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Incentives/Policies for Renewables & Efficiency

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CPS Energy - Solar Hot Water Rebate Program   

Last DSIRE Review: 10/11/2012
Program Overview:
State: Texas
Incentive Type: Utility Rebate Program
Eligible Renewable/Other Technologies: Solar Water Heat
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, State Government, Institutional, Must be CPS Energy Customer
Amount:$0.60 per kWh saved annually (conventional 50-gallon electric water heater)
Maximum Incentive:$2,000 per account
Eligible System Size:No limits specified
Equipment Requirements:Must have a permanently installed electric back-up;
Systems must be new, SRCC OG-300 certified and have a 5-year warranty on all major components and
Installation Requirements:System must meet all applicable codes and be installed by a CPS Energy registered installer (minimum qualifications apply);
System must be designed for frost protection and scale elimination or remediation
Ownership of Renewable Energy Credits:CPS Energy, unless required for LEED certification
Funding Source:Save for Tomorrow Energy Plan (STEP)
Program Budget:~$2.5 M per year (PV and SWH); may be adjusted according to demand
Expiration Date:STEP extends through 2020, annual program year expiration dates may apply
Web Site:

As part of a larger program designed to reduce electricity demand within its service territory, CPS Energy offers rebates for solar water heaters to its customers. In general, any CPS Energy customer is eligible to receive the rebate; however, systems must be new and have a permanently installed electric back-up system. Rebates will be calculated according to the annual savings estimated by the system's Solar Rating Certification Corporation (SRCC) OG-300 table as applied in the San Antonio area. Estimated annual electricity savings will be multiplied by a standard rate of $0.60/kilowatt-hour (kWh) in order to determine the value of the one-time rebate. The maximum rebate is $2,000, although there are no explicit size limitations on eligible systems. The rebate is reflected as a credit on the customer's bill.

Customers will be responsible for choosing their own contractor from a list of installers registered with CPS Energy. Customers are also responsible for obtaining all applicable permissions and permits associated with the installation and operation of the system. Applicants will be required to sign over all renewable energy credits (RECs) produced by the system to CPS Energy, unless the RECs are required for LEED certification. All applications must be submitted and approved before the installation of the system. Motors, pumps, batteries and all other devices associated with the operation of the solar water heating system will not be covered by the rebate.

The CPS Energy solar water heating rebate program is funded out of the San Antonio's Save for Tomorrow Energy Plan (STEP), which also offered assistance for PV systems and residential and commercial energy efficiency improvements. The solar rebate portion (PV and SWH) is expected to have a budget of roughly $2.5 million per year through 2020, although this could vary from year to year. The city of San Antonio's Office of Environmental Policy provides updates on the STEP program. 

  Public Information - CPS Energy Efficiency Rebates
CPS Energy
Mail Drop 340117, PO Box 1771
San Antonio, TX 78296-1771
Phone: (210) 353-2728
Fax: (210) 353-5707
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.