Guide
Net metering Texas: solar buyback plans and how exports get paid
Updated
Unlike most states, Texas never mandated a set credit rate for exported solar power. Exports earn whatever your electricity plan pays, so choosing it is part of the purchase.
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- Installed cost of $2.50-$3.20 per watt before incentives, typical 2026 Texas quotes for rooftop systems. Your quotes will vary with roof, equipment tier and installer; always compare several (see our table).
- System sizing from your bill assumes a typical Texas residential rate of about 15 cents/kWh (EIA Electric Power Monthly). It also assumes typical Texas production of roughly 1,500 kWh per kW per year (PVWatts (NLR, formerly NREL)). Both are typical figures, not your meter.
- The 30% figure is the federal residential clean energy credit under Section 25D (irs.gov). 2025 federal legislation ended this credit for property placed in service after December 31, 2025.
- As the law stood at our updated date, most systems bought in 2026 do not qualify. The toggle defaults to off; verify at irs.gov and with a tax professional before applying it.
- Battery storage adds a typical $10,000-$15,000 installed for a home battery in the 10-15 kWh class, 2026 quotes; larger backup setups cost more.
- Texas exempts from property tax 100% of the appraised value a solar installation adds to your home, under Tax Code Section 11.27. You must apply for the exemption (Texas Comptroller).
- Texas has no state income tax, so there is no state solar income tax credit. Local utility rebates (for example some municipal utilities and co-ops) exist in places and change often, check your utility directly.
Net metering in Texas: none statewide
Texas has no statewide net metering requirement: the Public Utility Commission of Texas does not oblige providers to buy your exports at retail rates (puc.texas.gov).
In the deregulated ERCOT market, you buy and sell power through a retail electric provider, and providers compete with optional solar buyback plans. Outside deregulation, municipal utilities and co-ops (Austin Energy, CPS Energy and others) run their own programs with their own rates.
What buyback plans actually look like
- Near-retail credit plans: some plans credit exports at or near the import rate, but often pair that with a higher energy charge or monthly fee, price the whole plan, not the headline.
- Wholesale or real-time plans: exports earn the market rate, which averages far below retail but can spike during scarcity events.
- Credit caps and rollover rules: many plans cap monthly export credits at your consumption or expire unused credits annually, which quietly trims the value of an oversized system.
- Term and churn: buyback plans are typically 12-36 month contracts that get repriced at renewal; assume the plan you sign today is not the plan you hold in year 10.
How to choose without a spreadsheet headache
- Estimate your export share first: a system sized near 100% of usage in a home that is empty on summer afternoons exports a lot; a smaller system in a high-usage home exports little and cares less about buyback rates.
- Compare two or three plans on effective annual cost using your expected import and export volumes, not on the buyback rate alone.
- In deregulated areas, start from the official shopping site, powertochoose.org, then check the provider's own solar buyback terms document.
- On a municipal utility or co-op, ask for its current solar rider in writing; programs change and are not always on the website front page.
Plan terms quoted here are typical 2026 market shapes, not any specific provider's offer. Verify the current terms of any plan before signing, and size the system with the calculator first.