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Get a Free QuoteIn Texas's deregulated ERCOT market, your choice of Retail Electric Provider (REP) determines whether your solar panels earn retail credit or pennies. We ranked every major solar buyback plan — plus the best options for EV drivers, budget shoppers, and green energy advocates.
Texas has NO statewide net metering. In the ERCOT deregulated market, your solar buyback rate depends entirely on your REP. Some REPs pay 1:1 retail (≈15¢/kWh); others pay wholesale (4–6¢/kWh) or $0. This is the most important factor in choosing a plan if you have solar.
Texas runs a unique electricity market. About 85% of the state is served by ERCOT (Electric Reliability Council of Texas), a deregulated wholesale market where you choose your own power supplier. Here is what you need to know before comparing plans.
The Grid Operator
ERCOT manages the physical grid — generation, transmission, and balancing supply and demand. You cannot choose ERCOT; it is the infrastructure backbone. ERCOT sets wholesale prices that REPs buy electricity from.
Transmission & Distribution Utility
Your TDU owns the physical wires, poles, and meter at your home. You cannot choose your TDU — it is determined by your address. TDU delivery charges appear on every bill (4–6¢/kWh) regardless of your REP.
Retail Electric Provider
Your REP buys electricity from ERCOT and sells it to you. You freely choose (and switch) REPs. REP rates cover energy only — TDU delivery charges are separate. REPs also set solar buyback policies.
DFW Metroplex + West TX
Dallas, Fort Worth, Plano, Arlington, Frisco
Greater Houston
Houston, The Woodlands, Sugar Land, Katy, Pasadena
West & South Texas
San Angelo, Laredo, Corpus Christi, McAllen
Rural Texas
New Braunfels, Texas City, Wichita Falls
Note: Municipal utilities (Austin Energy, CPS Energy, Garland Power & Light, etc.) and co-ops are NOT part of ERCOT deregulation — they have their own programs and rates.
PowerToChoose.org is Texas's state-run comparison tool (managed by the Public Utility Commission of Texas). It lists every available REP plan in your ZIP code. Always use it to verify rates — and always click to the Electricity Facts Label (EFL) to see the all-in rate at your actual usage level.
Understanding plan types is essential before comparing providers. Each type has a different pricing structure — and different implications for solar homeowners and EV drivers.
Locked energy rate for 6–36 months. Protects against ERCOT price spikes. Most popular choice for price certainty.
Pros
Cons
Rate changes monthly with ERCOT wholesale market. No contract, no ETF. Can be cheap — or catastrophically expensive.
Pros
Cons
Tied to ERCOT real-time settlement point price or a specific index. More transparent than variable, but similar volatility.
Pros
Cons
Different rates by time of day. Peak hours (usually 3–8pm) cost more; off-peak (overnight, mornings) cost less.
Pros
Cons
Credits you for excess solar exported to the grid. Rates range from 1:1 retail to wholesale (4–6¢). This is the plan type you need if you have solar.
Pros
Cons
$0 energy charge during off-peak windows (e.g., 9pm–6am or all weekend). Higher daytime rates offset the free periods.
Pros
Cons
If you have solar panels, your REP plan is as important as your system size. A 1:1 buyback plan can double the financial value of your solar versus a wholesale-rate plan.
| Provider & Plan | Buyback Rate | TDU Territory | Renewable | ETF |
|---|---|---|---|---|
TXU Energy Solar Buyback Best Buyback Rate | 1:1 retail (≈15–16¢/kWh) | Oncor, CenterPoint | No | $150 |
Green Mountain Energy Solar Buyback Best Green Option | ≈10–12¢/kWh fixed credit | Oncor, CenterPoint, AEP | 100% | $150 |
Chariot Energy Solar Buyback Competitive Flat Rate | ≈8–10¢/kWh fixed | Oncor, CenterPoint | 100% | $100 |
Reliant Energy Solar Savings | Tiered: 6–14¢/kWh | Oncor, CenterPoint | Optional | $175 |
Gexa Energy Solar Buyback Best in Oncor Territory | ≈7–9¢/kWh | Oncor | Partial | $100 |
Full retail credit for every kWh exported. Best overall for solar value in DFW and Houston.
100% renewable energy + competitive buyback. Best for solar owners who want clean energy.
Competitive flat buyback rate across territories. Good fallback when TXU is unavailable.
Tiered buyback based on system size and export volume. Larger systems earn lower ¢/kWh.
Competitive in Oncor territory (DFW). Limited availability — confirm by address.
