Texas Solar Buyback Electricity Plans
A Texas solar buyback plan determines how a REP credits eligible electricity exported from a rooftop-solar home. “Buyback” is not one standardized product. A plan can differ in export-credit rate, settlement method, rollover rules, monthly caps, cash-out policy, and the relationship between imported and exported electricity. The correct comparison therefore looks at both sides of the meter over a full year.
Import cost and export value are separate calculations
A solar home still imports electricity whenever production is below on-site demand, such as at night or during high-load periods. It can export surplus generation when production exceeds consumption. The REP controls the retail formula used for imported energy and the contract rules used to credit eligible exports. A generous export credit can be offset by an expensive import rate or recurring fee, so the annual net result matters more than the advertised buyback number.
The buyback contract needs more than one rate field
- Is export compensation fixed, indexed, or tied to another market value?
- Is there a monthly cap on credits?
- Do unused credits roll forward, and can they expire?
- Can credits offset only energy charges or broader bill components?
- Are credits cashable or usable only on the account?
- Does the REP require a specific meter, interconnection status, or system size?
- What happens to accumulated credits when the customer switches or moves?
The TDU still controls grid interconnection and delivery
Changing REPs does not change the underlying delivery territory. The local TDU remains responsible for the meter and distribution network, and utility procedures govern grid interconnection. A solar household can still incur delivery charges when it imports electricity. Annual net generation alone can hide this because the bill depends on when the home imports, when it exports, and how the contract values each direction.
Estimate annual value from actual import and export data
Where interval or monthly import/export history is available, apply the candidate plan’s import formula to imported kWh and its buyback rules to exported kWh. Add recurring REP fees and applicable delivery costs, then calculate the annual net total. If the solar system is new, use a conservative production range instead of one optimistic forecast. The aim is to understand how the contract performs across different production and weather conditions.
A one-to-one-looking credit is not automatically classic net metering
Competitive Texas retail products can use contract-specific settlement rules. A credit described as matching an import price may still be limited by caps, expiration rules, or which bill components it can offset. Read the EFL, Terms of Service, and any distributed-generation agreement together. The specific contract controls the economics; the word “buyback” by itself does not.
Battery storage can change the best plan
A battery can shift solar energy from midday to evening, reduce grid imports during expensive hours, or reduce the volume exported to the REP. Whether that improves the household’s economics depends on the import and export rules. A simple flat-rate product may reward one strategy, while a time-of-use import tariff or market-linked export credit can reward another. Battery compatibility should therefore be treated as a plan attribute rather than an afterthought.
Compare solar plans with scenario ranges
Model a normal production year, a lower-production scenario, and a high-export scenario. If the household expects an EV, pool, or other new load, include that change because it may consume energy that previously would have been exported. A robust plan should remain understandable across those scenarios. If the economics collapse whenever exports fall slightly, the headline credit may be overstating the practical value.
Sources and methodology
Market background comes from the Public Utility Commission of Texas — Types of Electric Plans, utility-side solar context from Oncor — Residential and Small Commercial Solar, and retail-shopping context from the Power to Choose — official shopping guide. Retail buyback terms can change, so the current REP documents and applicable interconnection requirements control a specific decision.
Credit rollover rules can matter as much as the nominal export rate
A high export credit is less valuable if unused credits expire quickly, cannot offset key bill components, or are lost when the customer changes plans. Conversely, a modest credit with generous rollover can create more practical value for a home that exports heavily in spring and uses those credits during hotter months. Model the timing of credits, not only the annual export total, and read what happens to any balance at contract termination.
Monthly netting and interval settlement can produce different outcomes
The contract may calculate exports and imports using rules that are more granular than an annual net number. A home can export substantial midday solar and still import heavily after sunset. If imports are charged at one rate while exports receive another value, simply subtracting annual exported kWh from annual imported kWh can produce a misleading estimate. Use the settlement method specified by the REP and, when possible, actual interval data from the meter.
Moving or switching can strand accumulated value
Solar households should read the rules for closing an account before allowing a large credit balance to build. Some plans may not provide a cash payout or may apply limits to transferred or remaining credits. If a move or REP switch is plausible, include that risk in the comparison. A plan with a slightly lower export rate but clearer end-of-contract treatment can be preferable to one whose headline credit looks stronger but is difficult to realize.