Last Updated on March 5, 2024 by Mary Pressler
Solar Buyback Plans and Net Metering Incentives in Texas
Solar power systems are a source of clean electricity, with simple maintenance needs and a lifespan of over 25 years. The main challenge when using solar panels is managing their variable energy production: they can only generate electricity when sunshine is available, unlike a diesel generator that provides power on demand.
The electricity output of a solar power system can exceed consumption at times, especially in homes that are empty during the day. To solve this problem, many energy companies have programs that reward solar owners for surplus generation. These programs are varied, offering different terms and conditions, but their common purpose is making surplus generation valuable for the client.
What Is Net Metering?
Net metering is the most common solution to handle surplus electricity from solar panels. In Texas, there are many electricity providers who will buy back, or give you credit for your excess solar power.
- Every kilowatt-hour not consumed by your home is sent to the grid, and deducted as credit from the next power bill.
- Some retail electric providers offer full credit, paying for your extra production at the retail kWh price.
- Other providers give credit at the wholesale cost they would normally pay to large-scale generators, not the full kWh price.
Texas Net Metering Rules
Texas does not mandate net metering by law, but many Retail Electricity Providers (REPs) and municipal power companies offer the benefit. This article will provide an overview of the best solar buyback and net metering programs in the state as of 2023.
In simple terms, net metering subtracts your solar generation from your electricity consumption, and you are only billed for the difference. If your credit for solar generation is actually higher than your consumption, the rules vary depending on the energy company:
- Some solar buyback plans offer a credit that is rolled over to the next month.
- Other plans will not recognize credits for solar generation that exceeds your monthly consumption.
- In rare cases, electricity providers may even pay in cash for surplus energy.
What Are Feed-in Tariffs in Net Metering?
Feed-in tariffs or FITs are rates that apply for surplus electricity exported to the grid. Under traditional net metering, your consumption and solar generation are valued equally, but a feed-in tariff assigns a different price tag for surplus generation.
- FITs are normally lower than the retail kWh price, but utility companies may set them higher as an incentive for solar power in new markets.
- If the FIT and the retail kWh price are equal, you are getting traditional net metering.
Keep in mind that electricity providers may create hybrid programs. For example, you may find a company that gives you net metering at the full energy price when generation is below your consumption, switching to a reduced feed-in tariff above this point.
What Are Performance-Based Incentives in Net Metering?
Performance-based incentives reward you based on the total output of your solar panels, not only your surplus production. This means you get the incentive regardless of how solar generation is used: consumed onsite, or exported to the grid.
The Value of Solar (VOS) Tariff offered by Austin Energy is an example of a performance-based incentive. You get a power bill credit of 9.7 cents/kWh based on 100% of your solar generation (not only your excess production).
Best Residential Net Metering Programs from Retail Electricity Providers
In most regions of Texas, you can choose your electricity company thanks to deregulation. Some electricity plans are designed specially for consumers who own solar panels, and in many cases they can boost savings. Texas has dozens of electricity providers, but few of them have solar buyback or net metering plans:
As of 2024, the following electricity providers offer solar buyback plans in Texas:
- Almika Solar
- Amigo Energy
- Champion Energy Services
- Chariot Energy
- David Energy
- Energy Texas
- Gexa Energy
- Green Mountain Energy
- Just Energy
- Octopus Energy
- Reliant Energy
- Shell Energy
- TXU Energy
Solar Buyback Plans and Rates in Texas 2024
| Retail Electric Provider | Electricity Plans with Solar Buyback | Solar kWh Buyback Rates | Retail kWh Price for Consumption (at 1000 kWh) | Additional Conditions |
| Almika Solar | 12-Month Buyback
36 Energy Plus 1:1 Buyback |
4.9 ¢ / kWh in the 12-month plan (reduced tariff)
14.5 ¢ / kWh in the 36-month plan (same as the retail price, without TDU charges) |
20.4 ¢ / kWh
(12-Month Plan) 21.8 ¢ / kWh |
Available for home solar systems up to 25 kW, covering no more than 110% of your consumption.
Solar credits are rolled over to the next month, and they expire at the end of the contract. There is no cash-out option. |
| Amigo Energy | Mega Saver 24, 36
Basics 12, 24, 60 Truly Fixed Price 24, 36 Weekends Free 12, 24 12th Month Free Base Saver III – 12 Nights Free 12, 24, 36 Cashback 20 – 24, 36 |
The Amigo Energy website does not specify the solar buyback rate.
