Relating to electric market payments for and an exemption from sales and use taxes for customer-sited distributed generation.

HB 2303 creates a sales and use tax exemption for small backup power systems (under 200 kW) installed at homes or businesses to provide electricity during grid outages. It also establishes a program allowing utilities to aggregate these customer-sited systems (up to 10 MW capacity) to provide dispatchable power during outages, improving grid reliability. The bill specifically exempts qualifying backup devices from state taxes and requires the comptroller to define how customers claim this exemption. It directly affects residential and commercial property owners with backup generators and utilities managing grid stability in the ERCOT region.