Item 4- Solar Standard Offer Briefing — original pdf

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Commercial Solar Standard Offer May 2026 © Austin Energy Tim Harvey Director, Customer Renewable Solutions Agenda Commercial Solar Standard Offer Program Overview Rate Adjustment Guaranteed Minimum Price Incentive Questions 2 Commercial Solar Standard Offer Program How it Works: • Commercial Property Owners host solar arrays and earn monthly rental income. • Third-party solar developers rent roofs to build and operate solar projects at commercial properties. • Austin Energy is the off-taker for the project through a varying rate-based tariff. There are no contract terms. 3 Commercial Solar Standard Offer Solution Market needs and utility goals are served by this innovative program • Solves split incentive market blocker • Enables large projects to achieve utility MW solar goals • Scalable and sustainable rate to pass through value to investors • Tariff-based solution as an alternative to procurement through request for proposal process • Adds capacity to serve residential customers through community solar subscription program 4 Commercial Solar Standard Offer Program: By the Numbers 28 # of Applications 16 Total MW-ac 17 # of Projects Encumbered 13 Total MW-ac Encumbered 1.1 Total MW-ac Installed Intake Process Overview Feasibility Study (systems >500 kW-ac) Apply to program through the Energy Efficiency Collaboration Platform (EECP) Receive Distributed Generation Address (DG Unit) Apply for Interconnection Study (if needed) Receive approval to install Pull permits for new service and auxiliary power 5 Solar Standard Offer Payment Rate Current Program rates at program launch were based on three- year average avoided costs: FY21-FY23. • <1 MW = $.1124/kWh • >1 MW = $.0841/kWh Adjusted 2026 program rates adjustment is based on five-year average avoided costs: FY21-FY25. • <1 MW = $.0958/kWh • >1 MW = $.0691/kWh Solar Standard Offer rates are adjusted every three years, based on the previous five- year average avoided costs. • Rates are subject to City Council approval during the annual budget review process. • The approved rate adjustment will be implemented in November 2026. • Next adjustment is in 2029. 6 Commercial Solar Standard Offer Guaranteed Minimum Price Austin Energy will ensure a rate floor to the Solar Standard Offer Payment Rate. The Guaranteed Minimum Price incentive is a limited approach offering a controlled way to influence adoption. Commercial Solar Standard Offer Guaranteed Minimum Price Incentive Term First 10 years of production Minimum Compensation • 11 cents/kWh (<1MW) • 8 cents/kWh (>1MW) Rate Escalator None Eligibility New Solar Standard Offer Program installations, not yet installed Tier Capacity 30 MW 7 Questions or Comments? SolarStandardOffer@ AustinEnergy.Com ©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.