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Guide to Texas Net Metering and Solar Buyback Plans in 2023

Texas Net Metering and solar buy back plans

Sometimes, solar systems produce more electricity than a home uses, especially when no one's home during the day. So, what happens to that extra power? Well, many energy companies have special programs that reward homeowners for this extra energy. These programs might have different rules, but they all aim to give value to homeowners for that surplus power.

Even though the Solar Energy Industries Association (SEIA) ranked Texas as the second-best state for solar, right after California, Texas still doesn't have standard rules for giving homeowners credit for the extra solar energy they produce. Instead, we have our own set of solar buyback programs, which work a bit like those credit systems.

Navigating these programs can be tricky due to Texas' unique electricity market. But don't worry! We're here to help. In this guide, we'll break down everything you need to know about these solar buyback plans, whether you can choose your own, and whether going solar is the right move for you.


In This Article:


What Is Net Metering?

Net metering is all about managing that surplus energy. Instead of letting it go to waste, this system ensures every kilowatt-hour produced but not consumed by your home is sent back to the grid. And here's where it gets interesting: many electricity providers in Texas are more than willing to buy back this excess power or credit you for it.

Advantages of Net Metering

  • Economic Benefits: Think of net metering as your personal energy savings account. Every bit of energy you don't use gets credited back to you. Some providers might even pay you the retail price per kWh, while others might offer the wholesale cost. Either way, your electricity bill sees a pleasant drop.

  • Environmental Impact: Beyond the economic perks, there's the undeniable environmental benefit. By optimizing the use of solar energy, you're playing a part in reducing carbon footprints and championing a greener planet.

How It Works

The Process: Every surplus kilowatt-hour is sent back to the grid and then reflected as a credit on your next power bill. Simple, right?

Texas and Net Metering: A quick heads-up for those in the Lone Star State: Texas doesn't have a blanket rule for net metering. While it's not a statewide mandate, many Retail Electricity Providers (REPs) and local utilities have jumped on the bandwagon, each with their unique spin on the concept. Some might roll your credits to the next month, others might have a cap, and a select few might even hand over cash for the extra energy. More on this in the later sections.

Texas’ Electricity Market

Before diving deep into the world of solar in Texas, it's crucial to get a grip on the state's unique electricity landscape. Ever thought about why your neighbor might have different electricity rates or solar buyback options than you? It all boils down to whether you're in a deregulated or regulated part of Texas.



In a nutshell, around 85% of Texas enjoys the perks of a deregulated electricity market. What does that mean for you? Well, the supply of electricity (who you buy it from) is separate from its delivery (who brings it to your home).


Here's where it gets interesting... With deregulation, you've got choices. You can shop around for the best rates from various Retail Electric Providers (REPs). Thinking of going solar? You'll want to find an REP with a stellar solar buyback plan to maximize those sunny day savings. But a quick heads-up: while you can pick your REP, you don't get a say in your Transmission and Distribution Utility (TDU). Whether it's Oncor, AEP, CenterPoint, or Texas New Mexico Power, they handle the heavy lifting of delivering that power to your doorstep.



On the flip side, the remaining 15% of Texas operates under a regulated electricity market. In these areas, choice isn't the name of the game. Your local municipal utility or electric co-op wears both hats—they supply and deliver your electricity.

Implications for Solar Consumers

So, if you're basking in the sun in a regulated part of Texas, your solar options are a tad more streamlined. The only solar buyback plans on the table are those offered by your local utility. It's a simpler setup, but it does mean fewer choices when it comes to maximizing those solar benefits.

Electricity Companies that Offer Net Metering Programs

Solar energy is no longer just a buzzword; it's a paradigm shift. And guess what? More and more electricity companies are hopping on the solar bandwagon. If you're in Texas, you're in luck. Thanks to deregulation, you've got choices... and some of these choices are shining brighter than others.

Leading Companies

In the vast landscape of Texas electricity providers, a select few stand out for their commitment to solar. As of 2023, here are the big players offering solar buyback plans:

  • Almika Solar: A rising star in the solar space.

  • Amigo Energy: Your friendly neighborhood solar supporter.

  • Champion Energy Services: Truly championing the solar cause.

  • Chariot Energy: Steering the solar chariot forward.

... and the list goes on, with names like David Energy, Energy Texas, Gexa Energy, and the ever-popular Green Mountain Energy. Not to forget the likes of Octopus Energy, Reliant Energy, Rhythm Energy, Shell Energy, and TXU Energy.

What to Look For

Navigating this solar landscape can be a tad overwhelming, but here's the deal: Look for companies that not only offer competitive rates but also have transparent terms and conditions. How do they credit you for surplus energy? What's their track record like? Are there any hidden fees?

REP Solar Buyback Rates in Deregulated Texas

As we mentioned earlier, if you're residing in one of Texas' deregulated zones, you've got to choose an REP. And if solar's on your mind, you'll want to zero in on those REPs with solar buyback offerings.

