Austin Energy - Solar Water Heating Rebate (Texas)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Texas

Name Austin Energy - Solar Water Heating Rebate
Incentive Type Utility Rebate Program
Applicable Sector Commercial, Fed. Government, Institutional, Local Government, Multi-Family Residential, Nonprofit, Residential, Schools, State Government, Must be an Austin Energy customer
Eligible Technologies Solar Water Heat
Active Incentive Yes
Implementing Sector Utility
Energy Category Renewable Energy Incentive Programs
Amount Existing Homes: $2,000

New Homes: $1,500
Commercial: Custom

Eligible System Size System should be sized to accommodate a minimum of 4 people; no maximum specified
Equipment Requirements Must use new, SRCC certified equipment and be designed for frost protection and scale elimination or remediation;

Minimum 5-year warranty on major components;
System must pre-heat water for a permanently installed electric water heater

Installation Requirements Must be installed by a licensed contractor;

Equipment must meet all applicable Austin city codes and adhere to the city building permit process

Maximum Incentive $2,000
Ownership of Renewable Energy Credits Austin Energy

Program Budget $3 M (FY2012 for all solar programs)

Program Administrator Austin Energy

References DSIRE[1]


Austin Energy offers its residential, commercial, and municipal customers up front rebates or a low interest loan for the purchase and installation of solar hot water heaters. Because the program is in part designed to help Austin Energy reduce peak electricity demand, only systems that preheat water for a permanently installed electric hot water heater are eligible to receive the incentive. Rebate levels vary by customer class.


  • Residential (new construction): $1,500
  • Residential (existing homes): $2,000 or low interest loan (see below)
  • Commercial: Custom, determined on a case-by-case basis
Loans option details (existing homes) 
  • Home improvement loans: 0% interest rate over 3, 5, 7, or 10 year term; $1,500 minimum
  • Personal loans: 2% interest rate over 3 or 5 year term; $500 minimum
  • Maximum loan of $5,000 for single family or $10,000 for duplexes
  • Additional 2% interest rate (added to base rate) for credit scores of 639 and below

All systems must be new, SRCC certified, and sized to accommodate the needs of at least 4 people. Systems must also be designed for frost protection, scale elimination or remediation, and have a 5-year warranty on all major components. The use of existing tanks will be allowed on a case-by-case basis. All systems must be installed by a licensed, program approved contractor, and comply with all applicable city codes and permitting requirements. Participants must sign an agreement stating their intention to maintain the system in proper working order for at least 5 years and allow Austin Energy to inspect the system. Failure to maintain the system may result in repayment of a prorated portion of the rebate. Participants must also sign a Renewable Energy Credit (REC) Assignment Form handing over all RECs produced by the system to Austin Energy.

The FY2011 budget for solar water heater program is not separated out of the general solar rebate budget, which is $4,000,000. The FY2012 budget for all solar programs is $3,000,000. The budget year runs October - September. The FY2013 budget for all solar programs had not been approved at the time this summary was written. Check with Austin Energy directly regarding available funding amounts.

Incentive Contact

Contact Name Conservation Information Center - Solar Rebates
Department Austin Energy
Division Solar Rebate Program
Address 721 Barton Springs Road
Place Austin, Texas
Zip/Postal Code 78704
Phone (512) 482-5346
Fax (512) 482-5409

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"

Rebates Grants Solar Water Heating Incentives

SWH Residential Max $ $2,000
SWH Commercial Max $ $2,000
SWH Non-profit Max $ $2,000

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1.  "Database of State Incentives for Renewables and Efficiency (DSIRE)"