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Get a Free QuoteTexas is the only major solar market with a fully deregulated electricity structure. Your commercial solar value depends on which TDU delivers your power, which REP you choose for buyback, and whether you are in ERCOT or a municipal utility. This calculator breaks down the economics by territory.
TX Avg Commercial
$0.098/kWh
Lowest in US
REP Buyback Range
3-16.9¢
17 plans available
Austin Energy VoS
9.91¢/kWh
Guaranteed rate
Demand Charges
$6-$15/kW
Reducible with solar
The value of commercial solar in Texas depends on your territory and REP. In ERCOT deregulated areas (85% of TX), commercial solar is worth $0.07-$0.11/kWh in self-consumption value plus 3-16.9 cents/kWh for excess export depending on your REP buyback plan. Demand charge reduction adds $700-$2,250/month for mid-to-large commercial systems. In Austin Energy territory, the Value of Solar tariff guarantees 9.91 cents/kWh for all production. CPS Energy (San Antonio) credits export at only 3-4 cents/kWh avoided cost. The optimal strategy differs by territory: maximize self-consumption in CPS territory, and optimize REP buyback selection in ERCOT territories.
Texas operates under a unique deregulated electricity market structure that fundamentally changes how commercial solar interacts with the grid compared to every other state. Understanding this structure is essential for maximizing your commercial solar ROI.
In 85% of Texas (the ERCOT territory), the grid is split into two separate businesses. The Transmission and Distribution Utility (TDU) — Oncor, CenterPoint, AEP Texas, or TNMP — owns the power lines, transformers, and meters. They handle interconnection for solar systems, set delivery charges, and manage demand charges. The Retail Electric Provider (REP) — TXU, Green Mountain, Chariot, Rhythm, and dozens more — purchases wholesale electricity from ERCOT and sells it to you at a retail markup. They set your supply rate and, critically, your solar buyback rate.
This dual structure creates both opportunity and complexity. The opportunity: you can shop among 17+ REP solar buyback plans to get the best rate for excess solar production. The complexity: Texas has no statewide net metering law, so each REP sets its own buyback terms. Some REPs credit at full retail rate (effective net metering), while others credit as low as 3 cents/kWh. Your choice of REP can swing your solar ROI by thousands of dollars per year.
$0.028-$0.045/kWh delivery charge + $7-$15/kW demand charge. Fixed by territory. Same regardless of REP.
$0.04-$0.07/kWh supply charge. Competitive — shop REPs. This is where buyback rate is negotiated.
3-16.9 cents/kWh for excess export. Varies dramatically by REP plan. No statewide net metering.
Your TDU territory determines your delivery charges, demand charge structure, and interconnection process. While you cannot choose your TDU (it is determined by your physical location), understanding the differences helps you model commercial solar ROI accurately.
Dallas-Fort Worth, Waco, Midland-Odessa, Abilene | 37% of ERCOT load
Commercial Rate
$0.08-$0.11/kWh
Demand Charge
$8-$15/kW
Delivery Charge
$0.035-$0.045/kWh
Service area: Largest TDU in Texas. Covers DFW metroplex, Central TX, and parts of West TX.
Solar advantage: Largest commercial rooftop opportunity. 37% of ERCOT means the most REP competition for buyback rates. Midland-Odessa area may qualify for energy community ITC bonus (+10%).
Greater Houston, Galveston, The Woodlands, Conroe | 25% of ERCOT load
Commercial Rate
$0.07-$0.10/kWh
Demand Charge
$7-$14/kW
Delivery Charge
$0.030-$0.042/kWh
Service area: Serves the Houston metro area. Second largest TDU.
Solar advantage: Houston commercial market is massive. Hurricane zone requires impact-resistant equipment. Gulf Coast humidity and hail require durable panel selection. Slightly lower rates offset by high AC-driven demand charges.
Corpus Christi, McAllen, Laredo, Victoria | 10% of ERCOT load
Commercial Rate
$0.07-$0.10/kWh
Demand Charge
$7-$12/kW
Delivery Charge
$0.028-$0.038/kWh
Service area: South Texas and parts of the Rio Grande Valley.
Solar advantage: Highest solar irradiance in the state (1,600-1,700 kWh/kW/year). Lowest installation costs due to flat terrain. Some of the best commercial solar economics in ERCOT despite moderate electricity rates.
