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In Texas's deregulated ERCOT market, your choice of Retail Electric Provider can make or break your commercial solar ROI. Buyback rates range from 3¢ to 16.9¢/kWh — a 5.6x difference that translates to tens of thousands of dollars annually. This guide covers every REP, contract strategy, and switching tactic for commercial solar.
Best Buyback
16.9¢
Rhythm Solar Buyback
Fixed Rate
8.9¢
TXU SolarSpree
Commercial Negotiated
6-9¢
Constellation / Direct
REPs Compared
7
Full buyback matrix
In Texas's deregulated ERCOT market, choosing the right Retail Electric Provider (REP) can make or break commercial solar ROI. Solar buyback rates range from 3 cents to 16.9 cents/kWh depending on your REP choice — a 5.6x difference. For high-export systems (>50% exported), Rhythm Energy (16.9 cents/kWh) or Green Mountain (retail-match) maximizes value. For predictable economics, TXU SolarSpree offers 8.9 cents/kWh fixed. Large commercial accounts (>100 kW) should negotiate custom rates with Constellation, Direct Energy, or Reliant (6-9 cents/kWh). TDU delivery charges are pass-through and identical regardless of REP — focus on the energy rate, buyback rate, demand charge structure, and contract terms. Municipal utility customers (Austin Energy, CPS Energy) cannot choose a REP.
Texas is the only major U.S. solar market with a fully deregulated retail electricity system. In ERCOT territory — which serves approximately 85% of the state's electricity load — there is no mandated net metering. Instead, your Retail Electric Provider (REP) voluntarily sets the buyback rate for excess solar electricity you export to the grid. This creates a remarkable situation: the same commercial solar installation can earn anywhere from $3,000 to $16,900 per year in buyback credits depending solely on which REP you choose.
Unlike states with standardized net metering (where 1 kWh exported = 1 kWh credited at retail), Texas's deregulated market means you are essentially shopping for a solar export buyeralongside shopping for an electricity supplier. The best REPs for solar — like Rhythm Energy at 16.9¢/kWh and Green Mountain at retail-match — offer buyback rates that effectively replicate 1:1 net metering. The worst offer as little as 3-5¢/kWh, making exports worth only a fraction of the retail price.
For commercial properties, the stakes are even higher. A 200 kW commercial solar system in Dallas might export 150,000-250,000 kWh per year. At 16.9¢/kWh buyback (Rhythm), that's $25,350-$42,250 in annual export credits. At 5¢/kWh (a poorly negotiated commercial plan), the same exports earn only $7,500-$12,500. Over a 25-year system life, this REP decision alone represents a $400,000+ difference in lifetime value.
If your commercial property is served by a municipal utility (Austin Energy, CPS Energy, Bryan Texas Utilities) or an electric cooperative (Pedernales, CoServ, GVEC), you cannot choose a REP. Your solar compensation is set by the utility. Austin Energy's Value of Solar pays 9.91¢/kWh — competitive with the best REP plans. CPS Energy pays only 3-4¢/kWh avoided cost. Check your TDU to determine if you're in a deregulated area.
Below is a comprehensive comparison of every major REP offering solar buyback for commercial properties in Texas. Rates are current as of Q2 2026 and subject to change. For commercial accounts above 100 kW, contact REPs directly for negotiated pricing.
| REP | Buyback Rate | Energy Rate | Term | ETF | Commercial | TDU Areas |
|---|---|---|---|---|---|---|
Rhythm Energy Solar Energy Buyback | 16.9¢/kWh Retail-match | 16.9¢/kWh | 12 months | $0 (no ETF) | Yes (residential & small commercial) | Oncor, CenterPoint, AEP Texas, TNMP |
Green Mountain Energy Solar Buyback | Retail-match Retail-match | Varies by plan (10-14¢/kWh) | 12-24 months | $150-$250 | Yes (with size restrictions) | Oncor, CenterPoint, AEP Texas, TNMP |
TXU Energy SolarSpree | 8.9¢/kWh Fixed buyback | 11.5-13.5¢/kWh (varies) | 12-24 months | $150 | Yes (small to mid-size commercial) | Oncor, CenterPoint, AEP Texas, TNMP |
Chariot Energy Solar Buyback | 8.5¢/kWh Retail-match | 8.5¢/kWh | 12 months | $0 (no ETF) | Limited (primarily residential) | Oncor, CenterPoint, AEP Texas, TNMP |
Constellation Energy Custom Commercial Solar | 6.0-9.0¢/kWh Negotiated | Custom negotiated | 24-60 months | Contract-specific | Yes (primary market) | All ERCOT deregulated areas |
Direct Energy Solar Buyback Add-on | 5.0-8.0¢/kWh Negotiated | Custom negotiated | 24-36 months | Contract-specific | Yes (add-on to commercial plans) | All ERCOT deregulated areas |
Reliant Energy Solar Sellback | 5.0-7.5¢/kWh Negotiated | Custom negotiated | 12-36 months | Contract-specific (up to $500) | Yes (Houston-focused) | CenterPoint (primary), Oncor |
Solar Energy Buyback
Retail-match
Highest buyback rate available in TX. 100% renewable. Monthly net billing credits at same rate as consumption. Effectively functions like 1:1 net metering. No early termination fee makes it low-risk.
