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Get a Free QuoteTexas is deregulated — you choose your REP, not your utility. The right REP plan turns a home battery into a money-printing machine. Free nights plans let you charge at $0/kWh and discharge at $0.22/kWh. This guide compares every major REP strategy for solar + battery in 2026.
8
REP Plans Compared
$0/kWh
Free Nights Charging
$720-960
Annual Battery Arbitrage
$0 ITC
25D Expired
In ERCOT-deregulated Texas (~85% of the state), your Retail Electric Provider (REP) sets your rate, while your TDU (Oncor, CenterPoint, AEP Texas) delivers the power. Solar reduces your daytime usage, and excess is credited through your REP's solar buyback plan. A battery supercharges this by charging for $0/kWh during free night hours (9 PM - 6 AM on plans like TXU Free Nights) and discharging during expensive daytime periods ($0.18-0.25/kWh). The annual arbitrage from a 13.5 kWh battery on a free nights plan is $720-960/year.
Municipal utilities (Austin Energy, CPS Energy) are not deregulated and have their own solar buyback rules — typically less favorable than the best REP plans.
Texas runs on ERCOT (Electric Reliability Council of Texas), covering ~85% of the state. Understanding the TDU vs. REP split is essential for maximizing solar + battery value.
Oncor, CenterPoint, AEP Texas, and TNMP own the wires and poles. They deliver electricity to your home and handle interconnection for solar. You cannot choose your TDU — it is based on your address. TDU charges are pass-through, appearing on every REP bill.
TXU, Reliant, Green Mountain, Chariot, and 100+ other REPs compete for your business. They set the energy rate (the commodity price per kWh). REPs determine solar buyback terms, free nights/weekends, and contract length. This is where battery strategy is won or lost.
ERCOT manages the wholesale market and grid reliability. They do not bill you directly. ERCOT wholesale prices drive REP pricing and can spike to $5/kWh during extreme events. The upcoming DRRS (Distributed Resource Registration System) will let batteries participate in grid services starting 2026.
In regulated states, you are stuck with one utility and one rate. In Texas, you can shop for the best battery-optimized plan. A free nights plan from TXU creates $720-960/year in arbitrage — something impossible in states like Massachusetts or New Jersey. Your TDU handles the interconnection paperwork, but your REP choice determines your financial return.
The federal residential solar tax credit (Section 25D) expired December 31, 2025. Texas homeowners now pay full price for solar and batteries. But Texas has unique advantages that make batteries more valuable here than almost anywhere else.
While homeowners get $0 in federal tax credits, third-party financing companies can still claim the Section 48/48E commercial ITC (30%) on projects beginning construction before July 4, 2026. This makes PPA and lease agreements particularly attractive in Texas because the financing company passes their ITC savings to you as a lower rate. Battery-inclusive PPAs with free-night REP stacking create the strongest economics in the country.
Not all REP plans are created equal. Free nights plans offer the best battery arbitrage, while solar buyback plans maximize export value. Here is how every major option stacks up.
