Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
Texas has no statewide net metering. Your solar compensation depends entirely on your delivery utility (TDU) and chosen Retail Electric Provider (REP). Enter your ZIP code below to find your territory and compare the best buyback plans available in your area.
2026 Federal Tax Credit Update: The Section 25D residential solar investment tax credit (ITC) expired December 31, 2025. Homeowners who purchase solar in 2026 receive $0 in federal tax credits. Your solar buyback plan and utility territory are now the most important factors in your financial return.
Enter your Texas ZIP code to identify your delivery utility and see which solar buyback plans are available in your territory. Compare rates, contract terms, and rollover policies side by side.
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.
Texas has a unique deregulated electricity market that directly affects how solar owners are compensated. Knowing the difference between regulated and deregulated territories is essential.
Most of Texas operates under a deregulated electricity market managed by ERCOT. In these areas, the TDU delivers power but does not sell it. You choose your own REP, and that REP sets your solar buyback rate.
Municipal utilities like Austin Energy and CPS Energy operate outside ERCOT’s deregulated market. They generate, distribute, and sell electricity. You cannot choose another provider, but some offer their own solar rebates and buyback programs.
Your Transmission and Distribution Utility owns the wires and meters. Assigned by address — you cannot choose. The TDU installs your bi-directional meter and processes interconnection. Oncor, CenterPoint, AEP TX, and TNMP are the four deregulated TDUs.
Your Retail Electric Provider sells you electricity and handles billing. You choose your REP and can switch. REPs set the buyback rate — the price paid for your excess solar. Chariot, TXU, Green Mountain, Rhythm, and Reliant are popular solar REPs.
The Electric Reliability Council of Texas manages the deregulated grid, balancing supply and demand across the state. ERCOT wholesale prices affect variable buyback plans. Municipal utilities operate independently from ERCOT.
Each utility territory has different solar economics. The buyback rate, available REPs, and local rebates vary significantly. Find your territory below for territory-specific details.
DFW, Waco, West Texas
~10 million people
Solar Rebate
None
Buyback Range
3-10¢/kWh
Electric Rate
~15¢/kWh avg
Depends on REP choice — Chariot, TXU, Green Mountain lead
Houston metro area
~2.8 million customers
Solar Rebate
None
Buyback Range
Wholesale-8.5¢/kWh
Electric Rate
~16¢/kWh avg
Many REP options, second most competitive territory
South TX (Corpus Christi, McAllen, Laredo)
~1 million customers
Solar Rebate
None
Buyback Range
3-9¢/kWh
Electric Rate
~14¢/kWh avg
Fewer REP options than Oncor/CenterPoint
Select areas of North, Central, and West TX
~240,000 customers
Solar Rebate
None
Buyback Range
3-8¢/kWh
Electric Rate
~14.5¢/kWh avg
Fewest REP options — TXU and Reliant most available
City of Austin
~550,000 customers
Solar Rebate
$2,500
Buyback Range
9.91¢/kWh
Electric Rate
~12¢/kWh avg
Value of Solar (VOS) tariff — fixed, predictable credit
San Antonio
~930,000 customers
Solar Rebate
$0 (ended)
Buyback Range
3-4¢/kWh
Electric Rate
~12.5¢/kWh avg
Avoided cost rate — lowest compensation in TX
Solar buyback in Texas is fundamentally different from net metering in other states. Understanding the flow of electricity and credits is key to maximizing your return.
Your solar panels produce electricity during daylight hours. Any power used by your home is consumed directly — this is free electricity.
When production exceeds consumption, excess kilowatt-hours flow to the grid. Your bi-directional smart meter records every kWh exported.
Your TDU (Oncor, CenterPoint, etc.) tracks interval data for both imports and exports. This data is reported to your REP each billing cycle.
Your REP multiplies exported kWh by your buyback rate and applies the credit to your bill. Credits offset energy charges but not TDU delivery fees.
Your buyback rate is locked for the contract term (12-24 months). Most predictable option. Rates typically range from 7 to 10 cents per kWh depending on the REP and contract length.
Your buyback rate fluctuates with ERCOT wholesale prices. Can spike above 50 cents during peak demand but may drop below 2 cents off-peak. Higher risk, higher potential reward.
Your export credit equals your consumption rate — true one-to-one offset similar to net metering. Rare in Texas and usually comes with a higher consumption rate to compensate.
Set by the municipal utility (Austin Energy or CPS Energy). Not negotiable. Austin Energy’s Value of Solar at 9.91 cents is among the best in Texas. CPS Energy’s avoided cost at 3-4 cents is among the worst.
Contract Length
6, 12, or 24 months
Shorter = more flexibility
Rollover Credits
Yes or No
Yes prevents losing summer credits
Early Termination Fee
$0 - $200 typical
Check before signing
Renewal Rate
Fixed or variable
Auto-renewal may be worse
The difference between the best and worst buyback plans can mean hundreds of dollars per year. Use these tips to evaluate plans beyond just the headline buyback rate.
Fixed-rate buyback plans lock in your export credit for the contract term (12-24 months). Variable plans tie to volatile ERCOT wholesale prices — great during summer peaks, painful during off-peak hours when rates can drop below 2 cents.
Shorter contracts (12 months) give you flexibility to switch if better plans emerge. Longer contracts (24 months) lock in rates but include early termination fees of $150-200. Match contract length to your comfort level.
Plans with rollover credits carry unused export credits month-to-month. Without rollover, excess credits vanish each billing cycle. During high-production summer months, rollover prevents losing valuable credits.
