How Solar Works

Net Metering in Texas: How DFW Solar Homeowners Get Credit for Excess Power

February 28, 20267 min read

If you search "net metering Texas," you will find a lot of confusing answers. That is because Texas technically does not have traditional net metering - the ERCOT deregulated electricity market works differently than most states. But DFW solar homeowners can still get meaningful bill credits for excess power their system produces. The key is understanding how the Texas solar buyback system actually works and choosing the right retail electric provider (REP) before you go solar.

Why Texas Does Not Have Traditional Net Metering

In most states, net metering is a utility mandate: whatever excess electricity your solar panels push onto the grid, you get credited at the full retail rate. Texas deregulated its electricity market in 2002, which means most of the state (including DFW) is served by dozens of competing retail electric providers rather than a single monopoly utility. There is no single entity to mandate net metering against.

Oncor is still your TDU (Transmission and Distribution Utility) - they own the wires and the meter. But they do not set your electricity rates or determine your buyback credits. Your retail electric provider does. And the buyback rate varies significantly by provider.

How Texas Solar Buyback Actually Works

When your solar panels produce more electricity than your home is using at any given moment, the excess flows back onto the Oncor grid. Oncor measures this outflow with a bidirectional meter (required for all solar customers). Your retail electric provider then calculates a credit based on whatever buyback rate they offer.

Provider TypeHow Credits WorkTypical Rate
Solar buyback planCredits at near-retail rate for all excess export$0.10 - $0.14/kWh
Standard plan (no buyback)No credit for exported power$0.00/kWh
Partial buyback planCredits a portion of export at wholesale rate$0.02 - $0.06/kWh
Time-of-use solar planHigher credits during peak hours (2pm-8pm)$0.08 - $0.18/kWh

The difference between being on the right plan and the wrong plan can be worth $300-$600 per year for a typical DFW solar home. This is something we discuss with every customer before installation - your REP choice is part of the solar economics.

Which Texas Electric Providers Offer Solar Buyback?

Several retail electric providers serving DFW currently offer dedicated solar buyback plans. The market changes frequently - providers adjust rates, add or drop solar plans, and new competitors enter. As of early 2026, providers offering meaningful solar buyback in the Oncor service area include Rhythm Energy, Green Mountain Energy, TXU Energy, Reliant, and several smaller providers.

Pro tip: Always check the Electricity Facts Label (EFL) for any solar buyback plan. Providers are required to disclose the exact buyback rate per kWh in the EFL. Compare the buyback rate AND the rate you pay for grid electricity - a high buyback rate paired with a high consumption rate may not be the best deal overall.

How Much Excess Power Does a DFW Solar Home Typically Export?

This varies by system size, home energy usage, and time of year. A properly sized DFW solar system is designed to roughly offset your annual usage - meaning some months you overproduce (spring, fall) and some months you underproduce (July-August when AC runs constantly).

SeasonTypical Solar ProductionTypical Home Usage (2,500 sq ft)Net Export
Spring (Mar-May)High - long days, mild tempsLower - no AC yetSignificant export
Summer (Jun-Sep)Very high - peak sunVery high - heavy ACLittle to no export
Fall (Oct-Nov)ModerateLower - cooling offModerate export
Winter (Dec-Feb)Lower - shorter daysModerate - heatingVaries

This seasonal pattern is why solar buyback credits accumulate in spring and fall, effectively building a credit bank that offsets summer months when you draw heavily from the grid. On a well-matched system with a solid buyback plan, many DFW homeowners end the year with a small net credit or near-zero annual bill.

Does Adding Battery Storage Change the Net Metering Equation?

Yes, significantly. Battery storage lets you capture your excess midday solar production and use it yourself in the evening rather than exporting it at buyback rates. Since you consume electricity at retail rates (whatever your REP charges), self-consumption of stored solar is almost always more valuable than exporting at buyback rates.

  • Self-consuming stored solar avoids paying retail rates at night (typically $0.12 - $0.16/kWh in DFW)
  • Exporting at buyback rates earns $0.06 - $0.14/kWh - usually less than the retail rate you avoid
  • Battery storage also qualifies for the Oncor Solar+Storage rebate of up to $9,000
  • During grid outages, stored solar keeps your home powered regardless of buyback economics
  • Time-of-use plans reward discharging your battery during peak demand hours for higher credits

What Happens to My Solar Buyback if I Switch Providers?

In Texas's deregulated market, you can switch retail electric providers at the end of any contract term. If you move to a provider without a solar buyback plan, you simply stop receiving credits for exports - Oncor still measures your two-way usage, but your new provider pockets the value instead of passing it to you. Always confirm a new provider's solar buyback terms before switching.

How to Set Up Solar Buyback for Your DFW Home

  1. 1Go solar with Zencore Solar - we handle Oncor interconnection and bidirectional meter installation
  2. 2Before your system goes live, compare solar buyback plans on PowerToChoose.org (Texas's official comparison site)
  3. 3Sign up for a solar buyback plan with your chosen provider - some providers require a special solar rate code
  4. 4Oncor notifies your provider that a solar system is active at your address
  5. 5Your first bill after activation should show both consumption and export meters - verify the buyback credit appears correctly
  6. 6Review annually - buyback rates and plan availability change, and the best plan today may not be the best in two years

We help every Zencore Solar customer choose the right retail electric provider and solar buyback plan before their system goes live - so they maximize credits from day one.

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