Texas Backup Power Package Program
$1.8 Billion for Critical Facility Backup Power.
Texas has allocated $1.8 billion to help hospitals, fire stations, water utilities, and other critical facilities install backup power systems. This is the first program of its kind in the nation — and Sentinel will navigate every step of it for you.
What Is a TBPP?
A standardized, behind-the-meter backup power system.
A Texas Backup Power Package is a self-contained combination of:
- Solar photovoltaic (PV) arrays
- Battery energy storage
- Backup generator with on-site fuel
The system must be capable of keeping the host facility fully powered for a minimum of 48 hours without refueling or grid recharging. Projects are capped at 2.5 MW per facility.
Note: Texas statute also allows an electric school bus to serve in lieu of a traditional microgrid component — a unique option for school-adjacent or district facilities.
Funding Structure
Up to $500/kW in grants. Plus forgivable loans.
Grants
Eligible facilities can receive grants of up to $500 per kilowatt of installed backup power capacity. On a 500 kW system, that's up to $250,000 in direct grant funding — no repayment required.
Forgivable Low-Cost Loans
On top of the grant, eligible facilities can receive low-interest loans that are forgiven if the facility meets ongoing operation, maintenance, and testing requirements over the specified loan period.
We Act as Your Agent
PUCT commenters have pushed for rules allowing the vendor to handle the application on behalf of the facility. Sentinel is positioning to do exactly that — taking the paperwork burden entirely off your operations team.
$1.8B Program Scale
Over 30,000 critical facilities across Texas are potentially eligible. Texas is the first state in the nation to fund a program of this scale for distributed critical facility resilience.
Peak-Shaving & VPP Potential
The final PUCT rule is expected to clarify whether facilities can use their TBPP for behind-the-meter peak-shaving or participate in compensated Virtual Power Plant (VPP) aggregation programs — a potential ongoing financial benefit on top of the resilience value.
Grid Integration & ERCOT Role
Utilities are expected to be directed to expedite interconnection for TBPP installations. PUCT may also authorize ERCOT to direct TBPP-equipped facilities to island from the grid during major emergencies — freeing up supply for surrounding communities and reinforcing Texas-wide grid resilience.
Eligibility
Who qualifies — and who doesn't.
✓ Eligible Facilities
- Hospitals & clinics
- Police & fire stations
- Water & wastewater utilities
- Assisted living & nursing homes
- 9-1-1 emergency centers
- Community heating & cooling centers
- Gas stations & convenience stores on hurricane evacuation routes
✕ Not Eligible
- Charter schools
- Commercial oil & gas facilities
- Facilities over 2.5 MW
- Facilities planning to sell energy back to the grid
Program Timeline
What's happening and when.
Timeline is based on PUCT Project No. 59024. Final rule timing may shift. Get your facility assessed now so you're ready when the application window opens.
Don't Wait for the Window
The facilities that prepare now will be first in line.
Applications won't open until late 2026 — but the eligibility assessment, system design, and documentation work starts now. Sentinel will build your complete TBPP package so you're ready to submit from day one.
Start My Free TBPP Assessment