Governmental Rebates

Residential

Austin Energy

Austin Energy Rebate Program: Austin Energy offers incentives to its residential customers to encourage the use energy efficient equipment. Rebates are available for qualified HVAC equipment and weatherization improvements. Customers may receive the Home Performance Bonus Rebate up to $650 when they install a new air conditioning unit or heat pump and perform the following weatherization measures listed, if needed:

  • Install additional attic insulation
  • Repair leaking AC ducts
  • Caulk around plumbing under sinks
  • Weather-strip doors
  • Install Low-E windows, solar screens, or awnings (to windows in direct sun)
  • Radiant barrier

To take advantage of the weatherization rebates, customers must first have an energy audit performed on their homes. Energy audits are not required for the HVAC rebates. Mobile homes or manufactured homes are eligible for rebates on new air conditioners only. Other energy efficiency improvements cannot be rebated for these dwellings due to construction code differences. Other restrictions apply.

For more information go to: Austin Energy or DSIRE


Austin Energy Residential Loan Program: Austin Energy offers loans to its residential customers to finance energy efficient improvements in their homes, such as heat pumps, air conditioners, caulking/weather-stripping, duct/air sealing, and building insulation.

For more information go to: Austin Energy or DSIRE


Austin Energy Solar Rebate Program: Austin Energy's Solar Rebate Program offers a $2.50 per watt incentive to eligible residential and commercial customers (including multi-family housing) who install qualifying solar energy systems on their homes or facilities. A standard residential solar energy system is 3,000 watts, which could result in a rebate of $7,500 from Austin Energy. Many residences have systems that are greater than 3,000 watts. The maximum incentive available to residential customers is the lesser of $50,000 or 80% of the invoiced cost per customer.

For more information go to: Austin Energy or DSIRE


Austin Energy Solar Thermal Rebate and Loan Program: Austin Energy offers its residential, commercial, and municipal customers up front rebates or a low interest loan for the purchase and installation of solar hot water heaters. Because the program is in part designed to help Austin Energy reduce peak electricity demand, only systems that preheat water for a permanently installed electric hot water heater are eligible to receive the incentive.

For more information go to: Austin Energy or DSIRE


Austin Energy Net Metering Program: Austin Energy offers net metering for renewable energy systems up to 20 kilowatts. The definition of renewable includes solar, wind, geothermal, hydroelectric, wave and tidal energy, biomass, and biomass-based waste products, including landfill gas. Systems must be used primarily to offset a portion or all of a customer's on-site electric load. Customers that generate more electricity than they consume during a monthly billing period will receive a credit for net excess generation at the appropriate avoided cost rate. The amount of the credit is calculated by multiplying the net kilowatt-hours (kWh) of electricity fed into the grid by the current fuel charge; or, if the customer participates in the utility's GreenChoice program, each kWh delivered by the customer to the utility's electric system in excess of the kWh delivered by the utility is multiplied by the appropriate Green Power Charge.

For more information go to: Austin Energy or DSIRE


Austin Energy GreenChoice Program: Energy offers customers the ability to participate in its GreenChoice program, the nation's most successful utility-sponsored green energy program. GreenChoice electricity comes from clean, renewable sources.

Two price options are available: customers opting for a 5-year term subscribe to a GreenChoice charge of 8.0 cents per kWh; those opting for a 10-year term subscribe to a charge of 9.5 cents per kWh. These charges replace Austin Energy's fuel charge of 3.65 cents per kWh. An average residential customer consuming about 1,000 kWh per month will pay about $43.50 per month more if opting for a 5-year subscription or $58.50 per month more if opting for a 10-year subscription.

For more information call (512) 972-7548 or go to: Austin Energy


Austin Energy Free Thermostat: Austin Energy offers customers a free programmable thermostat and free installation in return for their participation in Austin Energy’s Power Saver Program.

For more information go to: Austin Energy


Austin Energy Refrigerator Removal Cash Incentive: Austin Energy offers a cash incentive of $35 to $50 for your old 14-to-27 cubic feet refrigerator/freezer. They will even pick it up for free and dispose of it in an environmentally sound way.

For more information go to: Austin Energy


Austin Energy Free Home-Energy Improvements: Austin Energy offers free home-energy improvements to customers with low-to-moderate incomes. Improvements reduce energy costs and enhance comfort.

