Net Metering Explained (2026): How Solar Buyback Works for North Texas

Texas Homeowners

As solar power continues to grow across the United States, many homeowners ask the same question before installing panels:

“Will I get credit for the extra electricity my system produces?”

In many states, the answer comes through net metering, a policy that allows solar customers to send excess electricity to the grid and receive credits on their utility bill.

But Texas handles solar credits differently than most states.

Understanding how solar billing works in Texas is essential if you're considering installing solar panels.

For homeowners in North Texas cities such as Dallas, Frisco, McKinney, Prosper, Plano, Allen, and surrounding DFW communities, understanding how solar buyback programs work is particularly important when planning a solar installation.

In this guide, we’ll break down how solar billing works in Texas, how credits are calculated, and what homeowners should know before installing a solar system.

What Is Net Metering?

Net metering is a billing system that enables homeowners with solar panels to receive credit for the excess electricity their systems generate and send to the grid.

Here’s how it works in a traditional net metering system:

1. Solar panels produce electricity during the day

2. Your home uses the electricity it needs first

3. Extra electricity is sent back to the grid

4. Your electricity provider tracks exported energy

5. Credits are applied to your bill

In states with true net metering, the electricity exported to the grid is typically credited at the same retail price that homeowners pay for electricity.

This creates a simple 1-to-1 energy exchange between solar production and electricity consumption.

Does Texas Have Net Metering?

Texas does not have a statewide net metering policy.

Unlike states such as California or New York, Texas allows individual electricity providers to create their own solar compensation programs.

Instead of traditional net metering, Texas homeowners usually participate in programs called:

• Solar buyback plans

• Distributed generation programs

• Net billing plans

These programs still allow homeowners to receive credit for excess solar electricity, but the rules vary depending on the electricity provider.

How Texas Solar Buyback Works

Most Texas solar customers participate in solar buyback plans offered by retail electricity providers (REPs).

The process typically works like this:

1. Solar panels generate electricity during the day

2. Your home uses the energy it needs first

3. Excess electricity flows to the grid

4. A bi-directional meter measures exported energy

5. Your electricity provider applies credits to your monthly bill

These credits can help offset electricity used at night or during cloudy weather when solar production is lower.

Net Metering vs Net Billing in Texas

Most solar electricity plans in Texas operate under net billing, not traditional net metering.

Net Metering

• Exported electricity is credited at the full retail price

• Credits roll over month-to-month

• Simple one-to-one energy exchange

Net Billing (Common in Texas)

• Exported electricity credited at a lower rate

• Compensation varies by electricity provider

• Export prices may be fixed or tied to wholesale electricity markets

Many solar buyback plans credit exported electricity at wholesale or provider-determined rates, which are often lower than retail electricity prices.

Important Note About Delivery Charges in Texas

One key detail many homeowners don’t realize is that utility delivery charges still apply in Texas.

In North Texas, utilities such as Oncor charge delivery fees for electricity imported from the grid.

Even if your electricity provider offers 1-to-1 energy credit, the delivery portion of your bill may still apply when power is pulled from the grid.

Because of this, solar homeowners often benefit most when they use their solar energy directly during the day instead of exporting it all to the grid.

Texas Solar Buyback Plans Explained

Texas electricity providers offer several types of solar buyback programs.

Retail Rate Buyback Plans

Some electricity providers offer near-retail buyback plans where exported electricity receives a similar credit rate to purchased electricity.

However, these plans often include:

• Monthly credit caps

• Limits based on system size

• Restrictions preventing credits from exceeding total consumption

Wholesale Rate Buyback Plans

Other providers credit electricity based on wholesale market prices.

Wholesale electricity prices fluctuate throughout the day depending on demand.

This means:

• Credits may vary each month

• High-demand periods may produce higher export credits

Fixed Export Rate Plans

Some providers offer a fixed export rate, where every kilowatt-hour sent to the grid earns a predetermined credit.

These plans provide predictable compensation but may offer lower export rates than retail electricity.

Texas Electricity Providers Offering Solar Buyback

Several Texas retail electricity providers offer solar buyback programs for homeowners with rooftop solar systems.

Some commonly known providers include:

• Green Mountain Energy

• TXU Energy

• Rhythm Energy

• Reliant Energy

• Pulse Power

Because Texas operates a competitive electricity market, homeowners can compare electricity plans and choose the one that works best for their solar system.

However, solar buyback plans can change frequently, so it’s important to review plan details carefully.

The Role of ERCOT in Texas Solar Energy

Most of Texas operates under the Electric Reliability Council of Texas (ERCOT) power grid.

ERCOT manages the electricity market and balances supply and demand across the state.

When solar systems export electricity, that energy flows into the ERCOT electricity market, where prices fluctuate depending on demand, weather conditions, and available power generation.

Some solar buyback programs use these market prices to determine export credits.

Benefits of Solar Even Without Traditional Net Metering

Even without statewide net metering, solar energy can still provide significant benefits for homeowners across Texas.

Lower Electricity Bills

Solar panels allow homeowners to generate their own electricity, reducing the amount of power purchased from the grid.

Protection From Rising Energy Prices

Texas electricity prices can fluctuate due to fuel costs and demand.

Solar energy helps stabilize long-term energy costs.

Increased Home Value

Studies have shown that homes with solar systems often sell faster and at higher prices compared to similar homes without solar.

How to Maximize Solar Savings in Texas

Because solar export rates can vary, homeowners should design systems to maximize self-consumption.

Use Electricity During Solar Production

Running appliances like dishwashers, laundry machines, or pool pumps during the day allows you to use more of your solar energy directly.

Install Smart Energy Management

Smart thermostats and energy management systems can shift energy usage to solar production hours.

Consider Solar Battery Storage

Solar batteries allow homeowners to store excess solar power for use at night instead of exporting it to the grid.

Choose the Right Electricity Plan

Not all solar buyback programs are equal. Selecting the right electricity provider can significantly affect solar savings.

Is Net Metering Coming to Texas?

There have been discussions about statewide net metering policies in Texas, but no universal policy has been adopted.

Because Texas operates a competitive electricity market, statewide net metering is considered unlikely in the near future.

However, as solar adoption continues to grow, more electricity providers are offering solar buyback plans.

Is Solar Worth It in North Texas?

Yes — solar can still be a strong investment for homeowners across North Texas and the Dallas–Fort Worth area, even without traditional net metering.

The region offers several advantages for solar energy:

• Strong year-round sunlight

• A competitive electricity market

• Solar buyback programs from retail electricity providers

• Rising electricity costs in Texas

With proper system design and the right electricity plan, solar can significantly reduce long-term energy costs.

At Solartime, we install solar systems for homeowners across Dallas, Frisco, Prosper, McKinney, Plano, and the greater North Texas area, helping customers design systems that maximize solar production and long-term savings.

FAQ: Texas Solar Net Metering

Do solar panels send power back to the grid in Texas?

Yes. When a solar system produces more electricity than your home is using, the excess energy is exported to the grid.

Do all electricity companies offer solar buyback plans?

No. Only certain retail electricity providers offer solar buyback programs for solar customers.

Can solar eliminate an electric bill in Texas?

Not always. Because of delivery charges and varying export rates, most homeowners still have a small electricity bill.

Is solar still worth it without net metering?

Yes. With proper system sizing and the right electricity plan, solar can significantly reduce electricity costs in Texas.