However, some customers mention a tariff of 3.0 ¢ / kWh in online forums. |
20.7 ¢ / kWh
(Mega Saver 24) 17.6 ¢ / kWh (Basics 12) 17.3 ¢ / kWh (Truly Fixed 24) 17.4 ¢ / kWh (Weekends Free 12) 18.7 ¢ / kWh (12th Month Free) 13.7 ¢ / kWh, higher rate below 1,000 kWh (Base Saver III – 12) 18.0 ¢ / kWh (Nights Free 12) 18.2 ¢ / kWh (Cashback 20 – 24) |
Customers must review a Sell Back Agreement provided by Amigo Energy. |
| Champion Energy Services | Champ Saver 6, 12, 24, 36
EV Saver 12 Champ Silver 24 Free Weekends 24 |
Real-time wholesale market price published by ERCOT.
Champion publishes their average historical buyback prices, by month and load zone. |
15.5 ¢ / kWh
(Champ Saver 12) 15.0 ¢ / kWh (EV Saver 12) 15.0 ¢ / kWh 15.0 ¢ / kWh |
Unused credits are rolled over to the next month, but there is no cash-out option. Any unused credits expire at the end of the contract. |
| Chariot Energy | Shine 12, 18, 24, 36
Rise 12, 18, 24, 36 |
Shine Plans: Real-time wholesale market price published by ERCOT, up to a maximum rate of 25 ¢ / kWh.
Rise Plans: Same as the retail kWh price, without TDU charges. 13.9 ¢ / kWh in the Rise 12 plan. |
15.7 ¢ / kWh (Shine 12) 21.9 ¢ / kWh (Rise 12) |
Shine plans are available for all system sizes.
Rise plans are only available for consumers who generate less energy than what they use, on average. Unused credits can be rolled over to the next month in both plans. |
| David Energy | Solar Seller 12 | The solar buyback rate is 90% of the real-time wholesale market price, published by ERCOT. | 13.2 ¢ / kWh | No solar buyback limit, and unused credits are rolled over to the next month. You get a cash payment for unused credits at the end of the plan. |
| Energy Texas | Sun-Jacinto Solar Buyback Program, can be added to all their energy plans with a term of at least 12 months:
36 Inflation Fix Ecobee Clean & Green 36 Bigger than Texas 24 The Gruene 18 Come & Take It 12 Clean & Green 12 |
Your solar buyback rate is the lesser of the following two values:
1) Real-time wholesale market price published by ERCOT. 2) Your retail kWh price (without TDU charges). NOTE: Energy Texas also has “surge pricing” intervals, where you can sell solar energy above retail price. |
17.8 ¢ / kWh
(36 Inflation Fix) 18.3 ¢ / kWh (Ecobee Clean & Green 36) 17.9 ¢ / kWh 17.7 ¢ / kWh 18.0 ¢ / kWh 18.4 ¢ / kWh |
No solar buyback limit, and unused credits are rolled over to the next month. However, there is no cash-out option.
Available for solar power systems up to 50 kW. |
| Gexa Energy | Solar Buyback 12, 24 | 12.45 ¢ / kWh (same as the retail price, without TDU charges) | 18.9 ¢ / kWh | No solar buyback limit, and unused credits are rolled over to the next month. However, there is no cash-out option. |
| Green Mountain Energy | Renewable Rewards
Solar Credit 12 Renewable Rewards Essential 12 |
Solar Credit 12:
5.307 ¢ / kWh Essential 12: 11.6915 ¢ / kWh (same as the retail price, without TDU charges) |
16.8 ¢ / kWh
(Solar Credit 12) 18.1 ¢ / kWh |
Available for solar power systems up to 50 kW.
Solar Credit 12: No solar buyback limit, and unused credits are rolled over to the next month. Essential 12: The maximum solar credit is limited by your monthly energy usage from the grid. Credits cannot be rolled over. |
| Just Energy | Simple Choice 12, 24, 36
Basics 12, 24, 60 Weekends Free 12, 24 Base Saver III – 12 Nights Free 12, 24 Just400 Advantage – 24 |
The Just Energy website does not specify the solar buyback rate.
