If you’re purchasing solar in Texas, your energy needs go beyond selecting a solar installation provider—you also need to pair it with the right utility plan to maximize your savings.
When you install solar panels on your home, they generate electricity only when the sun is shining (obviously). However, if your system generates more electricity than you’re using, the excess is sent back to the grid, unless you have a battery system. This is where your utility company, or Retail Electric Provider (REP), comes in. The REP can either buy this excess electricity from you—at the rate they set in your contract—or not, depending on the plan you have. At night or during cloudy weather, when your solar panels aren’t producing electricity, you’ll need to rely on the grid to meet your energy needs.
The key is finding a utility plan that maximizes your savings, based on how much solar energy you generate and how much grid electricity you still need. Without this, your plan for solar is incomplete in Texas.
In this post, we’ll explore three key types of utility plans for solar customers that we believe make the most sense for our customers in the DFW area:
- 1:1 Retail Buyback Plans for homeowners aiming for 100% solar offset.
- Nights Free Plans for those with electric vehicles (EVs) or the ability to shift energy usage to nighttime hours.
- Low-Rate Plans without Buyback for those offsetting just a small portion of their energy with solar.
Let’s break down each option and highlight the some utility companies currently offering these plans in 2024. We also recommended looking for updated plans through the Texas Power Guide.
1:1 Retail Buyback Plans: Achieving 100% Offset with Solar
If your goal is to offset 100% of your electricity usage with solar, a 1:1 retail buyback plan is likely the best option. With these plans, the energy you produce but don’t use during the day is sent back to the grid. In return, the utility company credits you at the full retail rate—essentially paying you the same amount per kilowatt-hour (kWh) as they charge you for energy consumption. This kind of plan maximizes the value of your solar production and allows you to achieve true energy independence.
This is the most common nationwide and most recommended.
How It Works:
- 100% Offset Sizing: You’ll need a solar system sized to meet your annual electricity usage, accounting for any seasonal variations.
- You Overproduce During the Day: Since you’re credited at a 1:1 rate, your energy doesn’t go to waste when generating more power than you use during the day. You’ll use the stored credits at night.
- Savings: You’re billed only for the difference between what you produce and consume. If you produce more than you use, your credits can roll over to future months, offering an additional buffer for the winter or cloudy seasons. (keep in mind you will need to stay within the production of your solar system so size wisely)
Utility Companies Offering 1:1 Buyback Plans:
Green Mountain Energy – Their Solar Buyback Plan offers a 1:1 credit for excess solar production. Customers are credited at the full retail rate for every kWh of energy sent to the grid.
Ambit Energy – Ambit also offers retail value for your overproduction.
TXU Energy – TXU offers a Renewable Buyback Plan, where you get credit at the retail rate for every kWh your system sends back to the grid.
Nights Free Plans: A Good Fit for EV Owners or Those Who Can Shift Load
For homeowners who can’t quite reach 100% solar offset or who have an electric vehicle, a nights-free plan could provide an ideal solution. These plans charge you nothing for energy usage during certain nighttime hours, while you pay higher rates during the daytime. If your solar system offsets around 60% of your energy needs during the day, and you shift your energy consumption to nighttime, you could achieve significant savings.
This is great for EV owners as well because they could charge their cars at night while the energy is free.
How It Works:
- 60% Offset Goal: You’d ideally size your solar system to cover most of your daytime consumption, but not the entire load.
- Free Energy at Night: Some utility companies allow for free electricity during off-peak hours (typically 9 p.m. to 6 a.m.). This can be great for homeowners who can program appliances like dishwashers, washing machines, and even EV chargers to operate during these hours.
- Best for EV Owners: If you charge your EV overnight, this type of plan can save you a significant amount of money, reducing or even eliminating the cost of charging.
Utility Companies Offering Nights Free Plans:
TXU Energy – TXU’s Free Nights & Solar Days Plan offers free energy from 8 p.m. to 5 a.m., and solar offsets your daytime consumption.
Reliant Energy – Reliant offers a “Truly Free Nights” plan where energy used from 8 p.m. to 6 a.m. comes at no cost, which can be paired with solar during the day.
Just Energy – Just Energy’s “Nights Free Plan” provides free electricity from 9 p.m. to 6 a.m., which could be paired effectively with a solar system designed for daytime consumption. They even can buy back excess at a very low rate.
Low-Rate Plans Without Buyback: When Solar Only Offsets 40-50%
Not all homeowners aim for full energy independence with solar. Some may have smaller solar systems that only offset 40-50% of their energy needs. In this case, a utility plan with the cheapest possible rate—and no buyback agreement—could be the best option. With this strategy, you rely on your solar system to lower your daytime consumption and then find the lowest rate available for any additional electricity needs.
How It Works:
- 40-50% Offset Goal: Your solar system covers part of your energy use, typically during peak sunlight hours, but you still rely on grid electricity for a significant portion of your needs.
- Focus on Rate Per kWh: Since you aren’t sending much energy back to the grid, finding the lowest electricity rate becomes your priority.
- No Buyback Plan: You don’t need a plan that includes energy buyback because the size of your system isn’t large enough to produce significant excess energy.
Utility Companies Offering Low-Rate Plans:
Gexa Energy – Known for offering some of the lowest rates in Texas, Gexa’s plans are great for homeowners who just need low-cost electricity to cover their non-solar hours.
Discount Power – Discount Power offers some of the cheapest per kWh rates in the DFW area, making it an appealing option for homes with smaller solar systems.
Pulse Power – Pulse Power’s straightforward rate plans are designed for cost-conscious homeowners, with competitive pricing and no frills.
Conclusion: Choose a Plan That Aligns With Your Solar Goals
When selecting a utility plan for your solar-powered home in Texas, your energy goals will dictate the best choice. Whether you’re aiming for 100% energy independence with a 1:1 buyback plan, optimizing for nighttime use with an EV, or simply looking for the lowest rate possible, there’s a plan to fit your needs.
- For full offset, the 1:1 buyback plans from Green Mountain, Ambit, and TXU are excellent options.
- If you’re shifting usage to nighttime, especially with an EV, nights-free plans from TXU, Reliant, or Just Energy can offer substantial savings.
- For those with partial offset systems, focusing on low-rate plans from Gexa, Discount Power, or Pulse Power will likely result in the best financial outcome.
Be sure to explore the available plans and match your solar system’s performance to the right utility rate for your lifestyle and energy usage patterns.
And if you would like to get a free consultation to go over what your goals should be, contact us here!
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