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Every REP solar buyback plan compared side by side. Real rates, contract terms, service territories, and which plan wins for your TDU area in the deregulated ERCOT market.
Texas has no state-mandated net metering. Your buyback rate depends entirely on which Retail Electric Provider you choose. The difference between the best and worst plan can be worth $500 or more per year.
11
Plans Analyzed
8.5¢/kWh
Best Fixed Rate
4
TDU Territories
2
Municipal Utils
For Google AI Overview
Oncor (DFW): TXU Solar Buyback 12/24 offers retail-match credits — effectively 1:1 net metering, the best value in Texas.
CenterPoint (Houston): Green Mountain Pollution Free Solar Buyback 36 at 8.5 cents/kWh fixed is the highest fixed export rate available.
AEP Texas / TNMP: Chariot Solar Buyback 24 at 7.0 cents/kWh fixed is the most widely available plan, covering all four TDU territories.
Austin Energy (municipal): Value of Solar tariff at 9.91 cents/kWh plus a $2,500 rebate makes Austin the best solar market in Texas overall.
Note: The federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners buying solar with cash or a loan in 2026 receive $0 in federal tax credits.
Texas is unlike nearly every other state. Understanding the deregulated market structure is essential before choosing a plan.
About 85% of Texas runs on the ERCOT deregulated grid. Unlike most states where a single regulated utility sets rates, Texas separates power delivery from power sales. Your TDU (Transmission and Distribution Utility) delivers the electrons. Your REP (Retail Electric Provider) sells you the electricity and sets your solar buyback rate.
The four TDU territories are Oncor (DFW, 10M+ people), CenterPoint (Houston, 2.8M customers), AEP Texas (South and West TX), and TNMP (select areas). You cannot choose your TDU — it is based on your address. But you can choose from dozens of REPs competing for your business.
This competition means you have real power to shop for the best solar buyback rate. The difference between the best and worst plan can mean $400 to $600 per year in lost export value.
Net Metering (most other states):
You export 1 kWh, your meter spins backward by 1 kWh. You get full retail credit. Simple, valuable, and mandated by most state utility commissions.
Solar Buyback (Texas):
Two separate transactions. You buy from the grid at your retail rate (14 to 18 cents/kWh). You sell exports back at a separate buyback rate (3 to 8.5 cents/kWh for most plans). You always lose money on exported power — unless you are on TXU retail-match in Oncor territory.
The exception — TXU Retail-Match:
TXU Solar Buyback plans in Oncor territory credit exports at the same rate you pay for consumption. This is effectively 1:1 net metering and the best solar buyback deal in the deregulated market.
Your Solar Panels
Generate electricity
Your Home Uses ~70%
Saves at retail rate
~30% Exported
Earns buyback rate
14-16¢
You pay per kWh (retail)
3-8.5¢
REP pays you per kWh (buyback)
5-11¢
The spread (lost value per export kWh)
Every major REP solar buyback plan in the deregulated ERCOT market, sorted by buyback value. Data from Electricity Facts Labels as of March 2026.
| REP / Plan | Buyback Rate | Type | Contract | Service Areas | Rollover | Green | Rating |
|---|---|---|---|---|---|---|---|
TXU Energy Solar Buyback 12 | Retail Match (1:1) | fixed | 12 months | Oncor | No | Excellent | |
TXU Energy Solar Buyback 24 | Retail Match (1:1) | fixed | 24 months | Oncor | No | Excellent | |
Green Mountain Energy Pollution Free Solar Buyback 36 | 8.5¢/kWh | fixed | 36 months | OncorCenterpoint | 100% | Excellent | |
Chariot Energy Solar Buyback 24 | 7¢/kWh | fixed | 24 months | OncorCenterpointAEPTnmp | 100% | Good | |
Constellation Solar Buyback 12 | 6.5¢/kWh | fixed | 12 months | OncorCenterpoint | No | Good | |
Shell Energy Solar Buyback 24 | 6¢/kWh | fixed | 24 months | OncorCenterpoint | No | Good | |
MP2 Energy Solar Buyback 24 | 6¢/kWh | fixed | 24 months | OncorCenterpoint | No | Good | |
Pulse Power Solar Buyback 12 | 5.5¢/kWh | fixed | 12 months | OncorCenterpoint | No | Fair | |
Frontier Utilities Solar Saver | 5¢/kWh | fixed | 12 months | OncorCenterpointTnmp | No | Fair | |
Rhythm Energy Solar Buyback | Wholesale (variable) | wholesale | Month-to-month | OncorCenterpointAEPTnmp | No | Low | |
Gexa Energy Solar Buyback 12 | 3¢/kWh | fixed | 12 months | OncorCenterpoint | No | Low |
TXU Energy
Solar Buyback 12
Buyback Rate
Retail Match (1:1)
Contract
12 mo
TXU credits exports at the same rate you pay for consumption — effectively 1:1 net metering. Only available in Oncor territory. Higher base rate than some competitors, but the retail-match export makes it excellent for solar. 12-month contract with auto-renewal.
