Austin Energy - Solar Water Heating Rebate

February 22, 2019


Austin Energy offers its residential, commercial, and municipal customers either an up-front rebate 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.

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: Texas
Incentive Type: Rebate Program
Web Site:
Administrator: Austin Energy
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
Incentive Amount: Existing Homes: $2,000
New Homes: $1,500
Commercial: Custom
Maximum Incentive: Rebate: $2,000 Loan: $10,000 for duplex; $5,000 for single family
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; Minimum size: 80 gallons
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
Ownership of Renewable Energy Credits: Austin Energy


This program has 1 incentives
Technologies: Solar Water Heat, Renewable Energy
Sectors: Residential
Parameters: The incentive has a maximum of 1500.00 $/Unit, The incentive has a minimum of $2000.00


Name: Conservation Information Center - Solar Rebates
Organization: Austin Energy
Address: 721 Barton Springs Road
Austin TX 78704
Phone: (512) 482-5346

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.