Texas Solar Buyback Programs 2026: The Complete Guide to Getting Paid for Your Solar Power

You've invested in solar panels—now how do you maximize that investment? In Texas, understanding solar buyback programs is the key to turning your rooftop into a revenue-generating asset. Unlike states with mandatory net metering, Texas operates differently, creating both challenges and opportunities for solar homeowners.

This comprehensive guide breaks down everything you need to know about getting compensated for your solar electricity in 2026.

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The Texas Solar Landscape: No Net Metering, But Plenty of Options

Here's the first thing every Texas solar owner needs to understand: Texas does not have mandatory net metering. While this might sound like bad news, the state's deregulated electricity market actually creates a competitive landscape where providers offer various buyback programs to attract solar customers.

The Good News:

• Competition among 100+ providers means varied buyback options
• Some providers offer rates exceeding traditional net metering
• You can switch providers to find better buyback terms
• No statewide caps on system size or program participation

The Reality Check:

• Buyback rates vary wildly (from $0.03 to $0.12+ per kWh)
• Not all providers offer solar buyback programs
• Terms and conditions differ significantly
• You must actively shop and compare—there's no default protection

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Understanding Solar Buyback Program Types

How It Works: You receive credits at the same rate you pay for electricity.

Example:

• Your energy rate: $0.11/kWh
• Buyback rate: $0.11/kWh
• Export 500 kWh → $55 credit

Pros:

• Simplest to understand
• Maximum value for exported power
• True "1-for-1" energy exchange

Cons:

• Increasingly rare in Texas
• Often comes with higher base energy rates
• May have monthly credit caps

How It Works: Provider pays a set rate per kWh regardless of your energy rate.

Example:

• Your energy rate: $0.11/kWh
• Buyback rate: $0.08/kWh (fixed)
• Export 500 kWh → $40 credit

Pros:

• Predictable returns
• Rate doesn't change with market fluctuations
• Often paired with competitive energy rates

Cons:

• Usually lower than retail rate
• May not reflect true value of daytime solar

How It Works: Credits based on wholesale market prices or "avoided cost."

Example:

• Your energy rate: $0.11/kWh
• Buyback rate: $0.04-0.06/kWh (wholesale)
• Export 500 kWh → $20-30 credit

Pros:

• Most widely available option
• Often paired with lowest energy rates
• Transparent market-based pricing

Cons:

• Lowest buyback value
• Returns vary with wholesale market
• Less incentive for oversized systems

How It Works: Buyback rates vary based on when you export.

Example:

• Peak hours (2-7 PM): $0.15/kWh buyback
• Off-peak hours: $0.06/kWh buyback
• Your solar peaks during high-value afternoon hours

Pros:

• Can maximize value of afternoon solar production
• Aligns incentives with grid needs
• Potentially highest returns for well-positioned systems

Cons:

• More complex to calculate returns
• Requires understanding of production timing
• Evening usage can offset daytime credits

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Top Solar Buyback Providers in Texas (2026)

Program Type: Full retail rate credit (up to usage) Buyback Rate: 100% of energy charge for exports up to consumption Monthly Fee: $0 Contract Length: Month-to-month and fixed options

Best For: Solar owners who produce roughly what they consume monthly

Details:

• Credits roll over month-to-month
• Annual true-up pays out excess credits
• Requires bi-directional meter (TDU provides)

Program Type: Fixed buyback rate Buyback Rate: $0.08-0.10/kWh (varies by plan) Monthly Fee: $0 Contract Length: 12-36 month options

Best For: High-production systems that export significantly

Details:

• 100% solar-backed electricity
• Straightforward credit calculation
• No cap on export credits

Program Type: Wholesale + premium buyback Buyback Rate: Wholesale price + bonus (typically $0.06-0.09/kWh) Monthly Fee: $0 Contract Length: Month-to-month

Best For: Tech-savvy owners comfortable with variable rates

Details:

• Transparent real-time pricing
• App shows live buyback rates
• Credits based on actual market value

Program Type: Fixed buyback Buyback Rate: $0.05-0.07/kWh (plan dependent) Monthly Fee: Varies by plan Contract Length: 12-24 months

