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Get a Free QuotePedernales Electric Cooperative serves over 400,000 meters across the Texas Hill Country. Their solar buyback rate is lower than you might expect — but with the right system design and battery strategy, solar still delivers exceptional value for PEC members. Here is the complete picture.
Understanding the difference between net metering and net billing is the key to designing a profitable solar system in PEC territory.
In states with true net metering, every kWh you export earns a full retail credit. If you pay $0.12/kWh, you get $0.12/kWh credit. Your meter effectively “spins backward.” PEC does not do this. Texas has no statewide net metering mandate, and as a cooperative, PEC sets its own rates.
This is a critical distinction. If you size your system assuming 1:1 credits, you will overestimate your savings by 40-60%. Every PEC solar design must account for the real buyback rate.
PEC credits your account for exported solar at the avoided cost rate — approximately $0.04-0.06/kWh. This is the wholesale price PEC would have paid to purchase that power from its generation sources. It is a fraction of the $0.11-0.13/kWh retail rate you pay when you consume power.
However, every kWh you self-consume from your panels avoids buying at the full retail rate. This means a kWh used directly is worth 2-3x more than a kWh exported. Your system design should maximize self-consumption.
The Bottom Line
With PEC, every kWh you use from your own panels saves you $0.11-0.13. Every kWh you export earns only $0.04-0.06. The financial strategy is clear: consume as much of your solar production as possible, and store the rest in a battery rather than exporting it.
PEC's buyback rate is among the lower options in Texas. Here is how it stacks up against other major utilities and the national average for net metering states.
| Utility | Type | Buyback Rate | Retail Rate | Credit Ratio |
|---|---|---|---|---|
| Pedernales Electric Co-Op (PEC) | Co-Op | $0.04-0.06/kWh | $0.11-0.13/kWh | ~35-46% |
| Austin Energy | Municipal | $0.097/kWh (Value of Solar) | $0.11-0.14/kWh | ~70-88% |
| Oncor Territory REPs (best plans) | Deregulated | $0.06-0.10/kWh | $0.10-0.15/kWh | ~50-67% |
| CPS Energy (San Antonio) | Municipal | $0.065/kWh | $0.11-0.14/kWh | ~46-59% |
| National average (net metering states) | Retail Credit | Full retail | N/A | 100% |
Rates as of Q1 2026. Subject to change. Always verify current rates with your utility. REP buyback rates vary by plan and provider.
Context Matters
While PEC's buyback rate is lower, PEC members also pay lower retail rates than many Texas utilities. The cooperative structure means no profit margin is extracted — savings are returned as capital credits. Additionally, PEC territory gets 5-10% more annual solar irradiance than coastal Texas, which boosts total production per installed kW.
Battery storage is not optional for PEC solar — it is essential for maximizing returns. Here is why a battery changes the economics completely.
PEC charges the same rate day and night, but your solar only produces during the day. A battery lets you use your own solar-generated power from 5-10 PM instead of buying from PEC at full retail — effectively turning a $0.04/kWh export into $0.12/kWh in avoided cost.
PEC residential rates include a demand component. By using stored solar during your peak demand window, you can reduce your monthly demand charge. This is especially valuable for homes with electric vehicles or pool pumps that create demand spikes.
Hill Country is prone to severe weather, ice storms, and wildfire-related outages. PEC territory can experience extended outages due to the rural nature of distribution lines. A battery keeps your lights on and refrigerator running when the grid goes down.
PEC has raised rates several times in recent years. A battery maximizes your self-consumption ratio, protecting you from future rate hikes. The more of your own solar you use, the less exposed you are to utility rate increases.
Recommended Battery Size for PEC Members
For most PEC homes, a single 10-13.5 kWh battery (Tesla Powerwall 3, Enphase IQ 5P, or Franklin WH) is the sweet spot. This stores 8-10 kWh of usable energy — enough to cover evening usage from sunset to bedtime. For larger homes or homes with electric vehicles, consider two batteries (20-27 kWh) to maximize self-consumption and provide whole-home backup.
