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Get a Free QuoteYour electricity plan can make or break your solar investment. The wrong plan wastes your excess production. The right plan can double your effective savings rate. Here is exactly what to look for in the deregulated Texas market — and which REPs deliver the best value for solar owners in 2026.
Texas is deregulated — you choose your Retail Electric Provider (REP). But most plans are designed for consumers, not producers. Here is the problem.
On a standard plan with no buyback, your excess solar production is exported to the grid for $0.00. During peak solar hours (10 AM - 3 PM), a typical Texas system exports 40-60% of its production. That is 40-60% of your investment generating zero return.
Many “cheap” plans on PowerToChoose.org have minimum usage charges. If your solar reduces net consumption below 1,000 kWh, a hidden penalty kicks in. Your “8-cent plan” suddenly costs 12-15 cents per kWh effective rate. Solar owners get hit hardest.
A solar buyback plan with competitive export rates can effectively double your annual savings compared to a standard plan. For a 10 kW system in Texas, that is the difference between saving $1,200/year and $2,200/year — a $25,000+ difference over the system's lifetime.
Key Insight
In deregulated Texas, your electricity plan choice is as important as your equipment choice. A premium solar system on the wrong plan will underperform a basic system on the right plan. Always finalize your electricity plan before or during your solar installation — not after.
Not all electricity plan types are created equal when you have solar panels. Here is how each type stacks up — from best to worst for solar owners.
Designed specifically for solar owners. You export excess solar at a specified buyback rate (typically $0.06-0.10/kWh) and buy from the grid at a fixed retail rate. Some plans offer 1:1 net metering where your export credit equals your import rate. These are the gold standard for solar owners in deregulated Texas.
Pros
Cons
You pay different rates depending on the time of day. Typically, off-peak hours (10 PM - 6 AM) are cheap ($0.05-0.08/kWh), and on-peak hours (1 PM - 7 PM, weekdays) are expensive ($0.12-0.20/kWh). Solar panels produce during on-peak hours, so you avoid the most expensive electricity. Pair with a battery for maximum savings.
Pros
Cons
These popular plans offer free electricity during nights (typically 9 PM - 6 AM) or weekends in exchange for higher daytime rates. For solar owners, the high daytime rate is offset by your panels. The free nights help charge your battery or EV. However, the daytime rate is usually much higher than standard plans.
Pros
Cons
Standard fixed-rate plans charge the same rate 24/7, regardless of when you use electricity. They do not offer any buyback or credit for exported solar. Your panels reduce your consumption, but any excess production is given to the grid for free. These plans are common but terrible for solar owners.
Pros
Cons
Prepaid plans have no contract and no credit check, but they charge premium rates and have zero solar export provisions. Most charge $0.15-0.20/kWh with no buyback. Some even have anti-solar clauses. These are the worst possible option for solar owners.
Pros
Cons
Your TDSP (Transmission and Distribution Service Provider) determines which REPs are available. Here are the best solar buyback options in each major territory.
100% renewable. One of the few true 1:1 net metering plans in Texas. Slightly higher retail rate ($0.13-0.15/kWh) but full credit for exports.
Large provider with established solar buyback program. Multiple plan tiers. Good customer service infrastructure.
Solar-focused REP with competitive buyback rates. Offers both flat-rate and TOU solar plans. Growing in popularity.
Same 1:1 program as DFW. Available in CenterPoint territory. Premium retail rate but maximum export value.
Major Houston REP with dedicated solar plans. Bill credit for excess generation. Strong local presence.
Competitive smaller REP with transparent solar pricing. No hidden fees. Month-to-month options available.
Available in AEP territory. Same program structure. Fewer plan options than in Oncor/CenterPoint areas.
Value-oriented REP with straightforward solar buyback. Lower retail rate than Green Mountain. Good for high-production systems.
Available across AEP territory. Consistent program terms. Contract lengths from 12-36 months.
