Net metering or net billing is what the utility company offers in exchange for the energy units you produce from your solar system.
If you’re researching net metering in Texas, you’ve probably run into some confusing answers. Some sites say Texas has net metering. Others say it doesn’t. The truth sits somewhere in between, and understanding how it works can make a big difference in how much you save with solar.
At Texas Solar Professional, we help homeowners make sense of solar billing, credits, and energy buyback programs. Our experts are here to clear up the confusion and show you how to get the most out of your solar energy investment.
In simple terms, net metering is a billing system that allows solar homeowners to get credit for the extra electricity they send back to the grid. When your solar panels produce more power than you use, that energy doesn’t go to waste. What happens is, your utility company gives you a credit toward your future bills.
Here’s where it gets tricky: Texas does not have a statewide net metering law. Instead, whether or not you get credit for your excess energy depends on your local utility or retail electric provider (REP).
That’s why two homeowners living just a few miles apart can have completely different solar billing experiences.
In most states, true net metering means a 1-to-1 energy credit system. Every kilowatt-hour (kWh) of electricity your panels send to the grid earns you a full credit that offsets one kilowatt-hour you use later.
Let’s say you produce 1,000 kWh in June and use 800 kWh. You would export 200 kWh to the grid. This would mean your July bill starts with 200 kWh in credits.
That’s clean, simple, and consistent, but Texas’s deregulated energy market operates differently.
No, Texas does not have state-mandated net metering.
Because Texas has a deregulated energy market, homeowners can choose from a variety of Retail Electric Providers (REPs) instead of being tied to a single utility. Each REP sets its own rules for solar buyback rates, credit rollover, and eligibility.
That means your solar energy credits depend entirely on your provider’s plan, not state law.
Some utility companies in regulated parts of Texas (like Austin Energy or CPS Energy in San Antonio) do offer net metering–style programs, but even those follow local policies rather than statewide rules.
In Texas, solar billing is usually handled through buyback programs rather than traditional net metering. Here’s how they differ:
Understanding these terms is key to comparing plans fairly once you start shopping around.
Many Retail Electric Providers (REPs) now offer solar buyback programs to attract homeowners who invest in renewable energy. While program details change frequently, here’s an overview of some well-known options in Texas:
Provider | Buyback Type | Rate Structure | Credit Rollover | Eligibility Requirements |
TXU Energy | Net billing | Retail for use, wholesale for export | Yes | Smart meter, interconnection approval |
Reliant Energy | Buyback plan | Fixed kWh credit per month | Yes | Must be a solar customer |
Green Mountain Energy | 1:1 buyback (select plans) | Matches the retail rate | Yes | Solar production meter |
Rhythm Energy | Net billing | Competitive market-based rate | Varies | Smart meter |
Octopus Energy | Time-of-use buyback | Real-time market pricing | Yes | Smart meter + interconnection |
CPS Energy (San Antonio) | Local net metering | Retail credit up to the cap | Yes | Must live in CPS territory |
Austin Energy | Value of Solar program | $0.09–$0.10 per kWh credit | No | Austin Energy customers only |
These plans show just how flexible (and complex) Texas’s solar billing landscape is.
Let’s look at a simple example.
Suppose your 8 kW solar system produces 12,000 kWh per year, and your home uses roughly the same amount. You export about 3,000 kWh to the grid when you’re not home during peak hours.
Under a 1:1 buyback plan, you’d earn roughly $360–$400 in annual credits (assuming $0.12–$0.13 per kWh).
Under a wholesale buyback plan, you might earn closer to $150–$200 (wholesale rates average $0.05–$0.07 per kWh).
Either way, you’re cutting your bill significantly, but the difference between plans can add up over time. That’s why comparing providers is essential.
Pros:
Cons:
Texas’s open market rewards those who shop smart, and that’s where our expertise comes in.
Texas doesn’t have true statewide net metering, but that doesn’t mean you’re missing out. With competitive buyback programs and a deregulated market, you have the power to choose how your solar energy gets credited.
At Texas Solar Professional, we help you make sense of your options and design solar systems that align with your energy provider, your home, and your budget. Whether you’re looking to add panels, pair them with a battery backup, or optimize your plan for maximum savings, we’ll guide you every step of the way.
Contact Texas Solar Professional today for a free solar consultation. Let’s find the right combination of solar installation and buyback plan to help you lower your bills, protect against outages, and take full control of your energy future.
