Texas Solar Buyback Plans 2026: How to Get Paid for Excess Solar

In deregulated Texas, you choose a Retail Electric Provider (REP) with a solar buyback plan. When your solar panels produce more electricity than you consume, the excess is exported to the grid. Your REP credits you at the buyback rate (typically 7-10 cents per kWh) on your monthly bill. The credits offset the cost of electricity you draw from the grid at night or on cloudy days. This is not traditional net metering — the buyback rate is usually lower than the retail rate you pay for consumption.

As of early 2026, Chariot Energy offers the highest consistent buyback rate at approximately 10 cents per kWh on their Solar Buyback 24 plan. Green Mountain Energy follows at about 9.7 cents, then Rhythm Energy at approximately 9.5 cents. However, the best plan depends on more than just the buyback rate — you also need to consider the consumption rate, contract length, rollover credits, and availability in your TDU territory.

Your smart meter tracks electricity flowing in both directions. Your TDU (delivery utility like Oncor or CenterPoint) reports the interval data to your REP. On your monthly bill, you will see total consumption (kWh drawn from the grid), total export (kWh sent to the grid), the buyback credit (exports multiplied by the buyback rate), and TDU delivery charges (which are based on consumption only, not netted against exports). The buyback credit reduces your energy charges but does not offset TDU delivery charges.

This depends on your REP and plan. Plans with rollover credits (like Chariot and Green Mountain) carry unused credits forward month-to-month during the contract. When the contract ends, most REPs forfeit any remaining credit balance. Some REPs may issue a final payout, but this is uncommon. To maximize value, try to time your contract renewal so you do not have a large accumulated credit balance at expiration.

Yes, you can switch REPs at any time — but check your current contract for early termination fees (ETFs). Most solar buyback plans charge $150 to $200 for early cancellation. If your contract is ending, you can switch with no penalty. The transition typically takes one to two billing cycles. Your solar system continues to work normally during the switch; your TDU service is unaffected.

Traditional net metering (used in states like California and Massachusetts) credits your exports at the full retail rate, effectively spinning your meter backward. Texas solar buyback plans credit exports at a separate, usually lower, buyback rate. For example, you might pay 15 cents per kWh for consumption but receive only 9 cents per kWh for exports. This means sizing your system to minimize exports and maximize self-consumption is more important in Texas than in net metering states.

On plans with rollover credits (Chariot, Green Mountain, Rhythm), unused credits carry forward to the next billing cycle for the duration of your contract. On plans without rollover (TXU, Reliant, Constellation, Pulse Power), credits that exceed your monthly bill are typically forfeited or capped. Always check the specific plan terms — the rollover policy significantly affects the value of a buyback plan, especially during high-production summer months.

Wholesale (indexed) buyback plans tie your export credit to real-time ERCOT wholesale prices. During peak summer afternoons, wholesale rates can spike to 50 cents or more per kWh, which sounds attractive. However, wholesale rates can also drop below 2 cents per kWh during off-peak hours and even go negative. For most homeowners, a fixed buyback rate of 9 to 10 cents per kWh provides more predictable and reliable value. Wholesale plans are better suited for owners with battery storage who can time their exports.

There is no minimum system size to enroll in a solar buyback plan from a REP. However, your system must be interconnected with your TDU (Oncor, CenterPoint, AEP TX, or TNMP) and have a bi-directional smart meter installed. The interconnection application is typically handled by your solar installer. Systems up to 50 kW qualify for simplified residential interconnection. Most residential systems (5-12 kW) qualify easily.

On fixed-rate buyback plans (which most are), yes — both your consumption rate and buyback rate are locked for the contract duration (typically 12 or 24 months). This protects you from rate increases during the contract. When the contract expires, you will need to renew or switch to a new plan. Rates at renewal may be higher or lower depending on market conditions. Variable-rate plans can change monthly, which introduces more risk.