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Texas has no mandatory net metering. The deregulated ERCOT market means your Retail Electric Provider (REP) sets the rules — not the state. Instead of net metering, Texas has “solar buyback plans” with rates from 3 cents to retail-match. Here is how it works and how to get the best deal.
TX is different: Most states mandate 1:1 net metering. Texas does not. In the deregulated ERCOT market (~85% of TX), your REP chooses whether to offer solar credits and at what rate. Austin Energy and El Paso Electric have their own separate systems.
To understand why Texas lacks net metering, you need to understand ERCOT and deregulation. Texas is fundamentally different from every other state.
Texas deregulated its electricity market in 2002. About 85% of the state is served by ERCOT, where the generation and retail functions are separated from delivery.
Delivery utilities (Oncor, CenterPoint, AEP Texas, TNMP) own the wires and poles. They deliver power but do not sell it to you.
Retail Electric Providers (REPs) like TXU, Green Mountain, Chariot, and dozens of others compete for your business. They set your rates, billing, and solar buyback terms.
Because REPs are competitive private companies, the state cannot mandate that they offer 1:1 net metering. Each REP decides whether to offer a solar buyback plan and at what rate.
When your solar panels produce more electricity than you use, the excess flows back to the grid. Your bidirectional meter tracks both imports and exports.
In a traditional net metering state: Your excess kWh offsets future consumption 1:1. One kWh exported equals one kWh of credit.
In Texas: Your REP decides the value of exported kWh. It could be 3 cents/kWh (Gexa), 8.5 cents/kWh (Green Mountain), retail-match (TXU), or ERCOT wholesale (Rhythm). The rate varies by plan and is specified in your contract.
This means your REP choice is as important as your solar panel choice. The wrong REP could cost you thousands over the life of your system.
Austin Energy and CPS Energy are municipal utilities — they are NOT deregulated and NOT part of the REP system. Austin Energy uses a Value of Solar tariff (9.91 cents/kWh). CPS Energy credits exports at avoided cost (~3-4 cents/kWh). El Paso Electric is a regulated utility on the Western Interconnection (NOT ERCOT) with its own net metering policy. If you are in one of these service areas, you do not choose a REP and the buyback table below does not apply to you.
Every REP solar buyback plan in the deregulated ERCOT market, ranked by export credit rate. Check which plans serve your delivery utility territory.
| REP | Plan | Buyback Rate | Type | Term | Rollover |
|---|---|---|---|---|---|
| TXU EnergyTop | Solar Buyback 12/24 | Retail-Match | Fixed | 12 or 24 mo | Yes |
| Green MountainTop | Pollution Free Solar 36 | 8.5¢ | Fixed | 36 mo | Yes |
| Chariot Energy | Solar Buyback 24 | 7.0¢ | Fixed | 24 mo | Yes |
| Constellation | Solar Buyback 12 | 6.5¢ | Fixed | 12 mo | Yes |
| Shell Energy | Solar Buyback 24 | 6.0¢ | Fixed | 24 mo | Yes |
| MP2 Energy | Solar Buyback 24 | 6.0¢ | Fixed | 24 mo | Yes |
| Pulse Power | Solar Buyback 12 | 5.5¢ | Fixed | 12 mo | No |
| Frontier Utilities | Solar Saver | 5.0¢ | Fixed | 12 mo | No |
| Gexa Energy | Solar Buyback 12 | 3.0¢ | Fixed | 12 mo | No |
| Rhythm Energy | Solar Buyback | Wholesale | Variable | Month-to-month | No |
Rates as of February 2026. Plans and rates change frequently. Verify current rates on the PUCT Power to Choose marketplace or directly with the REP. Early termination fees may apply for contract plans.
If your system produces more than you use, prioritize the highest buyback rate. TXU retail-match or Green Mountain 8.5 cents/kWh maximize the value of every exported kWh.
If your system matches your usage closely, the buyback rate matters less than the base consumption rate. A plan with a low base rate and moderate buyback (Gexa, Frontier) may save more overall.
Rhythm Energy's ERCOT wholesale plan can spike to over $1/kWh during grid stress events but averages 3-5 cents/kWh. High risk/high reward — best for customers who understand real-time pricing.
Plans with credit rollover (TXU, Green Mountain, Chariot) carry unused export credits to the next month. Without rollover, you lose surplus credits each billing cycle. This matters most in spring and fall when production exceeds usage.
Austin Energy is the exception to everything above. As a municipal utility, it sets its own solar policy — and it is the best solar deal in Texas.
Per kWh exported, recalculated annually
Flat rebate for residential solar
Shortest in Texas, even without 25D
Net metering (other states): 1 kWh exported = 1 kWh credit on your bill. Export and import are offset at the same rate.
Value of Solar (Austin): Exports and imports are tracked separately. You buy electricity at the full retail rate (approximately 12 cents/kWh for residential). You sell exports at the VoS rate (9.91 cents/kWh). Your bill shows two separate line items.
The VoS rate is lower than the retail rate, so it is not as favorable as true 1:1 net metering. However, combined with the $2,500 rebate and 5.5 peak sun hours, Austin solar payback is still the fastest in Texas.
Austin Energy VoS credits roll over month to month throughout the year, but any remaining credits expire at year-end (December billing cycle). This means spring overproduction carries into summer, but you lose any unused credits in December. Size your system to minimize year-end surplus.
El Paso is in Texas but NOT in ERCOT. El Paso Electric is a regulated utility on the Western Interconnection with completely different solar rules.
El Paso Electric credits exported solar energy at avoided cost, which is lower than the retail rate. There is no REP shopping because El Paso Electric is the only provider. The excellent solar irradiance (6.0 peak sun hours — highest in Texas) partially compensates for the lower export credit rate. El Paso also has lower installation costs ($1.95-$2.35/W) due to the arid climate and straightforward rooftop conditions.
Enter your ZIP code to see which delivery utility serves you and which REP solar buyback plans are available in your territory.
Find solar buyback plans from retail electric providers (REPs) in your delivery utility territory.
Texas does not have traditional net metering. Instead, in deregulated areas, you choose a Retail Electric Provider (REP) that offers a "solar buyback" plan. When your solar panels produce more electricity than you use, the excess is exported to the grid and your REP credits you at the buyback rate.
CPS Energy is a municipal utility serving San Antonio and Bexar County. Like Austin Energy, you cannot shop REPs — but the solar terms are much less favorable.
With export credits at only 3-4 cents/kWh, self-consumption optimization is critical. Size your system to match your daytime usage as closely as possible to minimize low-value exports. A battery can help by storing excess production for evening use instead of exporting at avoided cost. CPS Energy previously offered generous solar rebates ($2,500+), but the SolarHost program is exhausted.
Common questions about net metering and solar buyback in Texas.
Deep dive into REP buyback plans, rate comparisons, and how to switch.
Read guideFind your delivery utility and available REP solar plans by ZIP code.
Read guideComplete overview of going solar in Texas — costs, incentives, and timeline.
Read guideLast updated: February 18, 2026. REP plans and rates change frequently. Verify current rates on the Power to Choose marketplace or directly with your REP.
Texas solar is different. No net metering, deregulated REPs, and no federal tax credit. NuWatt Energy helps you find the right REP buyback plan, size your system correctly, and maximize your savings.