Because PEC's buyback rate is low, the old advice of “offset 100% of your bill” does not apply. Instead, size your system to maximize self-consumption — ideally 70-80% of total production. Here is how that looks for different home sizes in Hill Country.
| Home Size | Monthly Usage | Recommended System | Self-Consumption | Annual Savings | Payback |
|---|---|---|---|---|---|
| 1,500 sq ft | 1,000 kWh | 6-7 kW | 70-80% | $1,100-1,400 | 8-10 years |
| 2,500 sq ft | 1,800 kWh | 10-12 kW | 65-75% | $1,800-2,200 | 7-9 years |
| 3,500+ sq ft (Hill Country estate) | 2,800+ kWh | 14-18 kW | 60-70% | $2,600-3,200 | 7-9 years |
Assumes battery storage included. Payback calculated at $2.70-3.00/W installed for solar, $8,000-12,000 for battery. Self-consumption assumes optimal load-shifting with battery. Annual savings based on PEC 2026 retail rate of $0.12/kWh average.
Hill Country Solar Advantage
PEC territory in the Texas Hill Country receives approximately 5.2-5.5 peak sun hours per day — about 10% higher than the Texas Gulf Coast and 30% higher than the Northeast. This means each kW of installed solar produces more annual kWh, improving your return on investment. A 10 kW system in PEC territory typically produces 14,000-15,500 kWh per year.
PEC serves a vast territory across the Texas Hill Country and surrounding areas. Here is what solar looks like in the major communities served by PEC.
Rapidly growing suburb west of Austin. Large lots with minimal shading make ideal solar sites. Many new-construction homes can integrate solar from the start. PEC is the primary electric provider.
Note: Dark sky ordinances mean minimal light pollution — and great roof exposure.
Affluent Hill Country community with high electricity usage (large homes, pools, EVs). Solar systems here tend to be larger to match demand. HOA restrictions are generally solar-friendly due to Texas Property Code Section 202.010.
Note: High energy bills ($300+/month) make solar ROI compelling even at PEC buyback rates.
Lakeside community with a mix of PEC and Pedernales service areas. Lake proximity means consistent weather patterns for predictable solar production. Many homes have south-facing roofs with minimal tree obstruction.
Note: Popular retirement community — solar reduces fixed-income energy costs.
Growing city in the heart of the Highland Lakes region. Larger lot sizes and fewer trees compared to Austin proper. PEC rates here are identical to other service territory areas.
Note: More affordable homes mean solar cost is a larger percentage of home value.
Small, artistic Hill Country town with strong environmental consciousness. Many homeowners pursue solar for both savings and sustainability. Terrain can create partial shading that requires careful panel placement.
Note: Hilly terrain may limit roof mounting; ground-mount systems are popular.
Historic community in western PEC territory. Lower population density means longer distribution lines and more frequent outages — making battery backup especially valuable. Excellent solar irradiance with minimal cloud cover.
Note: Rural properties often have acreage ideal for ground-mount solar.
Low buyback rates do not mean low returns — they mean you need a smarter strategy. Here are the five most impactful ways to maximize your investment.
At PEC rates, a battery is the single most impactful addition to your solar system. It shifts 20-30% of your production from low-value exports ($0.04-0.06/kWh) to high-value self-consumption ($0.11-0.13/kWh). The battery pays for itself in 5-7 years through this arbitrage alone, plus provides backup power. For PEC members, we recommend budgeting for a battery from day one rather than adding it later.
Run your dishwasher, laundry, pool pump, and EV charger during 10 AM - 3 PM when your panels are producing peak power. Use smart plugs and timers to automate this. Every kWh consumed during solar hours saves $0.11-0.13 instead of earning $0.04-0.06 as an export. For pool owners in Hill Country, running the pool pump during solar hours alone can save $30-50/month.
