Texas Doesn’t Have “Net Metering”—So What Are Your Options?
In some states, homeowners with solar get full credit for extra electricity sent to the grid through a system called net metering. But Texas doesn’t have a statewide net metering policy.
Instead, in deregulated areas like Dallas–Fort Worth, homeowners can shop for their own electricity plan—and some of those offer what are called solar buyback plans.
These plans allow you to get credit for the extra electricity your system exports, but the value of those credits depends on the terms of your electricity plan. That makes choosing the right plan just as important as choosing the right solar system.
Thinking about going solar in Texas?
Schedule a free consultation at EagleMountainSolar.com to find out how to maximize your savings with the right buyback plan and system design.
What Is a Solar Buyback Plan?
A solar buyback plan is an electricity plan that compensates you for the excess energy your solar panels send back to the grid.
However, not all plans are created equal. Most fall into one of four categories:
1:1 Retail Buyback (Best Option if Available)
- You receive a full retail credit for every kilowatt-hour (kWh) you export, up to the amount you use.
- If you use 1,000 kWh in a month and export 1,000 kWh, you could pay close to $0 for energy usage.
- Great for homes that produce close to what they consume (100% offset).
⚠️ Wholesale or Avoided Cost Credit
- You’re paid a lower rate (sometimes only 2–6¢ per kWh) for exported solar power, regardless of your usage.
- These plans are often best if your system is smaller and designed to avoid excess exports.
❌ No Buyback
- You receive no credit for excess solar production.
- May be the lowest-cost plans for energy purchased from the grid but not ideal if your system produces significant surplus power.
Free Nights Plan
- You are charged much higher during the day and have free energy from around 9PM-6AM but varies by plan.
- No buyback typically
Understanding Charges You’ll Still Pay
Even if your system is perfectly sized and you export as much power as you import, you’ll still get a small electric bill. That’s because of unavoidable fixed charges, including:
Basic Customer Charge
- A flat monthly fee you pay just to stay connected to your provider.
- Typically ranges from $5 to $15/month depending on the plan.
⚡ TDU Delivery Charges (e.g., Oncor in DFW)
- TDU = Transmission and Distribution Utility.
- Even if your provider gives you full credit for solar, your TDU (like Oncor) charges a delivery fee for the power you use at night or when solar isn’t producing.
- This can be around 3–5¢ per kWh, plus a small fixed fee.
So even with a 1:1 buyback plan, you’ll likely pay $10–$25/month on average just in base and delivery charges.
Choosing the Right Plan Based on Your Solar Offset
Your solar offset is how much of your home’s electricity usage is covered by solar. That percentage can help determine which type of plan makes the most sense.
✅ 100% Offset – Choose 1:1 Buyback (If Available)
- Matches your production to your usage
- Best savings if you export and import roughly equal amounts
- Just pay the TDU + customer charge
⚡ 40–70% Offset – Consider Low-Rate, No Buyback Plans
- Designed to consume most of your solar on-site
- Avoid exporting to the grid since it isn’t credited
- Benefit from low rates and avoid high fixed fees
EV Owners or Battery Users – Explore Free Nights or Time-of-Use
- Some plans offer free or discounted nighttime energy
- Combine with solar to charge a battery or EV at night
- Can dramatically reduce reliance on grid energy
Can I Change My Plan After I Go Solar?
Yes! In Texas’ deregulated markets, you have flexibility.
You can:
- Switch providers when your contract ends
- Sometimes switch early by paying a cancellation fee
- Work with Eagle Mountain Solar to select and re-evaluate your plan
We help every customer:
- Choose a plan that fits their system size and usage habits
- Reassess energy plan options annually
- Stay updated as utility and market rules change
What If I’m in a Regulated or Co-op Area?
If you’re in a municipally owned utility or electric co-op—like Garland Power & Light, Tri-County Electric, or Wise Electric—you don’t get to choose your provider.
In these areas:
- There may be no buyback at all
- Or you may receive only a wholesale export credit
- Fixed monthly charges may be higher
For these customers, we often recommend:
- Smaller systems designed for self-consumption
- Battery storage to reduce grid reliance and export losses
Why Buyback Plans Matter — But Aren’t Everything
A good solar buyback plan can enhance your savings—but it isn’t the whole picture.
Even without buyback:
- You save by using solar directly
- You gain energy independence
- And you protect against rate increases
Leases and Power Purchase Agreements (PPAs) can still provide monthly savings even without a strong buyback, because the leasing company claims the federal tax credit and factors that into a lower monthly cost.
Quick Summary: Solar Buyback in Texas
| Offset | Best Plan Type | Notes |
|---|---|---|
| 90–100% | Retail Buyback | Only pay base & delivery fees |
| 50–70% | Low-Rate, No Buyback | Avoids wasting exports |
| 30–50% | Free Nights / Time-of-Use | Stack savings with storage or smart usage |
| Regulated Areas | Custom Strategy | Evaluate storage + smaller systems |
Ready to Go Solar the Smart Way?
Your solar savings depend not just on the panels—but also on the electricity plan you choose.
At Eagle Mountain Solar, we help you:
- Design the right system size
- Choose the ideal plan for your goals and location
- Re-evaluate your plan over time to keep savings high
Schedule your free solar consultation at EagleMountainSolar.com and get a customized savings report with the best options for your home.
