This is the conundrum of doing good things for the environment: How do you embrace green energy without the old technology providers becoming broke and obsolete in the process? That is the dilemma faced by the City of Austin and Austin Energy as they try to promote solar energy.

Austin Energy began an initiative to increase solar power in the community by offering rebates for installing solar roof-top panels. It is one of the largest solar rebate programs in the country and has provided more than $18 million in solar rebates since 2004. It has been so successful, in fact, that the program had to be revamped recently to accommodate the volume of customers who want to take advantage of the solar rebates. The 400 applications received so far this year far exceed the Austin Energy budget for the program.

Now Austin Mayor Lee Leffingwell has proposed a new program called "Energize Austin" to provide solar power to more people in the community. The program would offer low-interest loans to allow people to install solar arrays on the roof of their home. A large enough solar panel system could essentially eliminate electricity bills, and greatly reduce the income for electricity providers like Austin Energy.

A solar array works through photovoltaic technology that turns sunlight directly into electricity. An average customer can get 10 -40 percent of their electricity through solar panels on the roof. Austin Energy also offers "net billing" meaning that customers using solar energy can get credit for the times the solar panel produces more energy than a home consumes. Solar panels are easy to maintain and can be easily upgraded to larger systems from the existing system.

According to Austin Energy, the whole community benefits from solar power because it is a clean, quiet, renewable energy that reduces the need for energy made from fossil fuels, like coal and oil. It offers a cleaner, healthier environment, as well as creates economic opportunities. For example, due to the success of the solar rebate program, Austin Energy went from using four installers to 24.

But with the City now proposing to loan customers the money for the cost of installing a solar array, something the rebate program did not do,
Austin Energy is concerned that solar energy use in Austin could expand too quickly. According to the Austin-American Statesman, Austin Energy General Manager Roger Duncan says "the city could have trouble maintaining its grid unless it comes up with a new business model for the utility." Austin Energy is using a 10 year plan for the rebate program to allow for the price of the technology to become more competitive.

Austin is probably not unique in this green dilemma. Berkeley, CA came up with the loan idea that Leffingwell is now proposing for Austin, however solar advocates say it did not dramatically change solar use in Berkeley. Austin Energy should be commended for its many green initiatives, not just the solar rebate program. The hope is that there is a way forward to improving the environment without everyone, including the companies that have provided services for decades, having to pay too high of a price.


Ki lives in the Austin area, where he enjoys biking the hill country. His website compiles information on Austin Texas real estate. His site has a graphical search of the Austin MLS along with a statistics blog on Austin real estate.