Some low-income Austinites will get a new shot at low-cost energy after action from City Council last week. The city will allocate more than $30 million in federal funding to Austin Energy to install solar panels on the rooftops of certain homes for free.
The funds came from a larger pool of $249 million, which the Environmental Protection Agency granted to the Texas Solar for All Coalition on July 9. As a member of the coalition, Austin Energy receives its chunk to install panels and batteries with the aim of reducing energy bills, helping stabilize the Texas power grid, and creating new green energy jobs.
“People have tried to think about economic models that work to get the electricity to low-income families,” said Brian Korgel, director of the Industry/University Cooperative Research Center for a Solar Powered Future. “Solar for All is an injection of a lot of money, and a lot of activity that’s really trying to move the bar to make this happen.”
“The challenge for people is that up-front cost to make [solar] accessible.” –Brian Korgel, Industry/University Cooperative Research center Director
The program prioritizes low-income households, as well as people who are medically disadvantaged. Austin Energy sets the bar for “low income” at or below $62,000. Solar for All recipients will get solar panels and batteries installed for free as well as 20% off their electric bills guaranteed.
Austin Energy will retain ownership of the solar panels for 15 years, before giving households the opportunity to purchase ownership. Korgel said this model can help break down the economic barrier to low-cost, green energy.
“If you can afford to get a solar panel on your house and pay for the permitting and everything, you’re generating extremely low-cost electricity,” Korgel said. “The challenge for people is that up-front cost to make it accessible.”
The new solar panels and batteries will also provide backup power in the event of a grid failure. This adds a layer of protection for the medically vulnerable, such as people with illnesses or disabilities who rely on a safe, stable environment or medical devices.
Across the entire country, Solar for All investments amount to $7 billion. The program is a result of the Greenhouse Gas Reduction Fund under the Biden administration’s Inflation Reduction Act. Another key goal is to encourage the green energy transition by providing stable green jobs as the country decreases its reliance on oil and gas. The Texas Solar for All Coalition promises to support workforce training and work alongside minority- and women-owned businesses.
“The most important reason is addressing climate change,” Korgel said. “And then you have local health impacts as well. We really want to reduce those emissions, reduce the health impacts.”