Parts of DFW suburbs, Temple, Galveston suburbs | 3% of ERCOT load
Commercial Rate
$0.08-$0.11/kWh
Demand Charge
$8-$13/kW
Delivery Charge
$0.032-$0.040/kWh
Service area: Smallest of the four major TDUs. Scattered service territory.
Solar advantage: Fewer REP options than Oncor or CenterPoint but still deregulated. Good solar economics in the DFW-adjacent areas. Temple area has excellent irradiance.
Austin and San Antonio operate outside the deregulated ERCOT retail market. Their municipal utilities set their own commercial rates, solar programs, and buyback structures. The differences are dramatic.
Commercial Rate
$0.06-$0.09/kWh
Solar Program
Value of Solar (VoS) Tariff
Buyback/Credit Rate
9.91 cents/kWh (2026 VoS rate)
Rebate
$2,500 commercial rebate
Austin Energy uses the Value of Solar (VoS) tariff — not net metering. Your solar production is credited at the VoS rate (9.91 cents/kWh in 2026) regardless of when you produce. The VoS is recalculated annually based on the utility cost of acquiring equivalent solar. This is among the highest guaranteed buyback rates in Texas.
Commercial Rate
$0.07-$0.10/kWh
Solar Program
Distributed Generation
Buyback/Credit Rate
3-4 cents/kWh (avoided cost)
CPS Energy credits excess solar at avoided cost (3-4 cents/kWh), which is significantly below the retail rate. This means commercial systems should be sized for maximum self-consumption rather than export. Battery storage for load shifting is particularly valuable in CPS territory.
A 200 kW commercial system exporting 50% of production (155 MWh) earns dramatically different export revenue. In Austin Energy territory at 9.91 cents/kWh VoS: $15,361/year. In CPS Energy territory at 3.5 cents/kWh avoided cost: $5,425/year. That is a $9,936/year difference — nearly $250,000 over 25 years. CPS Energy commercial systems should be sized for near-100% self-consumption, while Austin Energy systems can afford to oversize.
In ERCOT deregulated territory, your REP determines what you get paid for excess solar production. These 8 plans represent the range of options available in 2026. Rates change frequently — verify current availability before signing.
| REP | Plan | Buyback Rate | Territory | Notes |
|---|---|---|---|---|
| TXU Energy | Solar Buyback 24 | 7.2 cents/kWh | Oncor, CenterPoint, AEP | Competitive fixed rate. Good for larger systems with significant export. |
| Chariot Energy | Solar 12 | Retail match (100%) | Oncor | Credits excess at full retail rate — effectively net metering. Oncor territory only. |
| Green Mountain Energy | Pollution Free Solar Sellback | 9.1 cents/kWh | Oncor, CenterPoint, AEP, TNMP | Available across all TDUs. Strong rate for a fixed export plan. |
| Rhythm Energy | Solar Buyback | 10.0 cents/kWh | Oncor, CenterPoint | One of the highest fixed export rates available. Competitive supply rate. |
| Pulse Power | Solar Sellback 36 | 16.9 cents/kWh | Oncor, CenterPoint | Highest fixed export rate in TX. 36-month lock. Verify current availability. |
| Gexa Energy | Solar Flex | 8.5 cents/kWh | Oncor, CenterPoint, AEP | Flexible term. Mid-range buyback rate with competitive supply pricing. |
| MP2 Energy | Solar Export | 5.0 cents/kWh | All TDUs | Lower export rate but among the lowest supply rates. Good for high self-consumption systems. |
| Frontier Utilities | Sunny Days | 3.0 cents/kWh | Oncor, CenterPoint | Low export rate. Only valuable if supply rate is significantly below market. |
The published solar buyback plans above are designed for residential customers. Commercial customers with 100+ kW demand should negotiate custom solar export terms directly into their commercial REP contract. Large commercial accounts have leverage — REPs want your supply business and may offer premium export rates (8-12 cents/kWh) to win your account. Your energy broker or solar installer can facilitate this negotiation. The key is to specify: export rate, crediting methodology, minimum/maximum export volumes, and term length.
For many Texas commercial customers, demand charges represent 30-50% of the total electricity bill — yet they are frequently overlooked in solar ROI calculations. Demand charges are based on your highest 15-minute peak power draw in each billing cycle, measured in kilowatts (kW). Your TDU sets these rates.