Now, here's the deal: Texas, the grand Lone Star State, boasts over a hundred REPs. But not every solar buyback plan from these folks is cut from the same cloth. To make things clearer, we've bucketed the plans from these REPs into three distinct categories.

Uncapped Credit Plans

Here's the scoop – uncapped credit plans are where the sky's the limit. No cap on how much excess solar power gets credited back to you. Think of those sunny days when your panels are basking... every extra kilowatt-hour they churn out is money back in your pocket.

Top Providers:

  • Pulse Power: Leading the charge with no limits on solar buyback.

  • Reliant Energy: Ensuring every ounce of your solar effort counts.

Credit Cap Plans

Now, switching gears, we have credit cap plans. These set a max on the solar energy you can get credited for each month. It's like having a monthly solar "quota."

Top Providers:

  • Green Mountain Energy: Big on green, but with a solar buyback cap.

  • Rhythm: Marching to their own beat, but with a cap in tow.

  • TXU Energy: A veteran in the energy game, now with capped solar buyback rates.

Real-time Metering Plans

Real-time metering plans are a different breed. They credit you instantly, based on the exact moment's market price of electricity. It's dynamic, fluctuating throughout the day.

Top Providers:

  • Octopus: They're not just about tentacles; they're about instant credits based on real-time rates.

  • MP2 Energy: Another major player in the real-time game, ensuring you get the most current rates for your solar output.

Which Should You Pick?

Comparison: Deciding can be a pickle. Uncapped plans, especially from Pulse Power, often offer the juiciest deals. But if Pulse isn't on your grid, Rhythm and TXU Energy are still in the race. And for those who like to live on the edge, real-time metering plans from Octopus and MP2 Energy offer a unique twist. It's all about sizing up your energy profile and seeing which plan fits like a glove.

REP Solar Buyback Rates in Regulated Texas

In the regulated regions of Texas, going solar is pretty straightforward. You're either in with a utility that offers a solar buyback plan, or you're not. And if they do, it's either a thumbs up or a thumbs down on the plan's quality.

Now, let's spotlight some of the big players in these regulated areas:

  1. CPS Energy: Based in San Antonio, they offer a "net billing" plan. Here's the gist: solar energy up to your monthly usage gets credited at the full-retail rate. Produce more than you use? You'll get credited, but at a lower rate. A heads up for San Antonio folks – CPS Energy's solar incentives are changing, so it's wise to jump in sooner rather than later.

  2. Austin Energy: Serving Austin and its neighbors, they've got a unique approach. Instead of the usual retail rate, they credit solar energy at the "Value of Solar" rate. This rate considers various factors, from energy savings to environmental benefits. The best part? Your solar energy might just be worth more than the grid energy!

  3. Brownsville Public Utilities Board (BPUB): Their solar buyback program is akin to real-time metering. The excess energy you produce is valued at the Fuel & Purchase Energy Charge (FPEC). But, a word of caution – the savings might not be as high as other Texas utilities.

  4. CoServ: Operating in North Texas, this electric cooperative's solar buyback program credits your solar energy at the retail rate, but only up to your monthly usage. Anything extra? Well, no credits for that.

  5. Entergy Texas: With a vast customer base, they offer three net metering options. Option 1: no purchase of your solar electricity. Option 2: they'll buy your excess solar energy, but at a rate lower than retail. Option 3: they buy all your solar-produced electricity, but the savings might be a tad lower than Option 2.

So, what's the takeaway? If you're in regulated Texas, it's crucial to understand your utility's solar buyback plan. And remember, while solar is a bright idea, the best plan for you shines down to your individual needs. Ready to harness the sun? Let's light up Texas together by getting a quick free solar quote today.

Final Recommendations

Think about it... Solar isn't just about saving a few bucks on your electric bill. It's a game-changer. Environmentally, we're talking about reducing that carbon footprint. Economically? It's an investment that'll pay off in the long run. Plus, who doesn't love the idea of harnessing the sun's power? It's clean, it's green, and it's the way forward.

Remember, not all solar plans are created equal. It's like shopping for a new pair of shoes – you've got to find the right fit. Want to maximize those benefits? Look for net metering. No net metering in your area? No sweat. Hunt down the best feed-in rate you can find. And those rollover credits? They're gold. Especially when your panels are soaking up that Texas sun.

In a nutshell? Solar's not just the future... it's the now. Whether you're in bustling Austin or the heart of El Paso, there's a solar solution waiting for you. Ready to shine bright with solar? Let's light up the Lone Star State together!


What is the average cost of solar panel installation in Texas?

In Texas, the average cost of solar panel installation can vary based on several factors, including the size of the system and the specific location. However, as of 2023, the typical range is between $2.50 to $3.50 per watt. So, for a standard 6kW system, you're looking at an investment of roughly $15,000 to $21,000 before incentives. Remember, local rebates and federal tax credits can significantly reduce this upfront cost.

How long does it take to see a return on investment for solar panels?

Can I switch my electricity provider if I'm not satisfied with my current solar buyback plan?

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