REP availability and rates as of Q1 2026. Rates change frequently. Always verify current offers directly with the REP or on PowerToChoose.org. Municipal utilities (Austin Energy, CPS Energy, San Antonio) and co-ops (PEC, CoServ) are not deregulated and have fixed programs.
The PUC's PowerToChoose.org marketplace is the official comparison tool for Texas electricity plans. But it is not designed with solar owners in mind. Here is how to navigate it effectively.
Use the "Renewable Content" filter to narrow results. Plans with 100% renewable content are more likely (but not guaranteed) to offer solar buyback options. There is no dedicated "solar buyback" filter, which is frustrating. You will need to read Electricity Facts Labels (EFLs) individually.
The advertised rate on PowerToChoose is calculated at 1,000 kWh usage. Solar owners often consume far less from the grid. A plan advertising 8 cents/kWh might cost you 14 cents/kWh at 500 kWh net consumption due to minimum usage charges and base fees. Always download and read the Electricity Facts Label for the real cost structure.
Solar panels will reduce your net grid consumption. If you currently use 1,500 kWh/month and your panels produce 1,000 kWh, your net consumption is 500 kWh. The plan cost at 500 kWh is your real rate. Plans with high minimum usage penalties look cheap at 1,000 kWh but are expensive at 500 kWh.
The best approach is to find a plan you like on PowerToChoose, then call the REP and ask specifically: "What is your solar buyback rate? Do you offer net metering? Is there a minimum usage charge? What is the export credit mechanism?" Many REPs have solar-specific plans that are not listed on PowerToChoose because the marketplace does not support solar plan comparison features.
If you are installing solar soon, choose a short contract (month-to-month or 6 months) on a standard plan, then switch to a solar buyback plan once your system is commissioned. This avoids paying an Early Termination Fee to get out of a non-solar contract. If your solar is already installed, lock in a 12-24 month solar buyback plan for rate stability.
Texas electricity bills are notoriously complex. These fees can significantly impact your solar ROI — and most solar installers never mention them.
Many plans have a minimum usage requirement (typically 1,000 kWh/month). If your solar reduces your net consumption below this threshold, you pay a penalty — often $10-15/month. This effectively punishes you for having solar. Always check for minimum usage clauses.
Fixed monthly charges ($5-15/month) that apply regardless of consumption. These are not affected by solar production. They are unavoidable but vary by plan. Lower base charges are better for solar owners since they represent a larger percentage of your reduced bill.
Transmission and Distribution Service Provider (TDSP) charges are regulated by the PUC and passed through on every plan. They typically add $0.03-0.05/kWh to your effective rate. These are not negotiable and apply to all consumed (not exported) electricity. Oncor, CenterPoint, and AEP each have different TDSP rates.
Some REPs charge a monthly fee ($5-10) for bi-directional metering required for solar buyback. This is separate from the TDSP meter fee. Ask explicitly whether there is an additional charge for solar export metering before signing up.
Contract plans typically charge $100-200+ if you switch before the term ends. If you install solar mid-contract on a non-solar plan, you may need to pay an ETF to switch to a solar buyback plan. Time your solar installation with contract expiration to avoid this.
Protect Yourself: The 3-Step Fee Check
Before signing any plan: (1) Download the EFL and check the 500 kWh rate, not just 1,000 kWh. (2) Search the Terms of Service document for “minimum,” “solar,” and “distributed generation.” (3) Call the REP and ask explicitly: “If my net consumption is 400 kWh due to solar, what will my total bill be including all fees?”
If you have (or plan to add) battery storage, Time-of-Use plans unlock a powerful arbitrage strategy that can outperform even the best flat-rate buyback plans. Here is how it works.
10 AM - 3 PM: Solar panels produce maximum power. Use what you need, store the rest in your battery. If the battery is full, export to the grid at your buyback rate. On-peak TOU rates make self-consumption extremely valuable.