TXU Energy
Solar Buyback 24
Buyback Rate
Retail Match (1:1)
Contract
24 mo
Same retail-match structure as the 12-month plan but with a 24-month commitment. Longer term provides rate stability. Only available in Oncor territory. Best option if your system overproduces — every kWh exported gets full retail value.
Green Mountain Energy
Pollution Free Solar Buyback 36
Buyback Rate
8.5¢/kWh
Contract
36 mo
Highest fixed buyback rate among major TX REPs. 100% renewable energy plan. 36-month contract provides long-term rate certainty. Credits roll over monthly. Green Mountain is a well-established TX green energy REP. Early termination fee applies.
Chariot Energy
Solar Buyback 24
Buyback Rate
7¢/kWh
Contract
24 mo
One of the most widely available solar buyback plans in TX. 100% solar-backed energy. Credits roll over month to month. Competitive fixed buyback rate. Available in all four deregulated TDU territories.
Constellation
Solar Buyback 12
Buyback Rate
6.5¢/kWh
Contract
12 mo
Solid mid-tier buyback rate with credit rollover. 12-month contract provides flexibility. Constellation (formerly Exelon) is a large national energy company with reliable billing and customer support.
Shell Energy
Solar Buyback 24
Buyback Rate
6¢/kWh
Contract
24 mo
Moderate fixed buyback rate with 24-month stability. Credits roll over monthly. Shell Energy (formerly MP2/Direct Energy) has solid customer service ratings. Available in Oncor and CenterPoint territories.
MP2 Energy
Solar Buyback 24
Buyback Rate
6¢/kWh
Contract
24 mo
Stable 24-month plan with credit rollover. MP2 Energy is a Shell Energy brand focused on transparent pricing. Competitive base rates make the overall plan attractive for solar homeowners in DFW and Houston.
Pulse Power
Solar Buyback 12
Buyback Rate
5.5¢/kWh
Contract
12 mo
Competitive consumption rate with moderate export credit. 12-month contract. No credit rollover — best if system is sized to match consumption closely. Pulse Power focused on DFW and Houston metros.
Frontier Utilities
Solar Saver
Buyback Rate
5¢/kWh
Contract
12 mo
Budget-friendly solar plan with a lower base rate offsetting the modest buyback rate. 12-month contract. No credit rollover. Serves Oncor, CenterPoint, and TNMP territories — one of few REPs with TNMP solar buyback coverage.
Rhythm Energy
Solar Buyback
Buyback Rate
Wholesale (variable)
Contract
Monthly
Month-to-month plan with export credits at ERCOT real-time wholesale rate. Can be very profitable during summer peak hours (rates spike to $1+/kWh during grid stress) but average around 3-5¢/kWh. No rollover — credits settle monthly. High risk/high reward. Best for customers who can time their usage.
Gexa Energy
Solar Buyback 12
Buyback Rate
3¢/kWh
Contract
12 mo
Lower buyback rate but often paired with a lower consumption rate, making total cost competitive. 12-month contract. No credit rollover — surplus credits lost at end of billing cycle. Best for systems sized to minimize exports.
Your TDU determines which REPs are available to you. Here is the best plan in each territory based on buyback value and plan terms.
~10 million people served
Best: TXU Solar Buyback 12/24
Retail-match export credits — you earn the same rate per exported kWh as you pay for consumption. This is effectively 1:1 net metering and the single best deal in the Texas deregulated market.
Runner-up: Green Mountain at 8.5¢/kWh fixed (36-month). Good if you prefer a fixed rate over retail-match variability, or if you value 100% renewable energy sourcing.
