Item 11- Staff Briefing Austin Energy Solar Portfolio — original pdf

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Austin Energy Solar Programs Tim Harvey Director, Customer Renewable Solutions October 20, 2025 © Austin Energy Item 11Customer Renewable Solutions Industry Development Solar programs were created to make a positive impact on the local economy while spurring solar industry development. Customer Programs Providing customers with multiple options to power their homes and businesses sustainably. Sustainable Power Generation Programs leverage customer interest in renewables to invest in sustainable power generation. More Than 20 years of Solar Programs GreenChoice Solar Incentives (Residential and Commercial) Commercial Solar Performance-Based Incentive Program Value of Solar Rate (Residential) Solar Pioneers Solar Explorers Solar in Schools Municipal Solar 1998 2000 2002 2004 2006 2010 2012 2014 2016 2018 2020 2022 2024 2026 Solar Education Palmer Events Center Community Solar Shared Solar (Pilot) Shared Solar (Launch) GreenChoice Wind + Solar Value of Solar (Commercial) La Loma Community Solar Green-e Certified Community Solar Commercial Solar Capacity-Based Incentive Program Austin-Bergstrom International Airport Community Solar Commercial Solar Standard Offer 189 MW Local Solar $100M Incentives 72 Contractors 14,000 Rebated Customers Austin Energy Supporting the Solar Industry 1 4 Standards Developing local codes and standards to interconnect solar and batteries 2 Capabilities Reviewing new technology and capabilities 3 Interconnection Conducting solar and battery inspections, and streamlining the interconnection processes Training Monthly training for local contractors 5 Incentives Incentives to encourage customer adoption 6 Sustainability Supporting provisions for end-of-life recycling Codes, Standards, Emerging Technology, Training Emerging Tech & Grid Capabilities • Microgrids, resiliency hubs • Export limiting, meter collars • Virtual Power Plants Local Codes and Standards • Developing and promoting best-standards and practices • Adapting codes for evolving technology • Clarifying gray areas of code • Contractor Training Inspections and Processes • Compliance program deters bad contractors and support consumer protection • Continual improvement and streamlining of permitting, inspection, and rebate processes Integrating customer-owned equipment into utility-owned metering Top Issues: New Construction Inspections Source: SolarGrade PV Health Report by HelioVolta, 3rd Edition. Study: 1,000 US systems, May 2021-2025. Solar Inspections & Quality Few Safety Events Lack of safety events increases customer confidence and higher performance potential. In-Person Inspections Mitigate safety risks for customers, contractors, first responders and Austin Energy field crew. “Unplanned, unbudgeted corrective maintenance is six times more likely to occur in solar projects if workmanship errors are not remediated.” – Solarbuildingmag.com Austin Energy Programs Support Local Solar Industry Solar programs provided early support and have adapted to industry growth Rebated Projects vs. Austin Energy Incentives Solar Sales ($M) Rebate ($M) 40 35 30 25 20 15 10 5 0 4 0 0 2 5 0 0 2 6 0 0 2 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 1 1 0 2 2 1 0 2 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 4 Participating Contractors 72 • Residential Rebate began at $5/W, heavily incentivizing systems selling above $6.5/W. • As prices declined and solar system size increased, Austin Energy periodically reduced the rebate. • Participating contractors have grown from 4 in 2004 to 72 in 2025. Total Solar Sales (Rebated) $482M Total Rebated kW DC 137 MW Statistics do not include unrebated solar installations Solar Panel & Battery Recycling Recycling Options • Free residential solar panel recycling up to 100 pounds • 30¢ per pound thereafter Recent Updates • Austin Resource Recovery’s battery and solar panel website: austintexas.gov/batteries#solar • Austin Energy installs stickers with recycling instructions at final inspection Developing End-of-Life Process/Policy Currently exploring additional options to facilitate solar panel and battery recycling Proving Customers with Green Power Programs Three types of programs to increase renewable energy access Incentives to Install Renewable Energy Subscriptions Community Solar Hosting Reducing upfront installation cost for customer-sited solar Offsetting customer consumption with third-party, pay-as-you-go, certified renewable energy Enabling customers to receive rental income for leasing roofs to Community Solar installations • Residential Rebate Program • Multifamily Capacity-Based Incentive Program • Commercial Capacity-Based Incentive Program • Commercial Performance- Based Incentive Program • Community Solar for Residential Customers • GreenChoice for Residential Customers • GreenChoice for Commercial Customers • Commercial Solar Standard Offer • Residential Solar Standard Offer (In development) Solar Rebate Program Customers Customers are installing larger systems at a lower cost per watt • • • Since 2004, system sizes have nearly tripled. Higher efficiency solar panels = more solar energy produced. In 2019, Austin Energy customers enjoyed some of the lowest installation costs in the nation at $3.30/W. Since 2019, prices have increased, though in 2025 the residential average is $3.27/W (without storage). Program Participants 13,874 Solar Incentives $ 105,411,785 12 10 8 6 4 2 0 350 300 250 200 150 100 50 0 Residential Project Size vs. Cost per Watt $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 4 0 0 2 5 0 0 2 6 0 0 2 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 1 1 0 2 2 1 0 2 