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Understanding Solar Buyback Plans in Texas

June 17, 2026Get Electricity StaffElectricity Guide

Understanding Solar Buyback Plans in Texas

Installing rooftop solar panels is a popular way for Texas homeowners to combat high electric bills and reduce grid dependence. With over 230 sunny days a year, Texas residential solar arrays regularly produce more electricity than a home consumes during the middle of the day.

In many states, utilities are required by law to credit you for this excess power at the retail rate (a policy called Net Metering). However, because the Texas retail market is deregulated, there is no state mandate for net metering.

Instead, retail electric providers (REPs) design their own voluntary Solar Buyback Plans. Because buyback terms vary wildly between providers, choosing the wrong plan can significantly reduce your return on investment.

In this guide, we explain how solar buyback plans work in Texas, compare the different payout structures, and outline how to choose the best plan for your system.

Solar Buyback Structure Comparison

Below is an interactive comparison detailing the credit values, rollover rules, caps, and recommended hardware configurations for the primary solar buyback models in Texas:

Detailed Buyback Structures

1. 1-to-1 Net Metering (Flat Credits)

  • How It Works: The provider credits you the exact same rate for outflows that they charge you for inflows (e.g., 14¢ per kWh imported, 14¢ per kWh exported).
  • The Catch: These plans often come with high monthly base fees or restrict credits from rolling over to subsequent months.
  • Best For: Homeowners with systems sized to match their exact usage, or those without batteries.

2. Real-Time Wholesale Spot Pricing

  • How It Works: The provider credits your exported power based on the immediate real-time wholesale spot price of electricity on the ERCOT grid.
  • The Catch: During the sunny afternoon when your panels export the most, wholesale prices are often very low (2¢ to 3¢ per kWh). However, during grid emergencies, prices can spike to $9.00 per kWh, rewarding you handsomely.
  • Best For: Homeowners with smart battery storage who can hold power and export during evening peak price hours.

3. Capped Credit Plans

  • How It Works: The provider credits exports at a flat rate, but you can only offset up to your total monthly import charge. If you export more than you import in a month, the excess credit is forfeited (you cannot receive a cash refund or build a positive balance).
  • Best For: Homes with smaller solar arrays that rarely overproduce on a monthly basis.

How to Audit and Choose a Solar Plan

To maximize your solar savings, do not just choose the plan with the highest advertised export rate. Review these contract details carefully:

  1. Avoid Unhedged Minimum Fees: Some buyback plans carry $20 monthly base fees that eat away at your solar credits.
  2. Verify Rollover Policies: Ensure unused credits roll over from spring to the hot summer months when your AC usage spikes.
  3. Compare TDU Pass-Transmission Credits: Check if the export credit covers both the energy charge and TDU delivery charges, or only the bare energy rate.

Optimize Your Home Energy on GetElectricity

GetElectricity helps solar-equipped homes make informed comparison choices:

  • True Net Calculation: We evaluate how your home's import/export profile matches current solar plan rate structures.
  • Hidden Fee Filtering: We flag base charges and credit caps in our search results so you can see the real net payout.
  • No-Friction Transitions: We help you switch plans seamlessly without disrupting your smart meter data collection.

Maximize the value of your sunshine. Compare transparent solar buyback plans on GetElectricity today.