However, some customers mention a tariff of 3.0 ¢ / kWh in online forums. |
17.5 ¢ / kWh
(Simple Choice 12) 17.5 ¢ / kWh (Basics 12) 17.3 ¢ / kWh (Weekends Free 12) 13.6 ¢ / kWh, higher rate below 1,000 kWh (Base Saver III – 12) 17.5 ¢ / kWh (Nights Free 12) 18.4 ¢ / kWh (Just 400 Advantage) |
Customers must review a Sell Back Agreement provided by Just Energy. |
| Octopus Energy | Octo 12
OctoPrepay 12 |
Real-time wholesale market price, published by ERCOT. | 17.1 ¢ / kWh
(Both plans) 13.8 ¢ / kWh if you use the Intelligent Octopus system with a smart thermostat or EV charging station |
Solar buyback credit is rolled over to the next month, with no expiration date.
You can request a cash payment for unused solar buyback credits when the balance reaches $50, or when your contract ends. |
| Reliant Energy | Solar Payback Plus 12 | 5.3 ¢ / kWh | 16.8 ¢ / kWh | Available for solar power systems up to 50 kW.
No solar buyback limit, and unused credits are rolled over to the next month. |
| Shell Energy | Solar Buyback 12, 24, 60 | Real-time wholesale market price, published by ERCOT. | 16.4 ¢ / kWh
(Solar Buyback 12) |
No solar buyback limit, and unused credits are rolled over to the next month. However, accumulated balances expire at the end of each year. |
| TXU Energy | Solar Buyback Match 12, 36
Solar Buyback Saver 12, 36 |
14.4 ¢ / kWh (Solar Buyback Match 12)
5.0 ¢ / kWh (Solar Buyback Saver 12) |
21.4 ¢ / kWh (Solar Buyback Match 12)
17.7 ¢ / kWh (Solar Buyback Saver 12) |
Unused credits are rolled over to the next month. |
*NOTE: This table provides the kWh prices offered in the Oncor service territory.
Net Metering Programs in Houston and Dallas-Fort Worth
Unlike Austin and San Antonio, where a single municipal utility sets the rules for solar power, Houston and DFW have a deregulated market where electricity consumers can choose their provider.
This section will focus on the main retail electricity providers (REP) with solar buyback programs: Almika Solar, Champion Energy Services, Chariot, Energy Texas, Green Mountain Energy, Rhythm, Shell Energy and TXU.
Almika Rooftop Solar Buyback Program
Almika offers different solar buyback prices depending on the plan chosen:
- Their 12-month plan has an energy charge of 14.90 cents/kWh, but you only get 4.90 cents/kWh for excess solar energy.
- Their 36-month plan has an energy charge of 14.50 cents/kWh, and you get the same rate for excess solar energy.
In other words, you earn around 3x more for surplus solar energy in the 36-month plan. Almika offers 100% renewable energy in all their electricity plans, complementing your on-site solar generation.
Champion Energy Solar Buyback Programs
Champion Energy has become one of the fastest growing REPs in Texas. They have several electricity plans with a solar buyback option, which also offer other benefits:
- Champ Saver – Fixed kWh price for 6, 12, 24 or 36 months.
- Champ Silver – Discounts for customers aged 60 or higher.
- Free Weekends – Free electricity periods on weekends for 24 months.
When you export surplus solar power, Champion Energy applies the real-time settlement price of the wholesale market, which changes at 15-minute intervals. This is a major advantage during summer at times of peak demand, since the wholesale price can become much higher than your retail price.
Chariot Energy Solar Buyback Programs
Chariot Energy offers two solar buyback plans in 12, 18, 24 and 36-month versions. Each plan has pros and cons:
| Electricity Plan | Pros | Cons |
| Chariot Rise | You get credit for excess solar energy at the same tariff charged by Chariot. | Only available if your solar energy generation is lower than your monthly usage. |
| Chariot Shine | Available for solar panel systems of all sizes, even large systems that generate net excess energy. | You are paid for excess energy at the wholesale kWh price, which is lower than the retail price charged to you. |
You can take advantage of the Chariot Rise plan if you have not installed solar panels yet. Your system can be designed so that monthly generation falls below your consumption, so you are not left with unused bill credits that expire. This plan is also viable if you already own a solar panel system that does not generate more energy than what your home needs each month.
