Texas Electricity Rates Up 4.2% This Year
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If you have solar panels in Texas, your buyback rate determines how much you earn for excess electricity. Unlike states with net metering, Texas lets you choose your electricity provider - and rates vary dramatically. Some providers pay $0.04/kWh. Others pay $0.12/kWh. For the same excess power, that's a 3x difference in your earnings.
How Texas Solar Buyback Works
Texas doesn't have traditional net metering. Instead:
- Your solar produces electricity
- You use what you need
- Excess flows to the grid
- Your Retail Electric Provider (REP) credits you at their buyback rate
- At night, you buy electricity back at retail rate
The spread between buyback rate and retail rate is where you win or lose.
Best Solar Buyback Plans in Texas (2026)
Top buyback rates as of 2026: Highest Buyback Rates:
- **Rhythm Energy:** Up to $0.12/kWh buyback
- **Green Mountain Energy:** $0.10-0.11/kWh
- **Chariot Energy:** $0.09-0.10/kWh
Best for High Producers:
- Plans with 1:1 buyback up to a cap
- Then drops to wholesale rate
Best for Low Producers:
- Fixed buyback rate regardless of production
- Simpler, more predictable
How to Read a Solar Buyback Plan
Key terms to understand: Buyback Rate: What they pay you per kWh of excess (the higher, the better) Export Cap: Maximum kWh they'll buy back at full rate (watch for limits) True-Up: Monthly vs. annual settlement (monthly is usually better) Base Charge: Fixed monthly fee regardless of usage Red flags:
- Buyback rate that drops after a certain kWh threshold
- Annual true-up that delays your credits
- High base charges that eat into savings
Oncor vs. CenterPoint vs. AEP Territory
Your utility territory affects which REPs are available: Oncor (Dallas/Fort Worth area):
- Most REP choices
- Fastest interconnection
- Best buyback options
CenterPoint (Houston area):
- Good REP selection
- Slightly slower interconnection
- Competitive buyback rates
AEP Texas (South/West Texas):
- Fewer REP choices
- Longer interconnection times
- Still decent buyback options
How to Switch Buyback Plans
Already have solar? You can switch REPs:
- Check your current contract for early termination fees
- Compare buyback rates on PowerToChoose.org
- Sign up with new provider (they handle the switch)
- Keep producing - your solar isn't interrupted
Pro tip: Many plans have no termination fee or waive it for solar customers.
Calculate Your Buyback Earnings
Example for a typical Texas solar home:
- System size: 8 kW
- Annual production: 12,000 kWh
- Self-consumption: 70% (8,400 kWh)
- Excess to grid: 30% (3,600 kWh)
At $0.04/kWh buyback: $144/year At $0.08/kWh buyback: $288/year At $0.12/kWh buyback: $432/year The right plan could mean $300/year more in your pocket.
Find Buyback Rates by City
See local buyback information:
- Houston Solar Buyback
- Dallas Solar Buyback
- Austin Solar Buyback
- San Antonio Solar Buyback
Ready for Next Steps?
Modern Electric helps Texas homeowners with:
- Battery additions and grid services enrollment
- Solar system optimization and monitoring
- Buyback rate shopping and bill analysis
- Honest assessments with no pressure
How Much Can You Save With Solar in Texas?
Use our free savings calculator to see real costs, payback periods, and 25-year returns for Texas cities.