In 2004, Austin Energy created a Solar Rebate Program to subsidize the installation of solar panels for homes and businesses. The program aimed to encourage local participation in this renewable energy source by covering up to two-thirds of the cost for solar panel installation. However, the program has become so popular that it has already received enough applications to completely use up the program’s $4 million budget.
Due to the lack of funds available for the program, Austin Energy will decide next week whether or not to decrease the amount of the subsidy or suspend the program for some or all who are currently eligible, such as commercial and nonprofit organizations. If Austin Energy decides to lower the subsidy amount, this change would not only apply to future applications, but it would also be retroactively applied to previous applicants who have already begun solar panel installations with expectations to receive the full subsidy amount. However, these people may be getting a much smaller check from Austin Energy than they were counting on. While the price of solar panels has dropped over 40 percent within the last year, Austin Energy’s decision could still force many of these private solar projects to be canceled.
The cutbacks to the solar rebate program are official: rebates for businesses and nonprofits are suspended until January 2010, and the 135 applications filed since September have been suspended until Nov. 1 when residents can reapply for a smaller rebate.
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