Austin Energy in talks to expand community solar program

As residents bemoan scorching temperatures, Austin Energy is looking to leverage the sunny weather’s benefits, with plans to ramp up the utility’s community solar program over the coming year.

Customer Renewable Solutions Manager Tim Harvey stopped by last week’s Electric Utility Commission meeting for an update on the program, which currently serves a total of 270 market-rate and 200 low-income customers. The pilot’s size has thus far required subsidies from nonparticipating customers to stay afloat, though Harvey said this will change as more projects come online.

Since 2015, Austin Energy has joined utilities across the nation in piloting community-funded solar projects, allowing customers to opt into the local renewables market without upfront investments in personal equipment. The program currently consists of three projects: a ground-mounted array at La Loma, a covered parking array at Austin-Bergstrom International Airport and a smaller rooftop array at the Palmer Events Center. The projects generate 2.6 megawatts, 1.5 megawatts and 185 kilowatts of energy, respectively.

Customers who participate in the program forgo paying the standard power supply adjustment fee, and they are instead billed a community solar adjustment fee that is locked in place for 15 years. While the cost to market-rate customers was initially a bit higher than the standard bill, recent increases to the power supply adjustment have meant participants now save a tenth of a cent per kilowatt hour, a number that is expected to increase over time.

Half of the program’s capacity is also dedicated to those enrolled in Austin Energy’s Customer Assistance Program for low-income residents, who save 1.6 cents per kilowatt hour for participating in the program.

To scale up the program, Harvey said the utility is conducting stakeholder meetings to “take the temperature” of the market and formulate its pricing strategy. But beyond negotiating with interested parties, Austin Energy will also have to clear significant internal hurdles, including updating its interconnection policies and processes, configuring new meter tracking and accounting mechanisms, and reworking its existing application processing tools.

“There are many buildings out there owned and managed by real estate investment trusts, where the tenants are paying the electric bills, so it’s unlikely for them to initiate a solar project on a building they don’t own, and it’s unlikely for a building owner to initiate a solar project where they don’t receive benefits,” Harvey said. “By putting the interconnection on the utility side of the meter, it allows us to provide those benefits of the energy that we’re paying for directly to the third-party owner of that system. This would enable a whole new market sector that’s previously unpenetrated, like strip malls and business complexes.”

Harvey said customers can expect to see developments as early as next year, though there is still no definitive timeline. In the meantime, readers can learn more about Austin Energy’s community solar program at the utility’s website.

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