11 plans available in Oncor territory — the most competitive market in Texas.
~2.8 million customers
Best: Green Mountain Solar Buyback 36
8.5 cents/kWh fixed export credit — the highest fixed buyback rate among major REPs. 100% renewable energy plan. 36-month contract provides long-term rate certainty. Credits roll over monthly.
Runner-up: Chariot at 7.0¢/kWh fixed (24-month). Shorter commitment and still a strong rate. Also 100% solar-backed.
9 plans available in CenterPoint territory.
Corpus Christi, McAllen, Laredo, Victoria
Best: Chariot Solar Buyback 24
7.0 cents/kWh fixed export credit. Chariot is the only major REP with solar buyback coverage across all four TDU territories, making it the top choice in underserved AEP Texas territory.
Runner-up: Rhythm wholesale plan (month-to-month). Higher risk but can pay off during summer ERCOT price spikes in South Texas. Average 3-5¢ but can spike to $1+/kWh during grid stress events.
2 plans available — fewer options than Oncor or CenterPoint. Shop carefully.
Parts of Lubbock, Lewisville, and surroundings
Best: Chariot Solar Buyback 24
7.0 cents/kWh fixed. Same Chariot plan that leads in AEP Texas. TNMP has the fewest REP options of any TDU, so having Chariot available is fortunate. Frontier Utilities also serves TNMP at 5.0 cents/kWh.
Runner-up: Frontier Solar Saver at 5.0¢/kWh (12-month). Lower buyback rate but a shorter commitment. Budget option if you prioritize a low retail rate over export credits.
3 plans available — the smallest selection of any TDU territory.
Austin and San Antonio are regulated municipal utilities — you cannot choose your provider. Their solar programs could not be more different.
Value of Solar Rate
9.91¢/kWh
Upfront Rebate
$2,500
Austin Energy uses a Value of Solar (VoS) tariff — not net metering. All solar exports are credited at 9.91 cents/kWh regardless of time of day. This is recalculated annually based on avoided costs, capacity value, and environmental benefits.
Combined with the $2,500 flat rebate (still active in 2026), Austin has the best overall solar economics in Texas. The estimated payback for a 10 kW system is approximately 14.2 years.
Export Credit
~3-4¢/kWh
Rebate
$0
phased out
CPS Energy credits exported solar at "avoided cost" — approximately 3 to 4 cents per kWh, which is far below their retail rate of 12.5 cents. There is no true net metering. The SolarHost residential rebate program has been phased out completely as of 2026.
This makes San Antonio the worst major metro in Texas for solar economics. If you are a CPS Energy customer, the strategy is to size your system to minimize exports and maximize self-consumption. A battery becomes even more important here.
Municipal utilities are regulated monopolies — they do not compete for customers. They set buyback rates based on "avoided cost" (what it would cost them to generate that electricity themselves), which is usually much lower than the retail rate you pay. Unlike the deregulated ERCOT market, you cannot switch providers in municipal territory. Your only levers are system sizing, battery storage, and self-consumption optimization.
Four questions that determine which plan saves you the most money.
Your address determines your TDU, which determines which REPs are available. Check your current electricity bill or enter your ZIP code on powertochoose.org. Oncor (DFW) has the most choices. TNMP has the fewest.
Fixed buyback rates (5 to 8.5 cents/kWh) give certainty. Wholesale/variable rates like Rhythm fluctuate with ERCOT pricing — they average 3 to 5 cents/kWh but can spike to $1+/kWh during summer peaks. Fixed is safer. Variable is for those comfortable with risk.
If your system is oversized relative to daytime usage, you export heavily and the buyback rate is critical. If your system is right-sized and you use most production directly, the retail rate matters more. A battery shifts you from heavy exporter to minimal exporter.
Month-to-month (Rhythm only) gives maximum flexibility. 12-month contracts balance flexibility and rate stability. 24 to 36-month contracts lock in rates and protect against increases but carry $150 to $300 early termination fees. Shorter terms let you chase better rates as they appear.
What a 10 kW NuWatt solar system ($2.85/W) actually saves in each major Texas market, using the best available buyback plan for each territory.
