The Austin, Texas, City Council on April 23 approved a major investment in clean energy, authorizing two contracts to install solar energy systems across city-owned facilities -- marking the start of one of the largest expansions of municipal solar in the U.S.
The initiative will build solar installations across dozens of City buildings and properties ranging from libraries and recreation centers to office buildings and warehouses, generating at least 30 megawatts (AC) of clean energy when fully built.
“This is a massive win for our community and for climate action,” said Zach Baumer, Director of Austin Climate Action and Resilience, in a news release. “By investing in solar across City facilities, we are not only reducing emissions — we are demonstrating what it looks like for a city to lead by example and invest in a cleaner, more resilient future.”
The project uses a dual-portfolio approach to maximize scale, flexibility and financial benefit. Both contracts are expected to produce a net profit of at least $20 million for the City of Austin over the next 25 years, the city said.
One contract, with GS Solar LLC (d/b/a Big Sun Solar), will deliver City-owned solar installations that generate long-term savings through utility bill credits paid at Austin Energy's Value of Solar rate. The contract includes costs for annual maintenance and the potential for expansion to incorporate emerging solar-ready sites, should more funding become available in the future.
A second contract with PowerFin Texas Solar Projects LLC will support third-party-owned systems on City property, generating revenue and contributing to Austin Energy's Community Solar program. The contractor will make an annual payment to the City for use of City facilities, and will be compensated by Austin Energy for electricity produced at the Solar Standard Offer Rate.
“Local resources like local solar are critical to building a cleaner, more resilient energy system,” said Austin Energy General Manager Stuart Reilly. “This initiative highlights how the City is a key driver in achieving our shared sustainability goals while keeping Austin's utility bills among the lowest in Texas.”
The project was initiated via City Council Resolution in May 2025, led by Council Member Ryan Alter with co-sponsors Vanessa Fuentes, José Velásquez, José "Chito" Vela and Mike Siegel.
It is strategically timed to take advantage of federal solar tax credits available through the Inflation Reduction Act, which are being phased out. To qualify, construction must begin by July 4, 2026, or systems must be operational by the end of 2027. Project construction is expected to begin soon, with installations rolling out in phases across City facilities.
This collaborative, multi-departmental effort was led by Austin Climate Action and Resilience in partnership with Austin Energy, Austin Facilities Management, Austin Financial Services and other City departments, with technical support from the Rocky Mountain Institute, the city said.
The project supports the Austin Climate Equity Plan goal of reaching net-zero greenhouse gas emissions by 2040 and aligns with Austin Energy's targets in its Resource, Generation, and Climate Protection Plan to 2035 to expand local solar capacity in the coming decade.