Do not overbuild. A system that produces 120% of your annual usage will export 40-50% at low rates. A system producing 80-90% of your annual usage (with battery) will self-consume 80-90% at full retail value. The smaller system has a better ROI. Work with your installer to model production vs. consumption hourly, not just monthly.
If you are considering an electric vehicle, electric water heater, or heat pump, adding these loads increases your self-consumption ratio and reduces exports. An EV charging at home during solar hours can absorb 8-12 kWh of production that would otherwise be exported at low rates. Time these loads to match solar production for maximum benefit.
Use your solar monitoring app (Enphase, SolarEdge, or Tesla) to track self-consumption ratio monthly. If you are consistently exporting more than 20% with a battery, adjust your load-shifting schedule. Some inverter platforms offer automated load management that shifts consumption to match real-time solar production.
Direct answers to the most common questions from PEC members going solar.
As of 2026, Pedernales Electric Cooperative pays approximately $0.04-0.06 per kWh for excess solar energy exported to the grid. This is a wholesale or avoided-cost rate, significantly below the retail rate of $0.11-0.13/kWh that you pay for electricity from PEC. The exact rate can vary by billing period and is subject to change by PEC's board of directors. Always check PEC's current rate schedule for the most up-to-date buyback figure.
PEC does not offer traditional 1:1 net metering where you get full retail credit for every kWh exported. Instead, PEC uses a net billing arrangement where exported solar is credited at the wholesale/avoided-cost rate ($0.04-0.06/kWh), while you pay full retail ($0.11-0.13/kWh) for electricity you consume from the grid. This means your system design should prioritize self-consumption — using your solar power directly rather than exporting it.
Yes, solar is absolutely worth it in PEC territory. The key is proper system sizing and battery storage. Every kWh you consume directly from your panels saves $0.11-0.13/kWh (the full retail rate), not the buyback rate. A well-sized system where 70-80% of production is self-consumed delivers strong returns. Adding battery storage shifts even more solar to self-consumption, boosting your effective savings rate. Typical PEC members see 7-10 year payback periods with battery systems.
Battery storage transforms PEC solar economics by converting low-value exports ($0.04-0.06/kWh) into high-value avoided purchases ($0.11-0.13/kWh). Without a battery, excess midday solar is exported at wholesale rates. With a battery, you store that energy and use it during evening and nighttime hours when your panels are not producing. This effectively doubles or triples the value of each kWh that would have been exported. A 10-13 kWh battery (like the Tesla Powerwall 3 or Enphase IQ 5P) can shift 8-10 kWh per day from export to self-consumption.
System size depends on your electricity usage, roof space, and whether you add battery storage. For a typical PEC home using 1,500-2,000 kWh per month, an 8-12 kW system is ideal. With battery storage, you can go slightly larger (10-14 kW) since you can store more excess production instead of exporting at low rates. Without a battery, undersizing slightly (covering 70-80% of usage) is more cost-effective than oversizing, because exported power earns so much less than self-consumed power.
PEC does not currently offer solar-specific rebates or incentive programs. However, several other financial benefits apply: the Texas property tax exemption means your home value increase from solar is not taxed (Property Tax Code Section 11.27), and there is no state sales tax on solar equipment in Texas. For commercial systems, the Section 48E Investment Tax Credit (ITC) applies if construction begins before July 4, 2026. PEC members should focus on maximizing self-consumption and battery arbitrage to build the best return.
Austin Energy offers a significantly more favorable solar rate through its Value of Solar (VoS) program, currently paying about $0.097/kWh for all solar production — roughly 2x PEC's buyback rate. However, Austin Energy also has higher base retail rates. The net effect is that Austin Energy is better for solar-only systems, but PEC members who add battery storage can close much of the gap by maximizing self-consumption. PEC's service territory also tends to have larger lots and less shading, which can mean higher production per panel.
Our IQ tool models your exact PEC rate structure, roof orientation, and usage pattern to calculate real savings — not inflated estimates based on net metering assumptions. See what solar + battery can do for your Hill Country home.