Resources > Net metering in Texas

Net metering in Texas

• Factsheet

April 28, 2024

What is net metering?

Net metering is the policy that allows people with solar to get a credit on their electric bill for the energy they produce from their system.

Earning bill credit for excess solar generation in Texas

When your solar system produces more electricity than your home uses, the excess electricity is sent out through your electric meter. Your neighbors use this extra electricity.

In most places, solar homeowners receive a credit on their monthly utility bill for this excess electricity their system produces. When the excess generation is credited at the same rate as the customer’s consumption, this is known as net metering. It ensures solar homeowners receive fair credit for the electricity their systems generate and helps them see a return on their investment into solar.

Net metering policies are enacted at the state level. Thirty-eight states require utilities to offer net metering. Texas is not one of them. 

However, Texas solar owners have other options to get value from their surplus generation.

If you live in a municipal-owned or rural electric cooperative utility service area, check with your city or cooperative about their solar buyback program. Many municipal utilities and electric cooperatives offer credit for excess generation. If yours does not, or if you are unsatisfied with the rates, these publicly managed utilities should be responsive to your concerns. Check out these resources for advocating within a muni or co-op.

If you live in an area where you must choose your Retail Electricity Provider (REP), you may have several buyback options available.

Solar buyback plans: considerations if you can choose your Retail Electricity Provider

Some Retail Electricity Providers (REPs) offer solar buyback plans that credit solar homeowners for the electricity they generate. Current rates and terms vary from provider to provider. The best one for you will generally depend on three factors:

1. How much electricity you import from the grid
2. How much surplus solar electricity you export back to the grid
3. When (what time of day) you import/export electricity

Solar United Neighbors has partnered with Texas Power Guide to help current and prospective solar owners find the plan that maximizes their array’s value. If you reside in the Centerpoint or Oncor utility service areas, request your free custom analysis now.

We’ve helped thousands of people select the right plan to maximize their solar savings. When we analyzed the results we found that solar homeowners can save $390 on average if they select the right plan. While many solar homeowners found that a 1:1 or NEM-like buyback plan saves them the most money, unfortunately those plans are no longer available. Sign our pledge and stay in the loop about our advocacy work to get fair credit for local solar. With current rates, most solar homeowners on a plan that complements their system can see a simple payback in 15 years. To find a plan that’s right for you, request a free report from Texas Power Guide.