Always verify on PowerToChoose.org
REP plans change frequently. Rates shown above are approximate ranges for Q1 2026. Before signing, always verify the current EFL on PowerToChoose.org or directly with the provider. Check the buyback rate, base charge, and minimum usage fees.
EV owners who charge overnight can save $100–$300/year by choosing a TOU or free-nights plan. A Tesla Model 3 charged entirely on free-night rates can reduce annual charging costs from ~$600 to near $0.
Free nights (typically 9pm–6am) mean $0 energy charge overnight. Perfect for EV owners who plug in before bed. Higher daytime rates apply.
Providers: Reliant, Green Mountain, TXU, NRG. Check current offers on PowerToChoose.org.
TOU plans charge more during peak demand (typically 3–8pm weekdays) and less off-peak. Ideal for EV drivers with flexible schedules who can shift charging and appliance use.
Providers: Octopus Energy (Intelligent Octopus Go), TXU TOU options.
Solar + Free Nights: Be Careful
If you have solar panels, free-nights plans are usually a bad combination. Your panels generate power during daytime — when rates are highest — but if you export to the grid, you may receive credit at the "free" night rate ($0) rather than the daytime rate. Check the EFL carefully for export/buyback terms.
The cheapest plans in Texas are typically fixed-rate contracts at 10–14¢/kWh all-in at 1,000 kWh/month usage. Here is how to compare apples to apples.
500 kWh/month
Typical with solar
12–16¢
Typical all-in rate range
1,000 kWh/month
Average TX home
11–14¢
Typical all-in rate range
2,000 kWh/month
High usage / large home
10–13¢
Typical all-in rate range
Several Texas REPs offer 100% renewable electricity plans — sourced from wind, solar, and hydroelectric generation. These plans typically cost 1–3¢/kWh more than standard plans.
Texas-born green REP. 100% renewable since 1997. Solar buyback available.
100% solar-powered. Flat-rate billing with no peak/off-peak complexity.
Offers renewable add-on with their solar buyback plans. Largest REP in TX.
100% renewable with a tech-forward approach. Variable pricing tied to ERCOT wholesale with green sourcing.
Switching REPs in Texas is free, fast, and causes zero interruption to your service. The same wires deliver the same electricity — only the billing company changes.
Your Electric Service Identifier is on your current bill. You need it when signing up with a new REP.
Enter your ZIP. Filter by plan type. Always click the EFL link — not just the advertised rate.
The new REP submits a switch request to your TDU. No calls to your old REP needed.
If you are mid-contract, your old REP may charge an early termination fee ($50–$300). Compare savings to decide.
Switches typically complete within 1–3 business days. No technician visit required.
If you have solar, call the new REP to confirm your buyback rate is active and matches the EFL.
Your TDU delivery charge covers the cost of maintaining the grid infrastructure. It appears on every bill regardless of your REP — you cannot choose a lower delivery charge by switching providers.
| TDU | Area | Approx. Delivery Rate | Monthly Base |
|---|---|---|---|
| Oncor | DFW | ~4.8¢/kWh | ~$3–5/month |
| CenterPoint | Houston | ~5.2¢/kWh | ~$4–6/month |
| AEP Texas | West/South TX | ~4.5¢/kWh | ~$3–4/month |
| TNMP | Rural TX | ~5.5¢/kWh | ~$5–7/month |
Why this matters for solar: Your TDU delivery charge is calculated per kWh of electricity you import from the grid. Solar reduces your import, reducing your delivery charge. However, even with a fully net-zero solar home, you will still pay the monthly base charge and any minimum fees.
Texas electricity plans are notoriously complex. Always read the EFL (Electricity Facts Label) — a standardized document every REP must provide. Watch for these common traps.
Rate advertised is only valid at 2,000 kWh/month
Check the EFL (Electricity Facts Label) for rates at 500, 1,000, and 2,000 kWh. Most solar homes use 400–800 kWh/month net (after solar). The advertised rate may not apply to you.
No early termination fee disclosed upfront
ETFs range from $50 to $300. Always ask before signing. Check the Terms of Service.
Buyback rate is "market rate" or "wholesale"
ERCOT wholesale rates average 3–6¢/kWh — far below the 13–16¢ retail rate. A 1:1 buyback plan is worth 2–4× more than a wholesale buyback plan.
Base charge buried in the EFL
A $9.95/month base charge adds $0.99¢/kWh at 1,000 kWh usage. This cost appears in the all-in rate on the EFL but is often buried in marketing materials.
