The Austin City Council accepted $31.5 million in grant funds from the U.S. Environmental Protection Agency on Oct. 24, amending Austin Energy’s operating budget to include three contracted full-time positions and to implement residential rooftop solar projects.

The Biden-Harris administration and EPA announced a $7 billion Solar for All program in April to deliver residential solar projects and advance environmental justice. As a member of the Texas Solar for All Coalition, Austin Energy received nearly $32 million of the $249 million originally awarded to Harris County. Matthew Mitchell, the Austin Energy media public information officer, said the Texas Solar for All Coalition received approval for the grant in late spring.

“The Solar for All grant is a really exciting opportunity to expand solar to what has historically been underserved parts of town,” Mitchell said.

According to the council, the five-year grant “supports Austin Energy’s efforts to create solutions that address climate change.” Tim Harvey, the Austin Energy customer renewable solutions manager said they plan to install 20 megawatts of solar panels and 35 megawatts of solar batteries, which makes the energy storable. One megawatt could power about 200 Texas homes, according to the Electric Reliability Council of Texas.

“It’s promoting progress towards our environmental goals and decarbonization goals, as well as incorporating batteries in a holistic way,” Harvey said. “That will be a great opportunity for us to create a virtual power plant, which helps us to be more flexible and have higher resiliency and lower costs.” 

As a sub-recipient of the EPA funds, Austin Energy must enter into an interlocal agreement with Harris County to access the grant. Harvey said he is aiming for a completed agreement early next year. Once approved, Austin Energy will fund a workforce development program and community engagement.

“We would be working with the community to understand any barriers they may have, … and part of the EPA’s mission is to have us do that with the community,” Harvey said.

The effort aims to identify 2,500 residential, low-income houses and 25 multi-family buildings, which may include West Campus, to build third-party solar and batteries, to which Austin Energy will have access. During the first 15 years, the site residents would have access to the batteries in emergencies. After the first 15 years, hosts will own the solar roofing and battery programs on their homes.

“All of that solar energy is going to low-income customers and will facilitate a 20% bill discount for those participants for the first 15 years,” Harvey said. “After the 15-year period, Austin Energy and the third party will flip the ownership of those assets, the solar and the battery, to the host at no cost.”

Environmental engineering freshman Adrian Pruneda said these funds being targeted towards solely low-income homes will have a more significant effect since installment costs deter many potential solar energy users.

“The only way we can have a future for future generations is if we start to put money into these renewable causes,” Pruneda said. “I think it’s great that we’re putting money towards solar panels for low-income families (because) you can get this to rich people and that won’t be as big of an effect.”