Texas Backup Power Package (TBPP) Program

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

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: 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

Application Process

Current Status: Application process not yet open (as of April 2026)

Expected Timeline:

• Final PUCT rule: Spring 2026
• Application process opens: Late 2026 or early 2027
• First financial awards: 2027

How to Apply (once opened):

1. Eligible critical facility submits application through PUCT
2. May designate chosen vendor to act as agent in application
3. Facility selected based on PUCT-defined criteria
4. Vendor provides TBPP proposal and installation plan

Required Information (expected to include):

• Facility location and details
• Critical function description
• TBPP design specifications
• Vendor information and qualifications
• Maintenance and testing plan
• Refueling plan

Funding Application:

• Grant award up to $500/kW
• Forgivable low-cost loan component
• Award criteria to be specified in final rule

Loan Forgiveness Criteria: To be specified in final PUCT rule

Monitoring Requirements:

• Host facility must meet minimum refueling requirements
• Maintenance obligations
• Testing requirements
• Several years of compliance expected