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*IMPORTANT UPDATE* 
Effective June 26th at 3pm – Austin Energy reduces the commercial solar PBI to $0.08 per kWh generated

Going solar isn’t as expensive as it’s cracked up to be. Local and federal tax incentives cover anywhere from 30% to 60% of the system cost depending on where you live. Here in Austin, Meridian Solar’s headquarters, the local incentive offered by Austin Energy makes installing solar on your business an easy decision.

Commercial customers in the Austin Energy (AE) service territory are eligible to receive AE’s Performance Based Incentive (PBI) for installations up to 200 kWAC. The current PBI rate is $0.09 per kWh generated for ten years per customer, per building complex. Therefore, if a 200 kWAC solar system generates 31,000 kWh per month on average, the customer will be credited $2,790 on their monthly bill. If the PBI credit exceeds the monthly bill amount, the excess amount will be credited to next months’ bill.

It is also important to keep in mind that with respect to historical data, the PBI is expected to decrease before the end of 2015:

AEPBIReductions

In addition to the Performance Based Incentive, net metering is also available for commercial solar systems rated up to 20 kWAC. Net metering, as defined by Austin Energy, is when your solar system produces more energy than you consume and the excess generation flows back into the electric grid. The difference, or net, will result in a credit on the customer’s bill at a rate of net kWh, or electricity fed back into the grid, multiplied by the current fuel charge.

While the AE PBI and net metering policy are readily available for eligible customers, there is also a 30% solar Investment Tax Credit for for-profit entities going solar. This federal incentive, available through December 31, 2016, is a dollar-for-dollar reduction in the income taxes that the organization going solar has to pay the federal government. After 2016, this commercial credit it expected to drop significantly.

In summary, the time is right to go solar now. With the available local and federal incentives expected to decrease or go away all-together, there is not a better time to take advantage of the money available and OWN YOUR POWER.

AECommPBI

Interested? Have a question? Want to better understand solar and its financial or sustainable impact on your business? Give us a call at 512.410.3878