Net metering credits you at the full retail rate for excess solar production. But many states are shifting to net billing at lower avoided-cost rates. Here is what your utility actually pays you.
Texas Net Metering Policy
No statewide net metering mandate. Deregulated areas: REP solar buyback plans (3¢–retail match). Regulated municipals: Austin Energy Value of Solar (9.91¢/kWh), CPS Energy avoided cost.
| Credit Type | varies |
| System Cap | No state standard — varies by REP and municipal utility |
| Policy Trend | Market-based. Texas relies on retail competition rather than mandated net metering. In deregulated areas, solar owners must shop for REP solar buyback plans — rates range from 3¢ to retail-match. Austin Energy Value of Solar (9.91¢/kWh) is the strongest program in TX. |
Utility-by-Utility Breakdown
| Utility | Credit Type | Excess Handling | Notes |
|---|---|---|---|
| Oncor territory REPs (DFW, Waco) | varies | Solar buyback plans: Chariot ~7¢, TXU retail-match, Green Mountain ~8.5¢, Gexa ~3¢ | Deregulated — choose REP with best solar buyback rate. Oncor is delivery only. |
| CenterPoint territory REPs (Houston) | varies | Solar buyback plans: same REPs as Oncor territory. Chariot, TXU, Green Mountain available. | Deregulated — shop for solar-friendly REP plan. CenterPoint is delivery only. |
| Austin Energy | avoided cost | Value of Solar tariff: 9.91¢/kWh credit for all exported solar. $2,500 upfront rebate also available. | Best solar deal in TX — regulated municipal utility. VoS rate locked for 10 years. |
| CPS Energy (San Antonio) | avoided cost | Buyback at avoided cost rate (~3-4¢/kWh). Residential solar rebates phasing out. | Regulated municipal. SolarHostSA is commercial-only program. |
Impact on Your Solar Savings
In Texas, your net metering policy directly affects how much your solar system is worth. With varies credits, excess solar production is valued at the utility-determined rate. This affects your payback period and 25-year savings.
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Maximizing Value in Texas
- Size your system to match annual consumption (avoid large excess at year-end)
- Shift high-usage appliances (laundry, dishwasher) to solar production hours
- Monitor production monthly to ensure your system is performing as expected
Net Metering in Other States
See Net Metering Applied to Your TX Quote
Our calculator factors in your specific utility's net metering policy for accurate savings.