Austin Energy: Value of Solar Community Engagement

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Austin Energy is looking to change the Value of Solar rate.

Austin Energy aims to fairly credit solar customers for the energy that they produce at their homes and businesses. The utility recently completed a study that identified that some components historically used to calculate the Value of Solar (VoS) rate are based on assumptions that no longer align with Austin Energy’s underlying costs.

To fix this gap, Austin Energy is proposing a new approach that allows for greater transparency and flexibility. Key value of solar rate review drivers include:

  • More accurately allocating costs in accordance with standard utility rate making practices.
  • Removing values that are not related to Avoided Costs from the Power Supply Adjustment (PSA).
  • Recovering Societal Benefit values through the Customer Benefit Charge (CBC).

Proposed changes include:

  • Update the societal benefits calculation to reflect the positive impacts of solar generation in Texas.
  • Change the funding source for societal benefits from Power Supply Adjustment to Community Benefits Charge to clarify how customer charges support clean energy.
  • Update the avoided cost methodology to use the embedded costs approach to increase accuracy and better align with standard rate-making practices.
  • Residential and Commercial Non-Demand
    • Increase Value of Solar credit from 9.70 cents to 9.91 cents per kWh
  • Commercial Demand Solar capacity < 1,000 kW-ac
    • Increase Value of Solar credit from 6.70 cents to 9.91 cents per kWh
  • Commercial Demand Solar capacity ≥ 1,000 kW-ac
    • Increase Value of Solar credit from 4.70 cents to 7.24 cents per kWh

The Value of Solar Report can be viewed at the following URL: https://www.austintexas.gov/edims/document.cfm?id=382682

The Value of Solar rate review process is open to all Austin Energy customers.

Visit austinenergy.com/go/rates to learn more.

For questions about the base rate review process, please email rates2022@austinenegy.com.

English | Español | Tiếng Việt | 中文 (简体) | 한국어 | العربية


Austin Energy is looking to change the Value of Solar rate.

Austin Energy aims to fairly credit solar customers for the energy that they produce at their homes and businesses. The utility recently completed a study that identified that some components historically used to calculate the Value of Solar (VoS) rate are based on assumptions that no longer align with Austin Energy’s underlying costs.

To fix this gap, Austin Energy is proposing a new approach that allows for greater transparency and flexibility. Key value of solar rate review drivers include:

  • More accurately allocating costs in accordance with standard utility rate making practices.
  • Removing values that are not related to Avoided Costs from the Power Supply Adjustment (PSA).
  • Recovering Societal Benefit values through the Customer Benefit Charge (CBC).

Proposed changes include:

  • Update the societal benefits calculation to reflect the positive impacts of solar generation in Texas.
  • Change the funding source for societal benefits from Power Supply Adjustment to Community Benefits Charge to clarify how customer charges support clean energy.
  • Update the avoided cost methodology to use the embedded costs approach to increase accuracy and better align with standard rate-making practices.
  • Residential and Commercial Non-Demand
    • Increase Value of Solar credit from 9.70 cents to 9.91 cents per kWh
  • Commercial Demand Solar capacity < 1,000 kW-ac
    • Increase Value of Solar credit from 6.70 cents to 9.91 cents per kWh
  • Commercial Demand Solar capacity ≥ 1,000 kW-ac
    • Increase Value of Solar credit from 4.70 cents to 7.24 cents per kWh

The Value of Solar Report can be viewed at the following URL: https://www.austintexas.gov/edims/document.cfm?id=382682

The Value of Solar rate review process is open to all Austin Energy customers.

Visit austinenergy.com/go/rates to learn more.

For questions about the base rate review process, please email rates2022@austinenegy.com.