Solar Buyback
Retail-match
Credits excess solar at the same retail rate you pay. One of the oldest solar buyback programs in TX. Commercial availability depends on system size and account type. 100% renewable energy sourced.
SolarSpree
Fixed buyback
Fixed buyback rate regardless of consumption rate. Major REP with strong commercial account support. Reliable billing and customer service infrastructure. Good for businesses with predictable solar production but higher consumption rates.
Solar Buyback
Retail-match
Community solar provider with direct buyback. 100% solar energy plan. Lower rate but matching buyback creates predictable economics. No ETF like Rhythm. Limited large commercial support.
Custom Commercial Solar
Negotiated
Major commercial REP with dedicated account managers. Buyback rates negotiated as part of comprehensive commercial supply contracts. Rates depend on system size, production profile, load factor, and term length. Can include demand charge optimization.
Solar Buyback Add-on
Negotiated
Solar buyback offered as an add-on to existing commercial electricity plans. Buyback rates are negotiable for larger commercial accounts. Owned by NRG Energy, giving access to broader energy management solutions.
Solar Sellback
Negotiated
Houston-area focused with strong CenterPoint territory presence. Solar sellback rate depends on contract terms and generation capacity. Commercial negotiation available for 100+ kW systems. Part of NRG family.
Rates shown are based on published plans and typical commercial negotiated rates as of Q2 2026. REPs frequently update their plan offerings, and rates may differ based on your specific TDU territory, consumption volume, demand profile, and contract term. Always verify current rates directly with the REP before making a decision. Large commercial accounts (>100 kW) should request custom quotes.
The right REP depends on your commercial solar export ratio, system size, and utility territory. Use this framework to match your business profile to the optimal REP strategy. The export ratio — the percentage of your solar production that goes to the grid rather than being consumed on-site — is the single most important variable in REP selection.
When more than half your solar production goes to the grid, the buyback rate is the dominant factor in ROI. Rhythm at 16.9¢/kWh or Green Mountain at retail-match maximizes the value of every exported kWh. At 16.9¢/kWh buyback, a system exporting 100,000 kWh/year earns $16,900 in credits vs. only $8,900 with TXU or $5,000-$7,500 with Reliant.
With a mix of self-consumption and export, predictability matters more than chasing the highest buyback. TXU at 8.9¢/kWh fixed provides stable economics regardless of rate changes. Chariot at 8.5¢/kWh with no ETF offers flexibility. The fixed rate means your financial model is reliable.
When 80%+ of your solar is self-consumed, the buyback rate has minimal impact on total economics. Choose the REP with the lowest consumption rate and best demand charge structure. A 1¢/kWh lower consumption rate on 500,000 kWh saves $5,000/year — far more than a higher buyback on the small export volume.
Large commercial accounts have significant leverage for negotiating both consumption and buyback rates. A 500 kW demand account consuming 2+ million kWh/year can negotiate buyback rates 1-3¢/kWh above published rates. Include solar rider provisions, demand charge optimization, and 4CP management in the contract.
If your property is served by Austin Energy, CPS Energy, or an electric co-op, you cannot choose a REP. Austin Energy's Value of Solar (VoS) at 9.91¢/kWh is the best municipal rate in TX. CPS Energy pays only 3-4¢/kWh — size strictly for self-consumption. Contact your municipal utility for commercial solar interconnection requirements.
Transmission and Distribution Utility (TDU) charges are pass-through costs that appear on your electricity bill regardless of which REP you choose. They cover the physical infrastructure — power lines, transformers, substations, and meters — that delivers electricity to your property. While you cannot choose your TDU (it's determined by your physical location), understanding these charges is essential for accurate commercial solar financial modeling.
Critically, solar reduces your TDU chargesin two ways: (1) lowering kWh delivery charges by reducing grid consumption, and (2) reducing your 4CP demand allocation — the mechanism ERCOT uses to assign transmission costs based on peak demand during the four hottest months. For large commercial customers, 4CP avoidance alone can save $10,000-$25,000+ per year.