Minimum usage fee
Some plans charge you if you use under 500 or 1,000 kWh/month. Solar homes often fall under these minimums in spring/fall. The fee can erase all buyback savings.
Variable "introductory" rate
A plan advertised at 9¢ that is variable can legally spike to 30¢+ within months. Always confirm whether your rate is fixed or variable.
The best electricity "plan" is generating your own. NuWatt's Propel financing lets you go solar with $0 down — a third-party owner installs FEOC-compliant Silfab 440W panels and claims the 40% Section 48E ITC, then passes the savings through as a fixed monthly payment you can lock in for 25 years. An 8 kW system at $2.90/W ($23,200) becomes ~$13,920 effective cost at ~$117/month — cheaper than what most Texas REPs charge for 800 kWh/month. 8.99% APR, 660 FICO minimum. Must begin construction before July 4, 2026.
See Propel Financing DetailsThe best long-term strategy is to generate your own electricity and reduce what you buy from any REP. Texas's strong solar resource (5.5–6.5 peak sun hours/day) means systems typically pay for themselves in 9–13 years — even without the federal tax credit that expired in 2025.
100%
of added home value
TX property tax exemption
$0
sales tax on equipment
TX sales tax exemption
9–13 yrs
TX average, no federal ITC
Avg. payback period
For solar homeowners, TXU Solar Buyback offers the strongest 1:1 retail credit rate in Oncor territory, meaning you get full retail value for every kWh you export. Green Mountain Solar Buyback is the best 100% renewable option with competitive buyback rates. Chariot Solar Buyback offers competitive flat rates in multiple TDU territories. The right plan depends on your TDU territory (Oncor, CenterPoint, AEP, or TNMP) and how much solar you export.
No. Texas has no statewide net metering mandate. In the deregulated ERCOT market (85% of the state), solar export credits depend entirely on your Retail Electric Provider. Some REPs offer 1:1 retail credit (best), others pay wholesale rates (4–6¢/kWh), and some pay nothing. Always ask for the buyback rate in writing before signing.
A TDU (Transmission and Distribution Utility) owns the poles, wires, and meters in your area. You cannot choose your TDU — it is determined by your address. The four main TDUs are Oncor (DFW), CenterPoint (Houston), AEP Texas (West/South), and TNMP (rural). A REP (Retail Electric Provider) is the company that buys electricity and sells it to you. You can freely switch REPs at any time. Your TDU delivery charge appears on every bill regardless of which REP you choose.
Switching REPs in Texas is free and easy. Visit PowerToChoose.org (the state-run comparison tool) or shop directly with REPs. Provide your address and ESID (Electric Service Identifier) from your current bill. The new REP handles the switch — no service interruption, same physical wires, same TDU. Timing: switches typically happen within 1–3 business days for most plans.
Common hidden fees: (1) Base charge: $5–$10/month flat fee regardless of usage. (2) TDU pass-through: legitimate delivery charge, not hidden, but adds 4–7¢/kWh. (3) Early termination fee: $50–$300 for leaving before contract ends. (4) Minimum usage fee: plans that charge extra if you use under 500 or 1,000 kWh/month. (5) Teaser rates: plans advertised at 8¢/kWh but only if you use 2,000 kWh/month. Always read the Electricity Facts Label (EFL).
The cheapest plans in Texas range from 10–14¢/kWh all-in (energy + TDU delivery) for standard fixed-rate plans at average usage (1,000 kWh/month). Rates vary significantly by TDU territory, contract length, and credit score. Avoid variable-rate plans, which can spike to 30¢+ during ERCOT scarcity events (as seen in Winter Storm Uri). Compare at PowerToChoose.org using the 500 kWh/1,000 kWh/2,000 kWh average price columns on the EFL.
Yes, solar remains a solid investment in Texas in 2026 despite the expiration of the residential 25D tax credit on December 31, 2025. Texas has a strong solar resource (5.5–6.5 peak sun hours/day), full property tax exemption on added home value (TX Tax Code §11.27), sales tax exemption on equipment, and solar buyback plans that can significantly reduce bills. Payback is typically 9–13 years depending on your REP buyback rate, system size, and usage.
Free nights (typically 9pm–6am) and free weekends plans offer $0 energy charges during off-peak hours, with higher rates during daytime. For EV owners who charge overnight, this can produce significant savings. For solar homeowners, these plans are usually unfavorable — your panels generate power during daytime when rates are highest, but you may export at $0 or near-$0. Evaluate carefully based on your usage pattern.