Texas buyback is a contract term, not a universal promise
In the competitive electricity market, your retail electric provider sets the terms for buying exported solar energy. The PUCT's consumer guidance makes the key point: a provider may purchase excess distributed renewable generation, but the offer is not a single statewide entitlement. Municipal utilities and electric cooperatives use their own tariffs and programs.
Start by separating imports, self-use, and exports
- Imported electricity comes from the grid when the home needs more than the panels are producing.
- Self-consumed solar powers the home directly and can avoid some electricity purchases.
- Exported solar flows to the grid and receives the plan's stated credit, if any.
Do not value all solar production at the advertised retail rate. The honest model uses the retail cost avoided for self-consumption and the actual plan credit for exports, while leaving fixed charges and non-avoidable fees in the bill.
Eight buyback terms to compare
- Export-credit rate and whether it is fixed, indexed, or variable.
- Whether the credit includes or excludes delivery charges.
- Monthly cap, annual cap, or a limit tied to imported usage.
- Whether unused credits roll over, expire, or are paid out.
- Any monthly base charge or solar-specific fee.
- Contract length, early termination fee, and renewal treatment.
- Whether battery exports receive the same credit as solar exports.
- Whether the plan requires a specific meter or completed interconnection approval.
The “1:1 buyback” phrase is incomplete
Ask: one-for-one with which charge? A provider may match only the energy charge while excluding TDU delivery charges and fixed fees. Another may credit a market-indexed amount. The label sounds simple; the Electricity Facts Label, Terms of Service, and buyback agreement control.
Interconnection comes first
Your local TDU, municipal utility, or electric cooperative owns the delivery system and must approve grid interconnection. The installer should identify the utility, submit the required application, and explain when the system may be energized. A retail buyback enrollment does not replace utility permission to operate.
When a battery helps—and when it may not
A battery can move solar production into the evening, increase self-consumption, and provide configured backup power. Its financial benefit depends on the gap between avoided import cost and export credit, efficiency losses, usable capacity, warranty limits, and price. If export credit is already strong, the battery's bill-savings case may be weaker even when its backup value is real.
Solar does not replace electricity-plan shopping
You still need a retail plan that fits your imports, exports, fixed charges, and contract timing.
Compare quotes without confusing a quote with a verdict
Before signing anything, compare at least three written proposals on the same basis and read the financing agreement separately from the installation agreement.
See the quote-comparison options
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Primary source: Public Utility Commission of Texas homeowner solar guidance. Plan terms change; verify the current Electricity Facts Label, Terms of Service, buyback agreement, and utility interconnection requirements.
Frequently asked questions
Does Texas have statewide net metering?
Texas does not impose one uniform retail net-metering offer in competitive areas. Export compensation depends on the retail electric provider and plan, while municipal utilities and electric cooperatives set their own programs.
Can I choose one company for electricity and another to buy my excess solar?
In a deregulated area, the Public Utility Commission's guidance says excess distributed renewable generation is sold to the retail electric provider that serves the home. Check that provider's specific plan and agreement.
Why can I still receive an electric bill after producing more than I used?
Imports and exports can be valued differently, and fixed charges, delivery charges, non-bypassable fees, credit caps, or credit expiration can remain even when annual generation is high.
Do I need an interconnection agreement?
Yes. A grid-connected system must follow the applicable utility interconnection process before it can safely operate and export power.
This is general consumer information, not tax, legal, engineering, or financial advice. Verify current program rules and final contract terms before spending money.