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TOU Rate Structure

Solar ROI for Austin Energy Customers

Austin Energy charges an average of $11.8¢/kWh. Peak rates reach $16.8¢/kWh with off-peak at $7.8¢/kWh, creating strong battery arbitrage value. A 7 kW solar system produces a $6,937 NPV over 25 years.

$12,740
Net System Cost
$6,937
25-Year NPV
10 years
Payback Period
$0.126/kWh
Solar LCOE

Austin Energy Rate Structure

ParameterRate
Average residential rate$11.8¢/kWh
Peak rate$16.8¢/kWh
Off-peak rate$7.8¢/kWh
Peak/off-peak spread$9.0¢/kWh
Rate structureTOU
Export credit policyValue-of-solar tariff at ~$0.097/kWh

Solar System Economics

A 7 kW solar system for a Austin Energy customer costs $18,200 before incentives. The 30% federal ITC saves $5,460. The net out-of-pocket cost is $12,740.

At Austin Energy's $11.8¢/kWh average rate, the system saves $1,239 in year one, producing 10,500 kWh. The solar LCOE of $0.126/kWh is -7% below Austin Energy's current rate.

Battery Storage for Austin Energy Customers

$8,400
Battery Net Cost
$1
Daily Arbitrage
$299
Annual Arbitrage
-$6,960
25-Year Battery NPV

Austin Energy's TOU spread generates $299/year in arbitrage value. The 25-year battery NPV of -$6,960 suggests batteries are marginal on economics alone. Backup power value and grid services programs may improve the case.

FAQ: Solar for Austin Energy Customers

How much can Austin Energy customers save with solar?
A typical 7 kW solar system saves Austin Energy customers approximately $1,239/year in electricity costs. Over 25 years, the NPV of savings after system costs is $6,937.
What is Austin Energy's rate structure?
Austin Energy uses a time-of-use (TOU) rate structure with peak rates of $16.8¢/kWh and off-peak rates of $7.8¢/kWh. The $9.0¢/kWh peak/off-peak spread creates significant value for battery storage — TOU arbitrage alone is worth $299/year.
Does Austin Energy offer net metering?
Value-of-solar tariff at ~$0.097/kWh
Should Austin Energy customers add battery storage?
Battery storage for Austin Energy customers has a 25-year NPV of -$6,960. The economics are marginal based on TOU savings alone, but backup power value and future grid services programs may change the equation.

Other Utilities in Texas

Oncor / ERCOT Retail Providers
$13.8¢/kWh · FLAT
›
CPS Energy San Antonio
$12.2¢/kWh · FLAT
›

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