Utility Incentives

Area municipal utilities[1] and cooperatives may offer financial incentives to qualifying customers. These economic development riders and business incentive plans are designed to encourage industrial and commercial development by providing additional start-up cost savings to large users of natural gas and electricity. Utility cost reductions can also be a benefit of Enterprise Zone projects.

Austin Energy, serving customers in the City of Austin, offers customers the option to select a portion of their electricity from clean, renewable or "green" energy sources through its GreenChoice program. GreenChoice customers receive a fixed GreenChoice charge over a long term that replaces the variable fuel charge tied to fuels that are subject to market volatility, like natural gas. Green building design consulting and commercial energy management services are provided free to customers. Companies may also qualify for conservation rebates or low-interest loans.

Austin Energy offers businesses 20+ different rebates and incentives addressing lighting, heating and cooling, chiller, building envelope, etc. Building owners, design professionals, contractors, or other agents are eligible to apply for Austin Energy new construction rebates on behalf of their customers. These projects can be building shells, complete build-outs, finish-outs, additions, and major building remodeling projects. This rebate may help reduce the cost of installing energy-efficient technologies. Businesses can also receive incentives to help reduce the cost of installing a solar energy system. Depending on the size of the system, business may be eligible to receive either a one-time check or monthly bill credits.

Bluebonnet Electric Cooperative, serving eastern/southeastern parts of the Austin metro, offers a Green Energy Rate that purchases energy for the user from renewable wind power generated in West Texas.

Pedernales Electric Cooperative (PEC), serving much of the western part of the Austin metro, partners with communities to offer discounted rates to new commercial and industrial businesses purchasing more than 2,200,000 kilowatt hours of power annually. PEC also offers rebate incentives to help businesses install energy-efficient lighting technologies and HVAC equipment and a renewable energy rider rate allowing customers to power their business with 100% renewable energy.

Oncor, serving the deregulated areas of the Austin metro, offers a number of incentive programs, including savings for solar energy, insulation, ENERGY STAR® appliances, LED lighting and solar power.

PACE programs

Property Assessed Clean Energy (TX-PACE) is a proven financial tool that incentivizes Texas’ property owners to upgrade facility infrastructure with little or no capital outlay. Approved by State legislation and established by local governments, TX-PACE programs enable owners to lower their operating costs and use the savings to pay for eligible water conservation, energy efficiency, resiliency, and distributed generation projects. Owners gain access to private, affordable, long-term (typically 10-20 years) financing that is not available through traditional funding avenues.

Bastrop, Caldwell, Hays, Travis and Williamson Counties’ PACE programs enable owners of non-profit, commercial, and industrial properties to obtain low-cost, long-term financing for water and energy efficiency improvements and solar generation retrofits. Private sector lenders finance qualified improvements and property owners voluntarily agree to contractual assessments imposed on the property. PACE improvements generate positive cash flow with no out-of-pocket cost to the property owner. If the property is sold before the full amount is repaid, the repayment obligation automatically transfers to the next owner. PACE assessments complement Austin Energy incentive programs.


  1. In addition to Austin Energy, area municipal electric utilities include Bastrop Power & Light, the Lockhart Electric Utility, Georgetown Utility Systems, and the San Marcos Electric Utility.