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 Residential kW-dc (Avg) Residential Cost Per Watt (Avg) Commercial Project Size vs. Cost per Watt $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $- 0 1 0 2 1 1 0 2 2 1 0 2 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 Commercial kW-dc (Avg) Commercial Cost Per Watt (Avg) Solar Solutions for Homeowners Austin Energy offers education to help homeowners navigate the process of evaluating and installing solar along with an incentive to reduce the upfront costs of installing solar. Additionally, all solar systems receive monthly Value of Solar bill credits for the energy they produce. “Austin Energy provided in depth explanation of what to expect. The learning modules explained options clearly. System parts and functions were explained in easy-to-understand terms. We are glad to see a real savings in our energy bill.” – Austin Energy solar customer Solar Solutions for Multifamily Austin Energy offers a variety of programs for Multifamily Housing. • The Capacity-Based Incentive (CBI) program allows property owners to share the benefits of solar with residentially metered tenants. • Austin Energy offers rebates to property owners. • Value of Solar bill credits lower tenant utility bills. • Solar Solutions for Business serves commercial meters at multifamily properties. • Property owners can host Solar Standard Offer arrays. Solar Solutions for Business Austin Energy offers two solar incentive options for business and non-profit customers to help reduce the cost of solar installation. Commercial customers can apply for either: • The Performance-Based Incentive (PBI), which provides a five-year bill credit on monthly utility bills. • The Capacity-Based Incentive (CBI), which offers a one-time upfront incentive after installation. Additionally, solar customers receive monthly Value of Solar bill credits for the energy they produce. GreenChoice Subscription Programs GreenChoice lets Austin Energy customers harness Texas wind power at a smart, convenient price. Austin Energy is looking to add utility scale solar to the GreenChoice program in 2026. Commercial GreenChoice Businesses can choose from three plans: BusinessCents, Energizer or Patron. Energy usage billed at GreenChoice rates may claim zero emissions. Residential GreenChoice GreenChoice residential customers pay a premium of about $7.50 a month to choose renewable Texas wind energy. Customers must have an active Austin Energy account in good standing to enroll. Community Solar Subscription Program Provides customers with the opportunity to access to renewable energy. Austin Energy's Community Solar program gives residential customers access to solar energy — no installation required. This is a great solution for renters or buildings not suited for solar. Provides moderate- and limited-income customers preferential access to community solar programs. Customers enrolled in the Customer Assistance Program (CAP) are subscribed at a reduced rate. Austin Energy invests in local solar projects to match 100% of subscribers' electricity needs. Maintains a waiting list to maximize participation. Community Solar is fully subscribed as of 2018. Austin Energy anticipates adding capacity to the program. Customers can check availability and get on the waiting list to participate. Hosting Community Solar through the Solar Standard Offer Program The Solar Standard Offer Program is Austin Energy’s innovative initiative to increase local solar adoption on commercial properties. This program allows property owners to lease roof or parking space to solar developers, creating new revenue streams without upfront capital investments. The energy produced supports Austin Energy’s Community Solar program and contributes to Austin’s carbon-neutrality goals. Customer Outreach La Loma Solar Tours Solar in Schools Community Events Austin Energy Utility-Scale Generation Capacity FY2024 72% Carbon Free Comparing Carbon Free Generation AUSTIN ENERGY 72% ERCOT 43% USA 42% Austin Energy Generation Renewable Generation Capacity FY2025 Solar Wind Utility Scale 966 MW 1,796 MW Customer-Owned 158 MW - Customer programs are in addition to utility-operated renewable energy Value of Solar VoS • Replaced Net Energy Metering in 2012 • Eliminated Net Energy Metering caps • Customers are charged at standard rates for total consumption • Provides customers credit for all production • Based on Austin Energy’s avoided costs • Adds value for Societal Benefits Value of Solar Structure Components Description ERCOT Energy Savings Ancillary Services Savings Transmission Savings Societal Benefits The weighted average of the price of energy in the ERCOT market at the time that solar energy is produced The weighted average of the cost to make sure that the right number and type of power plants are running (to prevent an outage) Calculates savings based on the average generation at peak times, the sum of wholesale transmission service charges, and the total solar generation References the federal social cost of carbon report based on integrated assessment models and Texas-specific carbon per kWh A V O I D E D C O S T S Austin Energy Local Solar Progress to Goals MWs 400 350 300 250 200 150 100 50 0 Installed: 189 MW +18 MW FY25 +16 MW FY24 155 MW as of FY23 16 MW to Goal Goal: 205 MW 189 MW as of FY25 Goal: 405 MW 216 MW to Goal 189 MW as of FYTD 2025 Reaching the 2035 Local Solar Goal • Continue adding solar capacity yearly • Continue culture of innovation to expand access to solar and benefits of local solar generation • Improve customer interconnection experience Solar Capacity FYTD 2025 2027 Local Solar Goal 2035 Local Solar Goal Solar Installations Across Austin ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.