Oncor + TXU Retail-Match
Gross Cost
$28,500
Annual Production
15,768 kWh
Annual Savings
$2,365/yr
Payback
12 years
25-Year Net Savings
$42,543
Includes $11,751 in property tax savings
TXU retail-match means exports earn the same as your retail rate (~15¢/kWh), making DFW the best deregulated market for solar in Texas.
CenterPoint + Green Mountain 8.5¢
Gross Cost
$28,500
Annual Production
15,476 kWh
Annual Savings
$1,911/yr
Payback
14.9 years
25-Year Net Savings
$31,195
Includes $12,509 in property tax savings
Green Mountain 8.5¢ fixed is the best fixed-rate option in Houston. Lower buyback than DFW retail-match means slightly longer payback.
Austin Energy VoS 9.91¢ + $2,500 rebate
Gross Cost
$28,500
After Rebate
$26,000
Annual Savings
$1,827/yr
Payback
14.2 years
25-Year Net Savings
$31,576
Includes $10,722 in property tax savings + $2,500 rebate
The combination of $2,500 upfront rebate, 9.91¢ VoS rate, and strong solar irradiance makes Austin the best solar market in all of Texas.
All calculations assume a 10 kW system at $2.85/W (NuWatt pricing), 80% derate factor, 70% self-consumption / 30% export ratio, and the best available buyback plan for each territory. Property tax savings based on county-specific rates with depreciation schedule. No federal tax credit included (Section 25D expired). Actual savings vary based on roof orientation, shading, usage patterns, and rate changes.
REPs are businesses. Their plans are designed to profit from the spread. Here is what to read carefully before signing any solar buyback contract.
Most plans charge $150 to $300 to cancel before your contract ends. A 12-month contract minimizes lock-in risk. Some plans have a 14-day rescission window after signing. Always check the Electricity Facts Label (EFL) for the exact ETF amount.
Many plans auto-renew at contract end — often at a higher rate. You typically get 30 to 60 days notice before renewal. Set a calendar reminder to shop for better rates before your contract expires.
Some plans advertise a low introductory rate that increases after 3 to 6 months. Others have tiered rates based on monthly usage. Read the full EFL and Terms of Service — not just the headline rate.
Transmission and distribution charges from your TDU are separate from your REP rate and NOT offset by solar buyback credits. These are typically $3 to $6/month plus a per-kWh delivery fee.
Buyback credits typically expire at contract end, not calendar year-end. If you have large banked credits, time your renewal to minimize loss. End contracts in September when credits are lowest.
Before your buyback plan activates, your system must pass interconnection inspection by your TDU. This takes 2 to 6 weeks after installation. During this time, you may export at $0 credit.
With the federal ITC dead, the Texas property tax exemption is now the single most valuable solar incentive available to homeowners.
When you install solar panels, your home value increases. In most states, that means higher property taxes. Texas exempts 100% of the added value from property taxes. For example, a $22,000 solar system in Harris County (2.31% tax rate) would save you approximately $508 per year in property taxes — that is $12,710 over 25 years. You must file Form 50-123 with your county appraisal district by April 30 of the year following installation. The exemption remains in effect as long as the solar device is in place and operational.
Harris County
Houston — 2.31% tax rate
$12,509
($658/yr year 1)
Dallas County
Dallas — 2.17% tax rate
$11,751
($618/yr year 1)
Travis County
Austin — 1.98% tax rate
$10,722
($564/yr year 1)
Bexar County
San Antonio — 2.23% tax rate
$12,075
($636/yr year 1)
Tarrant County
Fort Worth — 2.26% tax rate
$12,238
($644/yr year 1)
El Paso County
El Paso — 2.48% tax rate
$13,429
($707/yr year 1)
Collin County
Plano/Frisco — 2.07% tax rate
$11,209
($590/yr year 1)
Nueces County
Corpus Christi — 2.16% tax rate
$11,696
($616/yr year 1)
Lubbock County
Lubbock — 2.02% tax rate
$10,938
($576/yr year 1)
Hidalgo County
McAllen — 2.35% tax rate
$12,725
($670/yr year 1)
Missed the deadline? If you miss the April 30 deadline, you can still file a late application. Most county appraisal districts accept late filings, but you may lose the exemption for the current tax year. The exemption will apply starting the next tax year. Some counties allow retroactive exemptions for up to 2 prior years if you can prove the system was installed. Contact your county appraisal district directly to ask about late filing options.