The Chariot Shine plan can be a better option if you already own a large solar array that frequently generates excess production. If there is a month where your solar credit exceeds your energy charge, you can roll over the difference.
Energy Texas Solar Buyback Programs
Energy Texas follows a simple approach. They have the Sun-Jacinto Solar Buyback Program, which can added to their 12-36 month fixed-rate plans:
- Come & Take It 12
- Clean & Green 12
- The Gruene 18
- Bigger than Texas 24
- Ecobee Clean & Green 36
- Inflation Fix 36
Energy Texas pays you for excess solar energy at the real-time price or the retail price in your plan, whichever is less at any given time. However, Energy Texas has “surge pricing” intervals, where you can sell excess solar energy above the retail price.
Green Mountain Energy Renewable Rewards Program
Green Mountain Energy offers two types of solar buyback plans through their Renewable Rewards program: Solar Credit 12 and Essential 12. Each option has pros and cons, as you can see in the following table:
| Electricity Plan | Pros | Cons |
| Renewable Rewards Solar Credit 12 | There is no solar export limit and unused credits can be rolled over. | You are paid for excess solar energy at a reduced tariff, much lower than the retail price charged to you. |
| Renewable Rewards Essential 12 | You get credit for excess solar power at the same tariff charged by Green Mountain Energy. | Unused credit expires each month, and cannot be rolled over to the next billing period. |
The Essential 12 program makes sense if you have a solar panel system that is sized below your monthly consumption, so you avoid unused credits at the end of each billing period. The Solar Credit 12 plan can be a better option if you have a large solar array with surplus production, since the credits don’t expire.
The Renewable Rewards program is available if you have a bidirectional power meter and your solar energy system capacity is below 50 kW. This program is also available for wind turbine owners.
Shell Energy Solar Buyback Program
Shell Energy has the Solar Buyback program for the Oncor and CenterPoint service areas. All surplus generation from solar PV systems is credited at the real-time wholesale price, and subtracted from subsequent power bills.
- There is no solar buyback limit and unused credits are rolled over to the next month, but they expire once per year at the end of December.
- You will achieve better results if your solar panel system is sized accurately for your home consumption, avoiding unused credits at the end of the year.
TXU Energy Home Solar Buyback Program
TXU Energy offers the Solar Buyback Match and Solar Buyback Saver plans, and each option has pros and cons:
- The Solar Buyback Match plan pays you a higher rate for excess solar energy, but also charges a higher kWh price when you use the grid.
- The Solar Buyback Saver plan pays you a lower rate for excess solar energy, but also charges a lower kWh price when you use the grid.
If your solar panels are constantly generating surplus energy, the Buyback Match plan is a better option because you get more credit. On the other hand, if you tend to use most of the energy generated by your solar panels, the Buyback Saver plan is a better option – you pay less when using the grid.
Austin Energy Solar Buyback For Homes and Businesses
Austin Energy is the municipal utility of Austin, and they manage separate solar buyback programs for residential and commercial clients.
Residential energy consumers get a Value of Solar (VOS) credit for every kWh generated, at a rate of 9.91 cents/kWh. Since this incentive is for solar power generation, you get it for the full output of your photovoltaic system, not only for surplus production – the value is then subtracted from your total power bill.
Austin Energy also offers a cash rebate of $2,500 for eligible home solar systems with at least 3 kW of capacity. Multifamily buildings are also eligible for this solar rebate, with a limit of $2,500 per dwelling unit. The normal incentive rate is $0.60/watt, but nonprofits can qualify for $1.00/watt (the limit per unit applies in both cases).
Since January 2018, commercial consumers also get the VOS credit. However, there are two possible values depending on the system capacity:
| Commercial Solar System Size | Value of Solar (VOS) Credit |
| Smaller than 1 MW (1,000 kW) | 9.91 cents/kWh |
| 1 MW or larger | 7.24 cents/kWh |
In addition to getting the Value of Solar (VoS) credit, commercial electricity consumers with solar arrays can choose one of the following incentives:
- Performance-Based Incentive (PBI) – The solar PV system gets a credit for each kilowatt-hour generated, during five years.
- Capacity-Based Incentive (CBI) – The solar PV system gets an upfront incentive, which is calculated based on installed capacity.
