Texas Backup Power Package (TBPP) Program

Texas Backup Power Package (TBPP) Program

Funder: State of Texas (Texas Energy Fund created by Texas Legislature in 2023)

Total Funding Available: $1.8 billion from the $10 billion Texas Energy Fund

Award Structure: Grants up to $500/kW plus forgivable low-cost loans

Overview: A program to help qualifying critical facilities acquire and install standardized Texas Backup Power Packages to ensure community resilience during grid failures and emergencies.

Geographic Scope: Texas (statewide)

What is a TBPP:

Standardized, stand-alone, behind-the-meter system combining:

- Backup generator
- Photovoltaic (solar) arrays
- Battery storage
- On-site fuel

Can keep host facility powered and operational for at least 48 hours without refueling or recharging from grid

Can include an electric school bus in lieu of a microgrid

Eligible Critical Facilities (must support public safety, health and well-being):

Police and fire stations

Hospitals and clinics

Assisted living centers

Gas stations and convenience stores in rural areas and along hurricane evacuation routes

Community heating and cooling centers

9-1-1 centers

Water and wastewater utilities

Eligibility Restrictions:

Must be less than 2.5 MW in size

Cannot be charter schools

Cannot be commercial oil and gas facilities

Cannot use TBPP to sell energy back into grid

Cannot use for peak-shaving or demand response (final rule pending clarification)

Administrative Agency: Public Utility Commission of Texas (PUCT)

Rulemaking Status:

Active rulemaking (Project No. 59024)

Proposed rule issued December 2025

Expected final rule spring 2026, fully resolved after rehearing by summer

Application process expected to open late 2026 or early 2027

First financial awards expected 2027

Final Rule to Address:

Minimum vendor warranties for TBPPs

Common cost and performance metrics for vendor comparison

Vendor acting as applicant agent authority

Host facility refueling, maintenance, and testing requirements

Potential use for peak-shaving or demand response

ERCOT directive to island from grid during emergencies

Utility interconnection expediting

Background: Created by Texas Legislature in 2023 following Winter Storm Uri to fund new generation and improve grid resilience. This is the first program in the nation to offer substantial financial assistance to critical facilities for backup power systems.

Contact Information:

Public Utility Commission of Texas (PUCT)

Texas Solar Energy Society

P.O. Box 1447, Austin, TX 78767-1447

Phone: 210.772.7720

Email: info@txses.org

Website: txses.org