| REP / Plan | Free Window | Day Rate | Battery Strategy | Annual Savings | Solar Fit |
|---|---|---|---|---|---|
| TXU Energy Free Nights | 9 PM - 6 AM | $0.22/kWh | Charge battery free overnight, discharge during day | $720-$960 | Excellent |
| Reliant Energy Free Nights & Solar Days | 9 PM - 7 AM | $0.20/kWh | Charge free overnight + solar during day, discharge at peak | $680-$880 | Excellent |
| Green Mountain Energy Solar Buyback 12 | N/A | $0.17/kWh | 1:1 buyback — store excess for self-use or export at retail | $500-$700 | Strong |
| Chariot Solar Solar Buyback Plan | N/A | $0.15/kWh | 1:1 buyback at retail rate — battery adds backup value | $450-$620 | Strong |
| Rhythm Energy Solar Buyback 24 | N/A | $0.16/kWh | Credits at retail — battery smooths evening usage | $420-$580 | Good |
| Pulse Power Free Weekends | Fri 6 PM - Sun 11:59 PM | $0.19/kWh | Charge battery free all weekend, discharge Mon-Fri | $380-$520 | Good |
| Direct Energy Free Power Weekends | Sat-Sun all day | $0.21/kWh | Charge weekends, discharge weekday peaks | $340-$480 | Moderate |
| Frontier Utilities Wholesale Indexed | N/A (real-time pricing) | $0.08/kWh | Charge when ERCOT wholesale drops to $0-0.03, discharge at $0.15+ | $300-$900 (volatile) | Advanced |
Key finding: TXU Free Nights generates the highest battery arbitrage at $720-960/year because the $0.22/kWh daytime rate creates the largest spread from the $0 overnight rate. For solar-only (no battery), Green Mountain Solar Buyback 12 offers the best 1:1 buyback at a competitive $0.17/kWh base rate.
Free nights plans are unique to deregulated Texas. No other state offers $0/kWh overnight electricity. Here is exactly how battery arbitrage works on these plans.
Solar bonus: On sunny days, your solar panels recharge the battery during daytime too. This means some days you get two full discharge cycles — one from overnight free charging and another from midday solar. The annual value jumps to $960+ with optimal solar-battery pairing.
$0.00
Cost to charge overnight
$0.22
Avoided daytime rate
$868+
Annual arbitrage value
Each REP plan creates different battery economics. Here are the top four plans with specific battery strategies for each.
Free Nights
Free Window
9 PM - 6 AM
Day Rate
$0.22/kWh
Spread
$0.22
Annual Savings
$720-$960
Battery strategy: Charge battery free overnight, discharge during day
Largest free nights provider. Higher daytime rate funds the free overnight window. Ideal for battery arbitrage.
Free Nights & Solar Days
Free Window
9 PM - 7 AM
Day Rate
$0.20/kWh
Spread
$0.20
Annual Savings
$680-$880
Battery strategy: Charge free overnight + solar during day, discharge at peak
Longer free window (10 hours). Some plans include solar buyback credits. NRG subsidiary.
Solar Buyback 12
Free Window
N/A
Day Rate
$0.17/kWh
Spread
$N/A
Annual Savings
$500-$700
Battery strategy: 1:1 buyback — store excess for self-use or export at retail
100% renewable. True 1:1 net metering equivalent. 12-month contract. Best pure solar buyback plan in TX.
Solar Buyback Plan
Free Window
N/A
Day Rate
$0.15/kWh
Spread
$N/A
Annual Savings
$450-$620
Battery strategy: 1:1 buyback at retail rate — battery adds backup value
Lower base rate than Green Mountain. True 1:1 buyback. Community solar option available.
Austin and San Antonio are not deregulated. These municipal utilities set their own rates and solar buyback terms. Battery strategy is fundamentally different here.
Austin metro, Travis/Williamson counties | 500K customers
Retail Rate
$0.120/kWh
Solar Buyback
Value of Solar (VoS) at $0.097/kWh — much less than retail $0.12/kWh
Solar Rebate
$2,500 flat
Battery Value
Moderate — VoS buyback below retail reduces export value. Battery helps self-consume more.
Battery Program
No residential battery incentive. ERCOT participation possible via DRRS (2026+).
San Antonio metro, Bexar County | 900K customers
Retail Rate
$0.125/kWh
Solar Buyback
Avoided cost buyback (~$0.03-0.05/kWh) — very unfavorable for solar
Solar Rebate
None (ended)
Battery Value
Low — standard avoided-cost buyback. Battery mainly for backup.
Battery Program
No residential battery program. SolarHostSA commercial only.