These incentives change depending on the type of electricity consumer and the capacity of the solar array, according to the following table:
| Type of Customer | CBI | PBI |
| Nonprofit organization | $1 per watt DC, up to $482,000 | Not available |
| Commercial user with a solar installation below 75 kW | $0.60 per watt DC | 9 cents/kWh (five years) |
| Commercial user with a solar installation over 75 kW, smaller than 400 kW | Not available | 9 cents/kWh (five years) |
| Commercial user with a solar installation ranging from 400 kW to 999 kW | Not available | 7 cents/kWh (five years) |
| Commercial user with a solar installation larger than 1 MW | Not available | 5 cents/kWh (five years) |
San Antonio: CPS Energy Net Metering
CPS Energy has a net metering program for energy consumers, with the following rules:
- All electricity generation below the monthly consumption is credited at full price. For example, if a home consumes 500 kWh from the grid, and exports 450 kWh of surplus solar production, the bill is calculated for 50 kWh.
- If electricity generation is higher than consumption, the surplus is credited at the avoided cost rate. This is the price that CPS Energy would have paid to get that electricity from power plants.
CPS Energy also offers a solar rebate program for small businesses, schools and nonprofit organizations. The incentive is $0.60/watt up to 25 kW, and $0.40/watt for any capacity above 25 kW, up to a maximum system size of 100 kW. The incentive cap per project is 50% of costs up to a maximum amount of $80,000 (whichever is less).
- The rebate is increased by $0.10/watt when using local solar panels.
- The rebate is decreased by 25% when hiring non-local installers.
El Paso Electric Company Net Metering
El Paso Electric (EPE) offers net metering solar power systems up to 50 kW, which practically covers all residential systems. However, your solar PV system must be sized based on your electricity consumption during the last year before the installation, which means you cannot oversize.
Electricity is credited at the retail price, and you can reduce your power bill to a minimum of $30.25 per month. EPE will pay you for any accumulated credits whenever the balance reaches $50. If necessary, EPE will install a bidirectional power meter at no cost for the client.
Lubbock Power and Light Net Metering
Currently, Lubbock Power & Light (LP&L) is in the process of deregulating and joining ERCOT. LP&L connected 70% of their customers to the ERCOT grid in May 2021, and the remaining 30% was scheduled for interconnection in 2023.
- Once LP&L has fully joined the deregulated electricity market, Lubbock citizens will be able to choose their retail electricity provider (REP).
- In the meantime, LP&L has continued operating as their provider.
LP&L has stated they will not operate as an REP, and customers who don’t choose an REP will be assigned one. In other words, you don’t have the option of staying with LP&L as your provider. However, they will still own and operate the local grid, delivering electricity from your chosen REP.
- LP&L has a net metering program for solar power systems, but the company will no longer buy or sell electricity after deregulation.
- If you are currently on the LP&L net metering program, you must choose an REP with solar buyback plans when the market opens.
LP&L has not provided a specific date when customers will be able to choose their electricity provider. However, LP&L Spokesperson Matt Rose provided an update in September 2023, mentioning that electric choice could become available for Lubbock residents early in 2024.
Xcel Energy: Net Metering in Amarillo
Amarillo and most Panhandle cities are not connected to the ERCOT grid, and instead they get electricity from the Southwest Power Pool (SPP). Unlike the ERCOT grid, which is completely inside Texas, the SPP crosses several states and is subject to the Federal Energy Regulatory Commission (FERC). Homes and businesses in Amarillo get their electricity through the SPP grid from Xcel Energy, who offers a net energy metering program.
- Xcel Energy measures surplus production from solar panels, subtracting it from your monthly power bill at the full retail price.
- If your solar generation is higher than consumption, you get a payment for the surplus kWh at the monthly fuel cost factor published by Xcel.
- The net metering service also has a service fee of $20/month.
Xcel Energy customers in Amarillo can also accumulate Renewable Energy Credits or RECs for solar generation. You get one REC for every 1,000 kWh generated by your solar panels, and these credits can then be sold to organizations with renewable energy obligations. In simple terms, one REC is the proof of having generated one megawatt-hour (1,000 kWh). They are purchased by companies who are subject to clean energy mandates, but there are also organizations who purchase them voluntarily.
