Unlike states with statewide net metering mandates, Texas operates primarily under a deregulated energy market governed by the Electric Reliability Council of Texas (ERCOT). In 2026, finding the right Retail Electric Provider (REP) and solar buyback plan is the decisive factor in your solar payback equation.
1. How Solar Buyback Works in Texas
In Texas, your Transmission and Distribution Utility (TDU—such as Oncor, CenterPoint, AEP, or TNMP) delivers the electricity, but you purchase power and sell solar exports through a REP (such as Rhythm, Chariot Energy, TXU, or Green Mountain Energy).
Because REPs set their own buyback terms, export compensation varies dramatically across three plan types:
| Buyback Plan Type | Typical Export Value | Best Suited For |
|---|---|---|
| 1:1 Net Metering (Rare) | Full Retail Rate (~15¢/kWh) | Solar-only homes without batteries (limited availability) |
| Fixed-Rate Buyback | Fixed 6¢ - 10¢ / kWh | Homeowners seeking predictable, stable monthly offsets |
| Real-Time Wholesale (RTW) | 0¢ to $3.00+ / kWh (Market Float) | Smart battery owners who can discharge during heatwaves |
2. Key Elements on the Electricity Facts Label (EFL)
Before signing a multi-year REP contract, examine the Electricity Facts Label for three critical clauses:
- TDU Delivery Charges: Check whether export credits offset both the energy charge and the TDU delivery fee (approx. 4.5¢–5.5¢/kWh) or only the generation charge.
- Monthly Credit Rollover: Ensure unused credits roll over month-to-month so you can bank spring surplus for summer air conditioning spikes.
- Base Fees: Watch for monthly customer fees ($10–$20/mo) that remain payable even if your solar system covers 100% of your energy usage.