DFW metroplex, North/Central TX (largest TDU)
$3.40-$4.10/kW demand + $0.035-$0.042/kWh delivery
High — Oncor territory has the largest ERCOT load share. 4CP avoidance savings can reach $15,000-$25,000+/year for large commercial.
Solar reduces both delivery kWh charges and 4CP allocation. Peak production (2-5 PM) aligns well with summer 4CP windows.
Oncor serves ~3.7 million meters. Largest TDU in ERCOT. Delivery charges are pass-through regardless of REP choice.
Houston metro, Gulf Coast
$3.10-$3.80/kW demand + $0.038-$0.044/kWh delivery
High — Houston industrial load creates significant 4CP exposure. Gulf Coast humidity can reduce solar output during peak periods.
Solar provides strong 4CP avoidance, but cloud cover and humidity require conservative production estimates during peak events.
CenterPoint serves ~2.8 million meters. Houston area has high cooling loads that align with solar production.
South TX, West TX, Rio Grande Valley, Corpus Christi
$2.80-$3.50/kW demand + $0.032-$0.040/kWh delivery
Moderate — smaller load share than Oncor/CenterPoint. Some of the best solar irradiance in TX (5.5-6.0 kWh/m²/day).
Exceptional solar resource. Higher capacity factors mean more kWh per installed kW. Lower delivery rates partially offset by excellent solar economics.
AEP Texas serves ~1 million meters. West TX has the highest solar irradiance in the state.
Scattered service areas: parts of DFW suburbs, Gulf Coast, Central TX
$3.20-$3.90/kW demand + $0.036-$0.043/kWh delivery
Lower — smaller overall load share means less 4CP exposure per customer, but individual savings still significant for large commercial.
Standard solar impact. TNMP territory overlaps with several good solar resource areas.
TNMP serves ~270,000 meters. Smallest major TDU in ERCOT. Now owned by PNM Resources.
When comparing REP plans, remember that TDU delivery charges are identical across all REPs in the same territory. A property in Oncor territory pays the same TDU charges whether using Rhythm, TXU, or Constellation. Focus your REP comparison on the energy rate, buyback rate, demand charges, and contract terms — these are the variables that differ between REPs.
Commercial electricity contracts in Texas are negotiable — unlike residential plans with fixed published rates. Your solar installation gives you additional leverage because REPs value solar-producing customers (less wholesale market exposure, improved portfolio mix). Here are six contract strategies that can save your business thousands per year.
Fixed-rate contracts provide predictable economics for solar ROI modeling. In the current ERCOT market with wholesale prices trending upward, locking in a 24-36 month fixed rate protects against rising consumption costs while securing a known buyback rate. Variable rates can benefit businesses that can shift load to off-peak hours but introduce unpredictability into solar financial models. For commercial solar installations with 7-12 year payback periods, rate certainty matters more than chasing the lowest spot rate.
Negotiate escalator clauses that increase your buyback rate over the contract term, matching or tracking wholesale price trends. A 2-3% annual escalator on a 36-month contract can add $1,000-$5,000 in additional annual buyback value for mid-size commercial systems. Some REPs will agree to ERCOT wholesale price indexing for the buyback rate, which provides upside during high-price periods while maintaining a floor rate.
Demand charges ($7-$15/kW/month) often represent 30-50% of a commercial electricity bill in Texas. Different REPs structure demand charges differently — some use billing demand (highest 15-min reading), others use coincident peak demand, and some offer ratcheted demand with seasonal adjustments. Solar paired with battery storage can reduce peak demand by 50-80%, saving $8,400-$18,000/year per 100 kW of demand reduction. Compare demand charge structures across REPs, not just energy rates.
Some REP commercial plans include minimum usage requirements (e.g., 1,000+ kWh/month) or minimum demand levels. If your solar system significantly reduces grid consumption, you could fall below these thresholds, triggering higher per-kWh rates or penalty charges. Verify that your post-solar grid consumption will still meet minimum requirements. Some solar-specific plans waive these minimums, but always confirm in writing before signing.
ETFs range from $0 (Rhythm, Chariot) to $500+ (some Reliant commercial plans). For commercial accounts, ETFs can be calculated per kWh remaining on the contract — potentially reaching $5,000-$20,000 for large accounts mid-contract. Negotiate ETF caps, pro-ration schedules, or solar-related waiver provisions. Some REPs will waive ETFs if you switch to their solar-specific plan. Always calculate the total ETF risk before signing a long-term contract.
12-month contracts maximize flexibility but often carry higher per-kWh rates (1-2¢/kWh premium). 24-month contracts balance rate savings with reasonable commitment — typically the sweet spot for commercial solar customers. 36-month contracts offer the lowest rates but lock you into a REP as your solar production and consumption patterns evolve. For new solar installations, consider a 12-month contract first to establish your export/consumption ratio, then negotiate a longer-term deal with data-backed rate requests.
