Many providers offer a type of net metering called solar buyback programs voluntarily with some electricity plans, despite the fact that Texas doesn’t have a net metering policy. Solar buyback rates depend on your energy provider and plan, similar to the Texas electricity rates you normally pay. Texas doesn’t offer any specific tax incentives for solar panel owners. However, solar buyback plans offer a way to maximize your investment by taking advantage of billing credits and leveraging clean energy in the Lone Star State.
How Solar Buyback Programs Work in Texas
Solar buyback programs, which share a similar structure to net metering programs, are an electricity billing method for renewable energy systems, including solar panel arrays on homes and businesses. These programs aim to ensure that as much solar energy generation gets used as possible — including excess production.
Here’s how a solar buyback program works:
- When your system generates excess solar power, you can send it to the grid for electricity bill credits. Your utility company can then deliver that excess energy to grid customers for their use.
- When the output of your solar panels is low or zero, you can use electricity from the grid. You will get billed for that power at the normal rate set in your plan’s terms.
- At the end of each month, you only pay for the difference between your grid consumption and net metering credits.
Although Texas doesn’t have a statewide net metering policy, many energy providers offer solar buyback rates. Some companies buy excess solar energy at the same rate they bill customers, while others pay at a lower rate. You can also find plans that have variable rates, such as:
- Real-time wholesale market prices from the Texas electricity market
- Time-of-use rates that change depending on the hour
- Seasonal rates
Note that wholesale prices, time-of-use rates and seasonal prices are all subject to change, making it difficult to project potential savings.
How — and how much — you benefit when your solar credits exceed your monthly power bill depends on your electricity plan. Some solar credits roll over for future billing periods, whereas other plans will not let you roll over your credits from month to month. Also, some buyback plans won’t let you earn more credits than your energy consumption. Your buyback credits typically won’t cover the cost of your utility delivery fees, so you’ll likely end up owing some money, regardless of how much energy your panels generate.
Whether you live in a deregulated area of Texas managed by the Electric Reliability Council of Texas (ERCOT) or in a regulated region, you can access solar buyback offerings. Many regulated utility companies offer solar buyback options, including Austin Energy and CPS Energy.
The Top Solar Buyback Programs in Texas
According to our findings, Gexa Energy has one of the best solar buyback rates in Texas. Provided you have a solar panel and battery system, you will pay the same rate per kilowatt-hour that you pay for the energy you use. If you want a solar buyback plan that doesn’t require a solar battery, several other providers offer plans for your solar panel system.
When shopping for Texas solar buyback plans, pay attention to the energy rate you’ll pay per kilowatt-hour and the energy rate you’ll receive for excess solar power. Balancing both of these rates can help improve the value of solar panels for your home or business.
Note that all of the plans below include transmission and distribution utility fees, also called TDU charges, for delivering power to your home.
Below are some of the top energy providers for solar buyback plans.
- Gexa Energy
- Rhythm Energy
- TXU Energy
- Green Mountain Energy
Gexa Energy
Gexa Energy offers two solar buyback plans: Solar Export 12 and Battery Benefits 12. Both plans have a 12-month contract with fixed prices and an early termination fee (ETF) of $150.
If you have a month when your buyback credit exceeds your energy bill, you can accumulate the difference and subtract it from future bills. Both plans are 100% renewable, so all the electricity you use from the grid comes from clean sources.
The Gexa Solar Export 12 plan is for solar system owners and features the following charges and solar buyback rates.
The Battery Benefits 12 has a higher buyback rate than the Solar Export 12 plan, but you are only eligible if your solar system includes a battery bank. Also, the Battery Benefits 12 plan charges a higher price when you use grid power.
Rhythm Energy
Rhythm Energy offers the PowerShift Solar Buyback 12 plan, which offers 100% renewable electricity and different rates, depending on the hour. This policy applies to the kilowatt-hour price and the solar buyback rate you receive. This plan has a 12-month contract and a termination fee of $20 for every month left in your contract after you cancel.
Below is a breakdown of the energy charge and buyback charge from the PowerShift Solar Buyback plan. Note that this plan includes a high base charge and three time zones with different rates: off-peak, on-peak and ultra on-peak.
This plan is available for residential consumers with solar systems up to 20 kilowatts (kW) of capacity. Note that you may get a low, off-peak rate when solar panels produce the most energy, while the plan offers higher rates at times when production may be low or zero. Because of the timing of the best buyback rates, it may benefit you to use a solar battery to store energy generated during the day that you can then sell in the evening or at night when buyback rates are highest.
TXU Energy
TXU Energy offers a Solar Buyback Match 36 plan, which offers a high solar buyback rate and 100% renewable energy when you use the grid. If you have any unused credits available at the end of a billing period, you can apply them to future bills. Like the Gexa offering, the Buyback Match 36 plan offers a competitive, one-to-one buyback rate, which is very generous.
However, this plan has a 36-month term and a $395 ETF.
Green Mountain Energy
A benefit of Green Mountain Energy is its balance of affordable grid electricity rates and fair buyback rates when you sell excess solar production to the utility. Green Mountain Energy has two buyback plans available for either 12 or 24-month terms: Renewable Rewards Essential and Renewable Rewards Solar Credit. The plans offer 100% renewable energy when you use the grid. Both plans allow a solar system size of up to 50 kW. The ETF is $150 for 12-month contracts and $295 for 24-month contracts.