In deregulated ERCOT territory, a battery on a free nights plan generates $720-960/year in arbitrage. In Austin Energy territory, the same battery generates roughly $80-120/year from self-consumption optimization (avoiding the gap between retail and VoS rates). In CPS territory, the battery is primarily a backup device with minimal economic return. If you live in Austin or San Antonio and want battery arbitrage, a deregulated REP plan is not available — battery value is mainly backup power and self-consumption.
Texas battery sizing must account for extreme summer cooling loads and grid reliability concerns. A battery that works in Massachusetts will not cover a Texas summer.
A 13.5 kWh battery in Massachusetts powers a home for 24+ hours because heating loads are lower and spread across the day. In Texas summer, a 3-ton AC unit drains 13.5 kWh in under 4 hours at full load. If backup power during summer outages is your priority (not just arbitrage), budget for 20+ kWh. The sweet spot for most Texas homes: 2 x Tesla Powerwall 3 (27 kWh total) which handles both free-night arbitrage and provides meaningful backup during summer grid events.
Winter Storm Uri (February 2021) left 4.5 million Texas homes without power for days. ERCOT has since invested billions in weatherization and capacity, but the fundamental grid architecture remains vulnerable to extreme events. Battery backup is not theoretical in Texas — it is a survival tool.
4.5M
Homes lost power (Uri)
300%+
Battery adoption increase since 2021
2-4 days
Backup with solar + battery
ERCOT is launching the Distributed Resource Registration System (DRRS) in 2026, allowing home batteries to participate in grid services. This means your battery could earn additional revenue by providing ancillary services to ERCOT during grid stress events — on top of your free-night arbitrage and backup value. Early adopters will be first in line when DRRS programs open to residential batteries.
Texas gets 4.0-6.5 peak sun hours year-round — among the best in the US. A 10 kW system produces 14,000-16,000 kWh annually. Production is highest when you need it most (summer AC season).
| Month | kWh/kW | 10 kW System | Peak Sun Hours | Hail Risk |
|---|---|---|---|---|
| January | 105 | 1,050 kWh | 4.2 | Low |
| February | 110 | 1,100 kWh | 4.6 | Low |
| March | 135 | 1,350 kWh | 5.2 | Moderate |
| April | 145 | 1,450 kWh | 5.6 | High |
| May | 155 | 1,550 kWh | 5.8 | High |
| June | 160 | 1,600 kWh | 6.3 | Moderate |
| July | 165 | 1,650 kWh | 6.5 | Low |
| August | 160 | 1,600 kWh | 6.4 | Low |
| September | 140 | 1,400 kWh | 5.7 | Low |
| October | 130 | 1,300 kWh | 5.1 | Moderate |
| November | 110 | 1,100 kWh | 4.5 | Low |
| December | 100 | 1,000 kWh | 4 | Low |
| Annual Total | 1,615 | 16,150 kWh | 5.3 avg | — |
Texas leads the nation in hail damage claims. DFW, Lubbock, and Amarillo sit in “Hail Alley.” Here is what you need to know about protecting your solar investment.
Texas offers a 100% property tax exemption for solar and battery equipment (TX Tax Code Section 11.27). Your solar system adds $0 to your assessed property value. File Form 50-123 with your county appraisal district by April 30. This means hail damage repair costs are the only financial risk — your property taxes never increase due to solar.
Common questions about solar + battery strategy in deregulated Texas.
In ERCOT-deregulated Texas (~85% of the state), you choose your Retail Electric Provider (REP) who sets your electricity rate. Your delivery utility (Oncor, CenterPoint, AEP Texas) handles the wires. Solar generates electricity that offsets your usage, and any excess is credited by your REP through their solar buyback plan. A battery stores excess solar or charges during free-night hours for discharge during expensive daytime periods. The key is picking the right REP plan to maximize your battery value.
TXU Energy Free Nights is the top pick for battery owners: you get free electricity from 9 PM to 6 AM, so your battery charges for $0 overnight and discharges during $0.22/kWh daytime hours. This creates $720-960/year in arbitrage. For pure solar without battery, Green Mountain Solar Buyback 12 offers true 1:1 buyback at retail, maximizing export value.
The residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing solar or batteries with cash or loan receive $0 in federal tax credits. However, if you use a PPA or lease, the third-party financing company can claim Section 48/48E (30% commercial ITC) on projects beginning construction before July 4, 2026, passing savings to you as a lower rate.
Yes, for three reasons: (1) Free nights plans let you charge for $0 and discharge at $0.18-0.25/kWh, generating $700-960/year in arbitrage, (2) Texas grid reliability is a real concern after Winter Storm Uri — a battery provides 24-48 hours of backup, and (3) wholesale-indexed plans let battery owners exploit ERCOT price spikes. Without the ITC, batteries cost $10,000-15,000 installed, so the 12-18 year payback makes sense when backup value is factored in.
Austin Energy is a municipal utility — NOT part of the deregulated ERCOT market for rate-setting. You cannot choose your REP. Austin Energy buys excess solar at their Value of Solar (VoS) rate of $0.097/kWh, significantly less than the retail rate of $0.12/kWh. They offer a $2,500 flat rebate for solar installations. A battery helps by self-consuming more solar instead of exporting at the lower VoS rate.
Battery arbitrage on a free nights plan means charging your battery for $0/kWh between 9 PM and 6 AM, then discharging during daytime when your REP charges $0.18-0.25/kWh. A 13.5 kWh battery at 80% depth of discharge provides 10.8 kWh of usable energy. At $0.22/kWh daytime rates, that is $2.38/day or $868/year in pure arbitrage savings, minus about 8% round-trip efficiency losses.
For free nights arbitrage, 10-13.5 kWh covers a typical home overnight-to-peak bridge. For backup power (grid reliability), size based on critical loads: 13.5 kWh handles essentials for 24+ hours, 20-27 kWh runs AC for 8-12 hours during a summer outage. Texas cooling loads are extreme — a 3-ton AC draws 3.5 kW, consuming 13.5 kWh in under 4 hours at full load.
Solar panels are tested to IEC 61215 standards and withstand 1-inch hail at 52 mph. Most Texas hailstorms fall within this range. For Hail Alley (DFW, Lubbock, Amarillo), consider panels with enhanced hail ratings. Batteries mounted on walls or inside garages face zero hail risk. Your homeowner insurance typically covers hail damage to panels, and the 100% property tax exemption means solar adds no assessed value for tax purposes.
Technically possible but rarely practical. A typical Texas home uses 1,200+ kWh/month (AC-driven summer peaks of 80+ kWh/day). You would need 15+ kW of solar and 60+ kWh of battery — costing $80,000+. Grid-tied with battery backup is far more economical: you get backup power during outages while using the grid for peak AC loads, and free nights plans subsidize your battery charging.
Without a battery, your solar system shuts off during a grid outage (anti-islanding safety requirement). With a battery, your system islands from the grid and powers your home using stored energy and ongoing solar production. During Winter Storm Uri (Feb 2021), homes with battery backup maintained power for 2-4 days while millions lost electricity. This is the primary reason battery adoption has surged 300%+ in Texas since 2021.
Free-night and TOU plans only pay off when you have battery storage to discharge during peak hours. Propel financing lets you bundle solar + battery with $0 down — a third-party owner installs FEOC-compliant Silfab 440W panels and claims the 40% Section 48E ITC, passing the savings to you as a fixed monthly payment. An 8 kW system at $2.90/W ($23,200) becomes ~$13,920 effective cost at ~$117/month. 8.99% APR, 25-year term, 660 FICO minimum. Must begin construction before July 4, 2026.
See Propel Financing DetailsGet a free solar + battery quote customized for your REP plan and TDU territory. We will show you exactly how much free-night arbitrage your battery can earn — and how much backup power you get during grid events.