Some plans market "100% renewable" or green energy certification. Your solar panels are already green. You are paying a premium for the REP to buy Renewable Energy Certificates (RECs). Only worth it if you value the certification itself.
Some REPs advertise a high buyback rate that changes after 6 months or resets to a lower "renewal rate" automatically. Always check what happens at contract end — auto-renewal rates are often worse than the initial offer.
Because buyback rates are lower than consumption rates, oversizing your system means exporting cheap power and buying back expensive power at night. Aim for 80-100% of annual consumption to maximize the value of every kWh.
The federal landscape changed dramatically with the OBBBA bill signed July 4, 2025. Here is what Texas solar buyers need to know.
$0
Expired Dec 31, 2025
Homeowners who purchase solar outright (cash or loan) in 2026 receive zero federal tax credits. This applies to all residential installations regardless of state.
30%+
Until July 4, 2026 (construction start)
Lease and PPA systems: the third-party system owner (not the installer) can claim the commercial ITC if construction begins before July 4, 2026. This may lower your monthly payment.
100%
Statewide, no expiration
Texas law exempts 100% of the added home value from solar panels from property taxes. A system that adds $20,000 in home value results in $0 additional property taxes. This is automatic and statewide.
Austin Energy’s $2,500 solar rebate remains one of the only active utility rebates in Texas. Combined with the 9.91 cents/kWh Value of Solar buyback rate and the 100% property tax exemption, Austin offers the best solar economics in the state despite the loss of the federal ITC. Read our Austin Energy Solar Guide
Common questions about finding your Texas utility, solar buyback plans, and how deregulation affects solar owners.
Enter your ZIP code in the utility finder tool above. Your TDU is determined by your physical address — you cannot choose or change it. The four deregulated TDUs are Oncor (DFW, Waco, West TX), CenterPoint (Houston), AEP Texas (South TX), and TNMP (scattered areas). If you live in Austin, you are served by Austin Energy; in San Antonio, by CPS Energy. Both are municipal utilities with different solar programs than the deregulated market.
A TDU (Transmission and Distribution Utility) owns and maintains the electrical grid infrastructure — poles, wires, transformers, and meters. A REP (Retail Electric Provider) is the company that sells you electricity and handles billing. In deregulated Texas, you cannot choose your TDU (it is assigned by address), but you can choose your REP. Your REP sets the solar buyback rate. The TDU charges a fixed delivery fee that appears on your REP bill regardless of which REP you choose.
In deregulated Texas, your solar buyback rate depends entirely on which REP and plan you choose. Two neighbors with identical solar systems on the same street can have completely different buyback rates if they use different REPs. One might earn 10 cents per kWh with Chariot while the other earns 7.6 cents with Reliant. This is why comparing REP plans is so important — the rate difference adds up to hundreds of dollars per year.
Yes, but it works differently. Municipal utilities like Austin Energy and CPS Energy have their own solar programs instead of REP-based buyback plans. Austin Energy offers a Value of Solar tariff at 9.91 cents per kWh plus a $2,500 rebate. CPS Energy offers an avoided-cost buyback of approximately 3 to 4 cents per kWh with no rebate. You cannot choose a different provider in these areas — the municipal utility is your only option for both consumption and solar exports.
Yes, you need a bi-directional smart meter that records both electricity drawn from the grid and electricity exported to the grid. Your TDU installs this meter at no cost as part of the solar interconnection process. Your solar installer typically files the interconnection application with the TDU on your behalf. The process takes 2 to 6 weeks depending on the TDU. Your system should not export power until the meter is installed and the interconnection is approved.
The Section 25D residential solar investment tax credit expired December 31, 2025. Homeowners who purchase solar in 2026 receive zero federal tax credits. However, if you go with a lease or PPA, the third-party system owner (the financing company) may still claim the Section 48 or 48E commercial credit if they begin construction before July 4, 2026. Texas also offers a 100% property tax exemption for residential solar — your property taxes will not increase due to the added home value from solar panels.
When you switch REPs, any accumulated buyback credits with your current REP are typically forfeited. Most REPs do not issue a final payout for unused credits. To minimize loss, time your REP switch to coincide with a low-credit balance — ideally in winter when solar production is lower and credits are smaller. The switch itself takes one to two billing cycles. Your solar system continues operating normally throughout the transition; only your REP billing changes.
Battery storage changes the math significantly. Without a battery, you export excess solar at the buyback rate (7 to 10 cents) and buy grid power at night at the consumption rate (12 to 16 cents). With a battery, you store excess solar and use it at night, avoiding the buyback rate gap. This makes a lower buyback rate less painful because you export less. Battery owners in Texas may benefit from wholesale-indexed plans where they can time exports to ERCOT price spikes during summer peak hours.
Explore our complete library of Texas solar guides covering costs, buyback plans, utility-specific programs, and financing options.
Compare every major REP buyback plan with rates, terms, and rollover policies.
Average costs per watt by metro, system size, and financing option in Texas.
$2,500 rebate + 9.91 cents VOS. The best solar deal in Texas right now.
San Antonio solar economics with CPS Energy avoided cost buyback.
Compare financing options now that the residential ITC is gone.
How the 100% statewide property tax exemption protects your home value.
Why battery storage matters for solar owners in the Texas grid.
Combine solar with a heat pump for maximum electricity offset in Texas.
Overview of all Texas solar content, guides, and calculators.
Last updated: February 2026. Buyback rates and plan availability change frequently. Always verify current rates with your REP before signing a contract. NuWatt Energy is not affiliated with any REP listed on this page. This guide is for informational purposes and does not constitute financial advice.