If needed, Austin Energy provides materials for and installation of:

  • Attic insulation
  • Minor duct repair and sealing
  • Caulking around plumbing penetrations
  • Weather stripping around doors
  • Solar screens

For more information go to: Austin Energy


Texas Gas Services

Texas Gas Service Rebate Program: Texas Gas Service offers an incentive for its residential customers within the Austin and Sunset Valley city limits to install new central furnaces, hydronic water heaters, high efficiency gas water heaters (tank and tankless), duct repair/sealing, attic insulation, and clothes washers. Residential customers must have the base gas service rate AUST I/S, SUNV I/S or ABIA I/S to be eligible. Incentives vary widely but are capped at $1,575.

Texas Gas Service also offers a program for their low-income customers. Incentives include the installation and/or replacement of space heaters, wall furnaces or central furnaces; the provision of free weatherization services; and installation of carbon monoxide and smoke detectors.

Texas Gas Service offers some of its rebates in conjunction with Austin Energy, so limitations on the number of rebates a person may receive might be limited.

For more information go to: Oneok or DSIRE


City of Austin

Toilet Replacement Program: If you receive water from the City of Austin or an eligible MUD, then you can receive up to three free Niagara Ecologic high-efficiency toilets or up to three elongated-bowl ADA-height toilets for $21.10 + tax per toilet. Or, if you choose to purchase your own qualifying high-efficiency toilet, you can receive a rebate of up to $200 per toilet for replacing pre-1996 toilets, up to $50 for replacing 1.6 gpf toilets, and up to $50 for installing a qualifying high-efficiency toilet in new construction.

If you receive a free toilet, you are eligible to receive $60 rebate per toilet installation so long as a licensed plumber installs the toilet. In the case that you choose to purchase your own toiler, you may receive a rebate for installation that makes up the difference between the $200 maximum rebate and the cost of the toilet. Toilets installed through the HET Upgrade Incentive ($50 rebate) are not eligible for installation rebates.

For more information go to: City of Austin


Rebate on High-Efficiency Clothes Washers: If you receive water from the City of Austin or an eligible MUD, then you may be able to receive a $150 rebate for the purchase of a qualifying high-efficiency clothes washer.

For more information go to: City of Austin


Pedernales Electric Cooperative

Pedernales Electric Cooperative Rebate Program: Pedernales Electric Cooperative offers rebates to its members who install energy efficient HVAC equipment.

For more information go to: Pedernales Electric Cooperative or DSIRE


State of Texas

State of Texas Property Tax Exemption for Solar and Wind Energy Devices: The Texas property tax code allows an exemption of the amount of the appraised property value that arises from the installation or construction of a solar or wind-powered energy device that is primarily for the production and distribution of thermal, mechanical, or electrical energy for on-site use, or devices used to store that energy. "Solar" is broadly defined to include a range of biomass technologies.

For more information see: Texas Property Tax Code §11.27


Federal

Federal Tax Credit for Efficiency Improvements: Owners of existing homes receive a tax credit worth 10% of the cost of upgrading the efficiency of the building's envelope. Installation (labor) costs are not included.

Taxpayers who purchase qualified residential energy-efficient property are eligible for a tax credit worth 10% of the system cost, including labor costs. The credit may also be applied to labor costs for assembly and original installation of eligible property.

Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum amount of homeowner credit for all improvements combined is $500 for equipment purchased during 2011.

For more information go to: DSIRE


Federal Tax Credit for Expenditures on Alternative Energy Units: A taxpayer may claim a credit of 30% of qualified expenditures for a solar-electric system, a solar water-heating system, a fuel cell system, a small wind-energy system, and/or a geothermal heat pump that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology.

For more information go to: DSIRE


Federal Energy Efficient Mortgages: Energy efficient mortgages are available to finance a variety of energy efficiency measures, including renewable energy technologies, in a new or existing home. The U.S. federal government supports these energy efficient mortgages by insuring them through Federal Housing Authority or Veterans Affairs programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency improvements, and it secures lenders against loan default.

For more information go to: Residential Energy Services Network or DSIRE


Federal Nontaxable Status of Subsidy Paid for Energy Conservation Measure: Energy conservation subsidies provided by public utilities, either directly or indirectly, are nontaxable: "Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure."

The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling and other units, any subsidy must be properly allocated.

Given the definition of "energy conservation measure," there is strong evidence that utility rebates for residential solar thermal and solar electric projects may be nontaxable. However, the IRS has not ruled definitively on this issue. For taxpayers considering using this provision for renewable energy systems, consultation with a tax attorney is advised.

For more information go to: IRS or DSIRE



This is not meant to be a comprehensive list of rebates. It only highlights those rebates that Austin Auditors feels are most relevant to the community.