Texas has a robust energy brokerage market. Commercial energy brokers can solicit competitive bids from 10-20+ REPs simultaneously, including unpublished commercial solar rates. Brokers are typically compensated by the REP (no cost to you) and can secure buyback rates 1-3¢/kWh above what you'd get negotiating directly. For commercial solar systems above 100 kW, a broker can save $5,000-$15,000/year in better rate terms.
Switching REPs in Texas is straightforward and does not require any physical changes to your electrical infrastructure. Your solar panels, inverter, bidirectional meter, and TDU wires remain exactly the same. Only the company billing you for electricity changes. Here is the complete process for commercial solar customers.
60-90 days before contract end
Check your existing REP contract for the term end date, early termination fee (ETF), and any auto-renewal clauses. Most Texas commercial contracts auto-renew into month-to-month at a higher rate if you do not actively choose a new plan. Set a calendar reminder 60-90 days before your contract expires.
Pitfall to avoid: Missing the renewal window and getting locked into auto-renewal at 15-20¢/kWh for one month.
30-60 days before switch
Use Power to Choose (powertochoose.org) and direct REP websites to compare solar buyback rates, consumption rates, demand charge structures, and contract terms. For commercial accounts over 100 kW, contact REP commercial sales teams directly — published rates are usually for residential and small commercial. Request at least 3 competitive bids.
Pitfall to avoid: Only comparing buyback rates without considering total plan cost, demand charges, and TDU pass-through differences.
1-2 billing cycles for switch to take effect
Complete enrollment online or through the REP’s commercial sales team. You’ll need your ESI-ID (Electric Service Identifier — found on your current bill), business information, and authorization. The new REP files a switch request with ERCOT. No physical work is required — you keep the same meter, wires, and TDU.
Pitfall to avoid: Starting enrollment too late and having a gap between old and new contracts.
Confirm within first billing cycle
Switching REPs does NOT affect your solar interconnection agreement. Your interconnection is with the TDU (Oncor, CenterPoint, AEP, or TNMP), not the REP. Your bidirectional meter and solar generation equipment remain connected and producing. However, confirm with your new REP that they have your solar generation on file and will apply buyback credits correctly from day one.
Pitfall to avoid: Not verifying that the new REP has correctly set up solar buyback crediting, resulting in lost export value for 1-2 months.
First 1-2 billing cycles
Review your first bill from the new REP carefully. Verify that solar export kWh are being credited at the agreed buyback rate, demand charges are calculated correctly, and TDU delivery charges are passing through accurately. Compare the bill to your pre-switch estimates. If buyback credits are missing or incorrect, contact the REP immediately — credits can be retroactively applied.
Pitfall to avoid: Assuming the first bill is correct without verifying solar buyback credits are applied properly.
Your solar interconnection agreement is between you and your TDU (Oncor, CenterPoint, AEP, or TNMP) — not your REP. When you switch REPs, the TDU continues to read your bidirectional meter and report both consumption and generation data. The new REP receives this data and applies their buyback rate to your exports. There is no need to re-apply for interconnection, no inspections, and no downtime for your solar system.
The optimal time to switch is at the end of your current contract term, avoiding early termination fees. For commercial solar, there are two strategic windows: (1) 30-60 days before contract expiration — this gives you time to compare plans and complete enrollment before auto-renewal kicks in, and (2) after 12 months of solar production data— real production data gives you leverage to negotiate better buyback rates based on actual export volumes rather than estimates.
Complete guide: ITC stacking, MACRS, ERCOT commercial rates, pricing, and ROI analysis.
Deep dive into buyback mechanics, self-consumption optimization, and municipal utility programs.
How ERCOT deregulation affects solar economics, REP choice, and demand charges.
Calculate your energy savings by metro, TDU, and REP plan with real-time rate data.
A Retail Electric Provider (REP) is the company that sells you electricity in the ERCOT deregulated market, which covers approximately 85% of Texas. Unlike vertically integrated utilities in most states, Texas separates electricity generation, transmission (TDU), and retail sales (REP). For commercial solar, your REP determines your solar buyback rate — the price you receive for excess solar electricity exported to the grid. Buyback rates vary enormously between REPs: from 5¢/kWh (Reliant) to 16.9¢/kWh (Rhythm Energy). Choosing the right REP can mean the difference between $5,000 and $16,900 in annual buyback credits for a system exporting 100,000 kWh/year. This makes REP selection one of the most impactful financial decisions for commercial solar in Texas.
We analyze your load profile, export ratio, and utility territory to recommend the optimal REP and negotiate the best buyback rates for your commercial solar installation.