Section 25D — the residential 30% solar Investment Tax Credit — expired on December 31, 2025 under the OBBBA (signed July 4, 2025). If you buy a solar system with cash or a loan in 2026, you receive $0 in federal tax credits. Many solar comparison websites and companies still advertise "30% tax credit" — this information is outdated and misleading.
Expired December 31, 2025. $0 for cash or loan purchases. No amount of tax liability can recover this credit — it simply no longer exists.
Still active for projects beginning construction before July 4, 2026. The third-party system owner (financing company in a lease/PPA) claims the 30% ITC. This can lower your monthly lease/PPA payment.
What this means for buyback plans: The loss of the ITC makes buyback rate optimization even more critical. Without a 30% cost reduction from the government, every cent per kWh matters more for your payback timeline.
Since most buyback rates are below retail, reducing exports and increasing self-consumption is the real optimization strategy.
A battery stores midday solar surplus for evening use when your AC is running but the sun has set. Instead of exporting at 5 to 8.5 cents and buying back at 14 to 16 cents, you use your own stored energy. The spread saved per stored kWh is 6 to 11 cents.
After Winter Storm Uri (2021), battery demand in Texas surged 300%+. Batteries provide critical backup during multi-day grid failures, beyond just economic optimization.
Tesla Powerwall 3
13.5 kWh
$12,500 installed
Enphase IQ Battery 5P
5 kWh per unit (stackable)
$10,000-$12,000 installed (2-unit system)
Franklin WholePower
13.6 kWh
$14,000-$16,000 installed
ERCOT DRRS (launching 2026) may allow battery owners to earn credits from grid services — potentially improving payback to 6-8 years.
In net metering states, oversizing makes sense because exports get full retail credit. In Texas, oversizing just produces more exports at below-retail rates. Size for 80-90% of annual usage, not 120%.
Texas Sizing Formula
Annual kWh / 1,400 (TX output per kW) x 0.85 = target kW. Example: 15,000 kWh / 1,400 = 10.7 kW x 0.85 = ~9 kW system.
Already on a solar buyback plan? Follow these steps to evaluate and switch to a better one when your contract expires.
Log into your REP account and download your Electricity Facts Label. Note your retail rate, buyback rate, base fee, any minimum usage requirement, and contract end date.
Add up your last 12 months of bills. Divide by total grid kWh consumed. This gives your effective rate including base fees, delivery charges, and penalties. Often 20-40% higher than the advertised rate.
Filter for solar buyback plans in your TDU territory. Compare at your actual post-solar usage level (often 500-800 kWh from grid), not the default 1,000 kWh. Check both retail and buyback rates.
Switch when your contract expires to avoid ETFs ($150-$300). Set a reminder 30 days before expiration. Time it for September when banked credits are lowest.
Sign up online or by phone with the new REP. They handle the TDU transfer. No service interruption. Takes 1-3 billing cycles to fully transition. Solar keeps working throughout.
Texas solar buyback rates are declining and increasingly complex. Here's when a fixed-structure TPO financing option like Propel makes more sense than REP shopping.
ERCOT wholesale prices have declined, dragging solar buyback rates down with them. Many REPs that offered 1:1 retail buyback have switched to wholesale-indexed or avoided-cost rates (3-5¢/kWh). With Propel, your payment is fixed regardless of what happens to buyback rates.
Most solar buyback plans are tied to 12-24 month REP contracts. When your contract renews, the buyback terms can change dramatically. Propel's 25-year fixed payment eliminates this uncertainty entirely.
Section 25D expired Dec 31, 2025. Cash and loan buyers get $0 from the IRS. Propel's third-party structure captures the 30% Section 48 ITC and passes the savings into your lower monthly payment — about $8,700 on a typical TX system.
Unlike a standard solar lease (where you never own the system), Propel transfers full ownership to you at year 5. After that, every dollar of savings — including any buyback credits — goes directly to you.
Common questions about solar buyback rates in the Texas ERCOT market.
All TX solar, heat pump, and energy guides.
What solar really costs in Texas without the federal tax credit.
How TX solar economics work now that Section 25D is dead.
National guide to solar loans, leases, PPAs, and PACE.
We size your system to maximize self-consumption and recommend the best buyback plan for your TDU territory and usage profile. No pushy sales — just honest numbers.