Solar Net Metering in Texas: What You Need to Know (2026)

Quick Answer

Texas has no statewide net metering policy. Instead, each Retail Electric Provider (REP) sets their own solar buyback rules. This means your experience — and savings — depend entirely on which REP you choose.

Why Texas Is Different

Most states have regulated utilities with standardized net metering. Texas is deregulated, meaning:

- Hundreds of REPs compete for your business

- Each has different solar buyback plans (or none at all)

- Rules can change when your contract renews

- Shopping around is critical

What You'll Typically Find in Texas

The Good

- Some REPs offer 1:1 buyback (you get full credit for excess power)

- Competition means deals exist if you look

- You can switch REPs if your current one has bad solar terms

The Bad

- Many REPs charge $30+/month solar fees

- You may lose distribution charges (4.5–5¢/kWh) on buyback credits

- Some REPs offer terrible rates or no buyback at all

- Credits often expire monthly (no annual rollover)

The Math Problem

Example: Your retail rate is 15¢/kWh

- You send 100 kWh to the grid

- REP credits you at 10¢/kWh (minus distribution)

- You "lose" 5¢/kWh on every exported kWh

- Plus the $30/month fee

This is why system sizing matters in Texas.

How to Find the Best Texas Solar Plan

Step 1: Know Your Options

Popular REPs with solar buyback plans (as of 2026):

- Green Mountain Energy

- Chariot Energy

- Rhythm Energy

- TXU Energy

- Reliant Energy

Note: Plans change frequently. Always verify current terms.

Step 2: Ask the Right Questions

Before signing with any REP, ask:

1. "Do you have a solar buyback plan?"

2. "What's the credit rate for excess production?"

3. "Are there monthly fees for solar customers?"

4. "Do credits roll over or expire monthly?"

5. "What happens to my rate/plan when the contract ends?"

Step 3: Do the Math

Don't just look at the buyback rate. Calculate total value:

Good plan: 1:1 buyback, no solar fee, annual rollover

Mediocre plan: 1:1 buyback, $30/month fee, monthly expiration

Bad plan: 50% buyback rate, fees, monthly expiration

System Sizing for Texas

Don't automatically design for 100% offset.

In Texas, oversizing often means:

- Giving away power at bad rates

- Paying fees on production you can't use

- Worse economics than a smaller system

Better approach: Size for 80–90% of your usage, maximize self-consumption, minimize exports.

A good solar company will model this for your specific REP's terms.

The Battery Question

Batteries make more sense in Texas than states with good net metering because:

- You keep 100% of stored power's value

- No "lost" value on exports

- Backup power during Texas grid instability

But batteries are still expensive ($15,000–$20,000). Do the math for your situation.

Texas-Specific Tips

ERCOT and Grid Reliability

After Winter Storm Uri, Texans know the grid isn't always reliable. Factor backup power into your decision — but be realistic about what batteries can actually run.

No State Incentives

Texas offers no state solar tax credit or rebate. The federal residential credit expired in 2025. Your savings come purely from reduced utility bills.

Property Tax Exemption

Texas does exempt solar equipment from property tax assessments. Your home's value may increase, but your property taxes won't go up because of solar.

HOA Rules

Texas has solar access laws that limit HOA restrictions on solar panels. HOAs cannot prohibit solar, but they can have some aesthetic requirements. Get approval in writing before installing.

Bottom Line

Texas solar can be great — but only if you:

1. Choose the right REP with good solar terms

2. Size your system appropriately for your buyback situation

3. Don't overpay for installation

4. Work with a company that understands Texas's unique market