Solar directly reduces demand charges by offsetting daytime peak consumption. A 200 kW commercial solar array on an office building or warehouse can reduce measured peak demand by 100-150 kW during sunny hours. At $10/kW in demand charges, that is $1,000-$1,500/month in savings — $12,000-$18,000/year — on top of the kWh energy savings.
Texas also has the ERCOT 4CP (Four Coincident Peak) demand charge mechanism. ERCOT measures your peak demand during the four highest system-wide peak events each summer (typically June-September, 3-5 PM). Your 4CP demand determines your share of ERCOT transmission costs for the following year. Reducing your load during these four 15-minute windows can save $2-$5/kW/month in transmission charges. Solar + battery combinations are particularly effective at targeting 4CP events because the peaks are predictable.
| TDU Territory | Demand Rate | Est. Peak Reduction | Monthly Savings | Annual Savings |
|---|---|---|---|---|
| Oncor (DFW) | $8-$15/kW | 120 kW | $960-$1,800 | $11,520-$21,600 |
| CenterPoint (Houston) | $7-$14/kW | 110 kW | $770-$1,540 | $9,240-$18,480 |
| AEP Texas (South) | $7-$12/kW | 130 kW | $910-$1,560 | $10,920-$18,720 |
| TNMP | $8-$13/kW | 115 kW | $920-$1,495 | $11,040-$17,940 |
ERCOT operates as a wholesale energy market with real-time pricing that varies by zone. While most commercial customers buy at fixed retail rates, the underlying wholesale price dynamics affect REP economics and, increasingly, the value of solar production at different times of day. Understanding zone pricing helps you evaluate the long-term value of your commercial solar investment.
Avg Wholesale
$0.045-$0.065/kWh
Peak Premium
2-5x during summer peaks
Solar Value
High daytime value, moderate summer premium
Avg Wholesale
$0.040-$0.060/kWh
Peak Premium
3-8x during heat waves
Solar Value
Strong AC-driven peak alignment with solar production
Avg Wholesale
$0.035-$0.055/kWh
Peak Premium
2-4x during peaks
Solar Value
Lowest wholesale but highest production (1,600+ kWh/kW)
Avg Wholesale
$0.025-$0.045/kWh
Peak Premium
2-3x during peaks
Solar Value
Lowest wholesale prices due to wind/solar saturation. Energy community bonus.
ERCOT wholesale prices can spike to $1-$9 per kWh during extreme demand events — compared to normal wholesale prices of $0.03-$0.07/kWh. Winter Storm Uri (2021) and summer 2023 heat waves demonstrated this volatility. While most commercial customers are insulated by fixed-rate REP contracts, the ERCOT Distributed Resource Registration System (DRRS) launching in 2026 may enable commercial solar + battery systems to participate directly in these wholesale markets, creating potential for extraordinary short-term revenue during price spike events.
The optimal system size depends heavily on your buyback rate. In territories with strong buyback (Austin Energy VoS, high-rate REP plans), you can afford to oversize. In territories with weak buyback (CPS Energy, low-rate REPs), sizing for self-consumption maximizes ROI.
Complete commercial solar guide: ITC, MACRS, financing, and ROI for Texas businesses.
Deep dive into how ERCOT deregulation affects residential and commercial solar in Texas.
Complete guide to solar buyback plans from Texas REPs, with rates and territory availability.
Current solar buyback rates from all Texas REPs, updated monthly.
Why Texas does not have net metering and what alternatives exist for commercial solar.
In Texas, 85% of the state operates under ERCOT deregulation. This means the Transmission and Distribution Utility (TDU) — Oncor, CenterPoint, AEP, or TNMP — delivers power, but a Retail Electric Provider (REP) sets your supply rate. For commercial solar, this means: (1) you shop REPs for the best solar buyback rate on excess power, (2) delivery charges from the TDU are fixed regardless of REP, (3) demand charges are set by the TDU and can be reduced with solar, and (4) there is no statewide net metering law — each REP sets its own buyback terms. The remaining 15% of Texas (Austin, San Antonio, co-ops) operates under regulated municipal utilities with their own solar programs.
Our team will analyze your TDU territory, recommend the best REP buyback plan, and model your commercial solar savings with demand charge reduction.