Brownsville Public Utilities Board Net Metering
The Brownsville Public Utilities Board provides electricity for nearly 50,000 residential customers and more than 6,300 commercial customers. To serve its clients, Brownsville PUB uses a combination of direct-ownership power plants and electricity purchases in the wholesale market. As of September 2023, they charge the following electricity rate for residential consumers:
- $6.94 fixed customer charge
- $0.04862/kWh up to 500 kWh
- $0.05964/kWh for consumption over 500 kWh
- Variable fuel and purchase energy charge (FPEC), $0.05658/kWh as of September 2023
- In other words, the first 500 kWh are billed at $0.1052/kWh, and the price increases to $0.11622/kWh for consumption over 500 kWh.
Brownsville PUB has a net metering program for solar panel systems and small wind turbines. Both system types must be approved by the City of Brownsville Building Permit Division, and surplus electricity is credited at the Fuel & Purchase Energy Charge (FPEC). There is an upfront fee of $100, which covers the cost of upgrading to a bidirectional power meter.
Entergy Texas: Net Metering in Beaumont
Entergy Texas provides electricity for several eastern cities, including Beaumont. The Entergy service area is covered by the Midcontinent Independent System Operator (MISO), which operates across state borders subject to FERC regulation. MISO is independent from ERCOT, which operates completely inside Texas without federal regulation.
Entergy Texas classifies solar power systems into small qualifying facilities (SQF) and large qualifying facilities (LQF) depending on their installed capacity, and this determines the net metering conditions offered by the company.
- Generators with a capacity up to 100 kW qualify for Schedule SQF.
- Generators over 100 kW qualify for Schedule LQF.
- Schedule SQF has special conditions for generators below 50 kW using renewable sources like solar energy, wind energy and biofuels.
Entergy Texas offers net metering under Schedule SQF, but surplus electricity production is credited at their avoided cost, not the full retail price. This avoided cost is calculated as an average of peak and off-peak rates, based on the latest annual filing with the Public Utility Commission of Texas (PUCT). Consumers under Schedule SQF may also qualify for capacity payments as a class, but only if their generation systems reduce capacity costs for Entergy.
- If your solar generation is higher than your consumption, and the balance in your favor is higher than $50, Entergy will send you a check.
- If your credit is lower, it will be rolled over to the next month until the balance reaches $50.
Schedule SQF has a monthly charge of $12.35 for customers with a delivery voltage below 2,400 V, and $22.65 for customers between 2.4 kV and 34.5 kV. However, customers with bidirectional power meters and renewable energy systems up to 50 kW of capacity are exempt from this charge.
Schedule LQF (>100 kW) also includes solar buyback, but Entergy Texas calculates the kilowatt-hour price paid to each customer independently. To determine the monthly avoided cost, Entergy uses energy settlement data provided by the system operator (MISO).
In June 2023, Entergy Texas introduced an online tool to submit interconnection applications. This tool has the goal of making net metering applications simpler for Entergy, and as of 2023 they are no longer accepting applications outside of the web portal.
City of Brenham Net Metering
The City of Brenham Electric Department also has a net metering program, similar to EPE. Solar generation below your monthly consumption is credited at full price, while surplus generation is credited at the avoided cost rate, which is reviewed and updated annually.
The City of Brenham municipal utility manages 119 miles of power lines and two substations, with over 6,900 electric accounts.
Final Recommendations
Solar buyback programs in Texas are as varied as the retail electricity providers in the deregulated market. Each company sets its own rules, and some offer better deals than others. If you are considering a solar PV system for your property, find an solar electricity plan that offers favorable conditions:
- Look for net metering to get full credit for surplus generation. If you don’t have access to net metering, look for the best feed-in rate available.
- Check the conditions for surplus generation: Look for a plan where you can roll-over credits for subsequent power bills.
Some regions in Texas don’t have deregulated power, and you can only buy electricity from one company. However, net metering is available in some cities with a single power company, which include Austin, San Antonio and El Paso.
Solar Buyback Programs for Commercial Properties
For information regarding net metering incentives for commercial buildings, we recommend ProStar Energy Solutions. From conception to installation, Pro Star Energy consultants can manage your corporate solar project and make sure you get the maximum payout from your panels.
Read more about commercial net metering in Texas and the United States.