participating contractors get the rebate.
- Step 3Wait for the letterThe contractor applies with your number. Installation can't start until the Solar Rebate Confirmation Letter arrives.
- Step 4Install and inspectAfter the final inspection, Austin Energy installs a solar meter and gives permission to operate.
- Step 5Check in the mailAfter a quality review, the rebate check is mailed. Austin Energy says to allow 7 to 10 business days.
The step that's easy to miss is the third one: a system installed before the confirmation letter comes back doesn't qualify. Austin Energy also needs two signed forms, its Residential Interconnection Agreement (required for every solar home, rebate or not) and the Customer Agreement Form for rebated systems.
What a monthly Austin Energy bill needs
Here's what our calculator works out for an average month at each bill size, using Austin Energy's 2026 rates, NREL's sun data for Austin and the 12.89-cent credit. The rebate isn't counted.
| Average monthly bill | Yearly use (kWh) | System to cover 75% to 95% | Yearly credit |
|---|---|---|---|
| $100 | 8,100 | 4.3 to 5.4 kW | $780 to $990 |
| $150 | 12,900 | 6.8 to 8.7 kW | $1,250 to $1,580 |
| $200 | 17,800 | 9.4 to 11.9 kW | $1,720 to $2,180 |
| $250 | 22,700 | 12.0 to 15.2 kW | $2,190 to $2,780 |
| $300 | 27,600 | 14.6 to 18.5 kW | $2,670 to $3,380 |
Yearly use backs out the $17.35 customer charge and divides by an average of 12.3¢ per kWh at 1,000 kWh. Systems produce 1,417 kWh per kW a year (PVWatts for a south-facing roof in Austin, less 5%). Savings value every kWh produced at 12.89¢.
What Austin Energy charges
Inside the city of Austin, a residential bill has a $17.35 customer charge, a tiered energy charge, and per-kWh charges for power supply, community benefits and regulatory costs. At 1,000 kWh a month those add up to about 14¢ per kWh including the customer charge. The average Austin Energy home used 834 kWh a month in 2024 and paid $104.85 (federal EIA data), one of the lowest averages in Texas.
Over the five years to 2024, Austin Energy's average residential price rose about 3.0% a year, from 10.8¢ to 12.6¢ per kWh, per EIA filings. Customers outside the city limits are on a separate rate schedule, so check which one your bill shows.
Leases and power purchase agreements
Austin Energy says plainly that third-party solar power purchase agreements, where a company owns the panels and sells you the power, "are not allowed in the Austin Energy service territory." Its rebate page is written for homeowners who own their panels. If an offer involves someone else owning the system on your roof, ask Austin Energy whether it's allowed before you sign.
Property tax
Texas exempts the value solar adds to a home from property tax. Austin-area homeowners file Form 50-123 with their county appraisal district between January 1 and April 30; our property tax exemption guide walks through it.
Your estimate in three steps
- Enter your billYour ZIP code, your utility and last month's bill.
- See your estimateA yearly savings range based on your utility's rates and the sun where you live.
- Choose what's nextAsk for a quote call if you want real pricing, or just keep the number.
See what solar could save you
It takes about a minute. You don't need a site visit, a commitment or a sales call to see your number.
Common questions
Does Austin Energy have net metering?
No. Austin Energy uses a Value of Solar rate instead. It credits every kWh your panels produce at 12.89 cents and bills all the power your home uses at its normal residential rates. Unused credit carries over to the next month.
What is Austin Energy's Value of Solar rate in 2026?
12.89 cents per kWh for residential systems, according to Austin Energy's Value of Solar page as of October 2026. The credit applies to the electric part of your City of Austin Utilities bill.
How much is the Austin Energy solar rebate?
$4,000 for an eligible home system in 2026. The system must be new, at least 3 kW DC, mostly unshaded and installed by a participating contractor, and you need a Solar Rebate Confirmation Letter before installation starts.
Can I get the rebate if my panels are already installed?
No. Austin Energy requires a new system that isn't installed before the rebate is submitted, and the confirmation letter has to arrive before installation begins.
Does the Value of Solar credit pay my water bill?
No. Austin Energy says the solar credit applies only to your electric charges, not water, solid waste or other city services on the same bill.
Are solar leases or PPAs allowed with Austin Energy?
Austin Energy says third-party solar power purchase agreements are not allowed in its service territory, and its rebate is aimed at homeowners who own their panels.
Related guides
- Texas solar incentives in 2026
- Texas solar buyback plans and net metering
- Solar for Pedernales (PEC) customers
- Solar batteries and Texas outages
- Is solar worth it in Texas?
Rates and the Value of Solar are reset by Austin Energy and the Austin City Council; check Austin Energy's pages for the current figures. Sources: Austin Energy: Value of Solar rate · Austin Energy: solar for your home · Austin Energy: residential rates · Austin Energy: increased rebate (Aug 2026) · EIA Form 861 · PVWatts v8, National Laboratory of the Rockies (formerly NREL). Reviewed October 2026.
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