3 PM - 9 PM: Solar production drops but TOU peak rates are highest. Discharge your battery to power your home during these expensive hours. This avoids buying at $0.15-0.20/kWh. Some plans also allow exporting battery power for peak-rate credits.
9 PM - 6 AM: Off-peak rates are cheapest ($0.05-0.08/kWh). If your battery is depleted, grid power costs very little. Some homeowners charge their battery from the grid during super off-peak hours to prepare for the next evening peak. EV charging overnight is nearly free.
Real-World Savings Example
A 10 kW solar system with 13.5 kWh battery in Oncor territory on a TOU plan: annual grid cost drops from ~$2,400 (no solar) to ~$300-500 (solar + battery + TOU optimization). That is 80-88% total bill reduction. On a flat-rate solar buyback plan, the same system achieves 65-75% reduction. The TOU + battery combination saves an additional $300-500 per year.
Common questions about choosing the right Texas electricity plan for solar.
Technically yes, but most standard plans do not credit you for exported solar. Without a solar buyback plan, any excess electricity your panels produce is given to the grid for free. You need a plan specifically designed for distributed generation — typically called a "solar buyback" or "net metering" plan. These plans have a bi-directional meter that tracks both import and export, and they credit your account for exported power at a specified rate.
The best solar buyback rate in Texas as of 2026 is 1:1 net metering offered by Green Mountain Energy, where you receive a credit equal to your retail rate for every kWh exported. This is available in Oncor, CenterPoint, and AEP territories. Other competitive options include Chariot Energy ($0.08-0.10/kWh buyback) and TXU Energy ($0.06-0.09/kWh). Rates change frequently, so always verify current offers on PowerToChoose.org by filtering for solar/distributed generation plans.
It depends on whether you have battery storage. Without a battery, a flat-rate solar buyback plan is simpler and more predictable. With a battery, a TOU plan can be significantly more profitable — you export or avoid buying during expensive on-peak hours (when solar produces) and charge your battery during cheap off-peak hours overnight. A TOU plan with battery storage typically saves 15-25% more than a flat-rate plan, but requires active load management.
Go to PowerToChoose.org and enter your zip code. Look for the "Renewable" or "Solar" filter options. Unfortunately, PowerToChoose does not have a dedicated solar buyback filter. You will need to click into individual plan details and look for terms like "solar buyback," "distributed generation," "net metering," or "excess generation credit." Read the Electricity Facts Label (EFL) for each plan — the buyback rate and terms will be listed there. You can also call the REP directly and ask about their solar buyback options.
Unused solar credits do not transfer between REPs. When you switch providers, any accumulated bill credits are either paid out (if your plan terms allow) or forfeited. Most solar buyback plans credit your account monthly, so your balance is typically small. To minimize lost credits, switch at the end of a billing cycle. Some plans have an annual true-up where remaining credits are paid out — check your contract terms for the specific reconciliation policy.
Yes, you need a bi-directional (net) meter that tracks electricity flowing in both directions. Your TDSP (Oncor, CenterPoint, or AEP) installs this meter, usually at no cost when you interconnect your solar system. The meter swap is coordinated between your solar installer, your REP, and the TDSP as part of the interconnection process. It typically takes 2-4 weeks after your system passes inspection. You cannot export solar or receive credits until the bi-directional meter is installed.
They can be, but with caveats. Free nights plans offer free electricity from 9 PM to 6 AM in exchange for higher daytime rates ($0.15-0.22/kWh). If your solar covers most of your daytime usage, the free nights are pure bonus — great for overnight EV charging or battery recharging. However, these plans typically do not include a solar buyback component, so exported daytime solar earns nothing. If you have a battery, you can store excess solar and use it during the expensive 6-9 PM window before free hours begin. Overall, a dedicated solar buyback plan usually provides better total value.
Our IQ tool analyzes your solar production, usage patterns, and utility territory to recommend the optimal electricity plan — so every kWh your panels produce delivers maximum value.