Solar Buyback Plans in Texas

What solar buyback is

If you have rooftop solar and you're in a deregulated Texas area, the electricity your panels send back to the grid needs a commercial relationship. Solar buyback plans are residential electricity plans that pay (or credit) you for that excess generation.

Texas doesn't have a statewide net metering law. Each REP offers its own buyback terms. Some pay dollar-for-dollar against the retail rate. Some pay a lower "avoided cost" rate. A few don't pay at all — they zero out your excess and that's it.

The three main buyback structures

1. 1:1 net metering (rare, best for solar owners)

Every kWh your panels export to the grid reduces your next bill by exactly one kWh at the retail rate. If your retail rate is 13¢, your export is valued at 13¢. The goal every solar owner wants.

2. Avoided-cost buyback (most common)

The REP pays for exports at a lower rate — usually the wholesale generation rate, around 4-7¢/kWh in most months. You still save on the kWh you use directly from your panels (no import needed, no bill), but exports earn less than they offset your next imported kWh.

3. "Solar friendly" with zero export value

The REP accepts that your meter runs backward when you export, and the net kWh is what you pay. But there's no separate payment or credit for exports — if you produce more than you use over a billing cycle, the excess is free to the grid. Only reasonable if you rarely over-produce.

Things to watch for in the plan

• Higher-than-normal headline rate. Some "solar buyback" plans compensate for their generous export rate with a higher import rate. If you rarely export, this can cost you more than a regular plan.
• Monthly export caps. Some plans cap how many kWh of exports they'll credit per month. If your system is large, you could over-produce into a cap.
• Monthly true-up vs. rollover. If exports exceed imports in a month, does the credit roll to next month (good), or zero out (bad)?
• Minimum usage fees. If your solar covers most of your daytime use, you might drop below a 1,000 kWh monthly threshold and get hit with a minimum usage fee that eats into savings.

The honest math

A typical Texas solar system (8-10 kW) in a 2,000 sq ft home generates 11,000-15,000 kWh/year. If the home uses 15,000 kWh/year:

• Direct self-consumption (panels offset imports): ~8,000 kWh
• Net imports (evening, winter): ~7,000 kWh
• Exports (daytime overproduction): ~4,000 kWh

On a 1:1 buyback plan at 13¢/kWh: exports worth $520/year, plus $1,040 from self-consumption.
On avoided-cost buyback at 5¢: exports worth $200/year, plus $1,040 from self-consumption.

The difference ($320) matters. If the 1:1 plan has a 3¢/kWh higher import rate, the advantage evaporates. Always compare the total annual math, not the marketing.

How to choose

1. Get your annual generation estimate from your solar installer or your inverter app.
2. Get your annual consumption from your last 12 months of bills.
3. Calculate net exports (generation − consumption, if positive) and net imports (if consumption > generation).
4. Score each plan: (net imports × import rate) − (net exports × buyback rate) + any base/minimum fees.

The plan with the lowest score wins. Ignore marketing labels.