The Renewable Rewards Essential plan offers a better buyback rate, but you lose any unused credits at the end of the billing period.
The Renewable Reward Solar Credit plan has a lower solar buyback rate, but you can save unused credits at the end of each billing period. The table below shows fees and buyback rates for the 24-month plan.
How To Choose the Right Solar Buyback Plan
When comparing the best solar buyback plans, the right option for you depends on your energy usage habits, your solar system and other related factors. Here are three questions to help you choose the best net metering plan for your home.
1. Do your solar panels generate plenty of surplus electricity?
If you have a large solar system that constantly sends excess energy to the grid, a plan with a high buyback price will increase your bill credits. On the other hand, if your home uses most of your solar production with minimal grid export, a high buyback tariff becomes less important. In this case, you can look for a plan with predictable energy costs when the sun isn’t shining.
2. Do you have a combined solar panel and battery system?
Some plans have solar buyback rates of over 20 cents per kWh if you can store energy in a battery and send it to the grid during peak hours. These rates are not available for stand-alone solar panels because peak demand happens in the evening when a solar system is no longer productive. If you own a solar battery or plan to install one, you can benefit from a plan with high buyback rates after sunset by storing energy generated during the day and selling that power back to the grid at night when buyback rates are high.
3. Do you use a lot of electricity at night?
It may feel tempting to pick the electricity plan with the highest solar buyback rate, but you should also consider the electricity rate paid when solar panels don’t produce power. This consideration is especially important if your home has a high energy usage at night. Paying a high kilowatt-hour price at night can quickly negate any savings achieved with solar buyback during the day. For example, if you work from home and use most of your solar energy production directly, paying a low rate at night is more valuable than getting a high buyback rate during the day.
Tips for Getting the Most Out of Buyback Programs
You can achieve maximum benefits from a solar buyback plan by taking advantage of its pricing structure, so your strategy will likely change based on whatever plan you’ve signed up for. We recommend reading the electricity facts label (EFL) before signing up for any energy plan.
You may want to avoid exporting large amounts of solar electricity at a low buyback rate because you will lose most of your power’s value. Also, we suggest avoiding high consumption of grid electricity when rates are high, which can negate the savings you achieve with solar.
Even if a solar buyback plan looks good on paper, make sure you can leverage its features. For example, if you have a stand-alone solar system with no battery storage, you may not benefit from a plan with high buyback rates after sunset. This plan type wouldn’t suit your needs because your solar panels don’t generate any power after sunset, and you won’t be able to take advantage of the generous buyback rate.
Understanding Program Limitations
Because Texas does not have a state net metering policy, each electricity provider can set the terms and conditions of its solar buyback program. Solar buyback plans often have rules that limit your power bill credits, such as:
- Monthly buyback limits: Some electricity plans limit solar credits to an amount equivalent to your monthly energy consumption. For example, if there is a month where you use 800 kWh of energy from the grid, your solar credit is also limited to 800 kWh.
- Monthly rollover rules: Many solar buyback plans let you accumulate monthly credits that exceed your energy consumption. You can roll over unused credits month-by-month. Remember that some plans have an annual accumulation limit, meaning your credits expire every 12 months. You may find plans that pay you in cash for accumulated credits, but this is rare based on our research.
- Ongoing rate changes: Some energy plans offer a fixed solar buyback rate for several years, but others have variable rates. If you want predictable solar savings, look for a plan with a fixed buyback price.
Frequently Asked Questions About Solar Buyback Programs
Can you sell back to the grid in Texas?
Yes, you can sell energy back to the grid in Texas — but only if you choose an electricity plan that includes a solar buyback rate. Gexa Energy, Rhythm Energy, TXU, Green Mountain Energy and Octopus Energy offer solar buyback plans.
Can you get free solar panels in Texas?
No official programs in Texas offer free solar panels, either from the state government or from local electric companies.
What is the best energy provider for solar buyback plans?
Gexa Energy and Green Mountain Energy are among our top picks for solar buyback plans. However, the best energy provider for you will depend on your energy usage and how much excess power your solar panels generate. For example, some plans favor solar systems that have battery storage over systems with only solar panels. Compare products and services from various energy providers to find the right fit for you.
What is a solar buyback program in Texas?
A solar buyback program is a specific type of electricity plan that is essentially a type of net metering plan. With a solar buyback program, your electricity company bills you when you use electricity from the grid but also gives you credits when you send back excess energy generated by solar panels. At the end of each billing period, your solar buyback credits get subtracted from your energy costs, potentially saving you money.
How We Rate and Review Texas Electricity Companies
With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help you cut through the complexity and find the best electricity plan for your needs, whether you’re moving to Texas or looking to switch providers.
We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on cost, bill predictability, customer satisfaction, brand trust, and plan features. Here’s how those core factors weighed into our ratings:
- Plan features (33%)
- Customer satisfaction and brand trust (27%)
- Plan rates and pricing (20%)
- Energy bill predictability (20%)