Best For: Those wanting a major provider with solar options

Details:

• Established customer service
• Various plan combinations
• May require specific solar plans

Program Type: Bill credit program Buyback Rate: $0.06-0.09/kWh (plan dependent) Monthly Fee: Varies Contract Length: 12-36 months

Best For: Existing Reliant customers adding solar

Details:

• Solar-specific plans available
• Rewards program integration
• Nest thermostat bundles

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Calculating Your True Solar Value

When evaluating solar buyback programs, don't just compare buyback rates. Calculate total value:

Monthly Solar Value = 
  (Self-consumed kWh × Energy Rate Avoided) +
  (Exported kWh × Buyback Rate) -
  (Monthly Fees) -
  (TDU charges for any grid consumption)

Scenario: 8kW system, produces 1,100 kWh/month, home uses 1,400 kWh/month

Option A: High Buyback, Higher Energy Rate

• Energy rate: $0.13/kWh
• Buyback rate: $0.11/kWh
• Self-consumption: 900 kWh × $0.13 = $117 savings
• Export: 200 kWh × $0.11 = $22 credit
• Grid purchase: 500 kWh × $0.13 = $65 cost
• TDU: ~$45
• Net bill: $88 | Solar savings: $139

Option B: Lower Buyback, Lower Energy Rate

• Energy rate: $0.09/kWh
• Buyback rate: $0.06/kWh
• Self-consumption: 900 kWh × $0.09 = $81 savings
• Export: 200 kWh × $0.06 = $12 credit
• Grid purchase: 500 kWh × $0.09 = $45 cost
• TDU: ~$45
• Net bill: $78 | Solar savings: $93

Winner: Option A provides $46 more monthly value despite the lower buyback rate because the higher energy rate makes self-consumption more valuable.

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Maximizing Your Solar Investment

In Texas without true net metering, oversizing your system often yields diminishing returns:

Optimal Sizing Strategy:

• Aim to offset 80-90% of annual consumption
• Account for future usage changes (EVs, home additions)
• Consider battery storage before major oversizing
• Summer production will exceed winter significantly

High-Value Daytime Loads:

• Run dishwasher mid-afternoon
• Charge EVs during peak solar production
• Schedule pool pumps for sunny hours
• Pre-cool home before evening peak

Why This Matters: Every kWh you use directly from your panels avoids both the energy charge AND buyback inefficiency.

With buyback rates often below retail rates, batteries increasingly make sense:

Battery Economics:

• Store excess solar for evening use
• Avoid importing expensive peak electricity
• Backup power during outages
• Potential future grid services revenue

Break-Even Analysis:

• If buyback rate is $0.06 and evening rate is $0.12
• Each kWh stored and used later saves $0.06
• 10 kWh battery cycling daily = $0.60/day = $219/year additional value

Solar buyback terms change frequently. Review annually:

Check For:

• New providers entering the market
• Rate changes from current provider
• Better buyback terms available
• Changes to your usage patterns

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Common Solar Buyback Pitfalls

The Mistake: Choosing a plan solely because it offers $0.12/kWh buyback.

The Reality: That plan might have a $0.15/kWh energy rate, making grid purchases expensive. A plan with $0.08 buyback and $0.09 energy rate could save you more overall.

The Mistake: Not factoring in $9.95/month "solar program fee."

The Reality: That's $120/year eating into your solar savings. Many providers offer $0 monthly fees.

The Mistake: Expecting unlimited credit rollover and cash-out.

The Reality: Many programs cap credit accumulation or expire credits annually. Read the fine print about:

• Maximum credit balance
• Annual true-up terms
• What happens if you switch providers

The Mistake: Thinking solar eliminates your entire electric bill.

The Reality: TDU delivery charges apply to all grid consumption AND often to exported power. Even with 100% solar offset, expect $30-50/month in unavoidable charges.

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The Future of Texas Solar Buyback

Increasing Battery Integration:

• More providers offering solar + battery plans
• Virtual power plant programs paying for battery dispatch
• Grid services creating new revenue streams

Time-of-Use Expansion:

• More granular pricing reflecting grid needs
• Premium rates for afternoon solar export
• Evening pricing encouraging battery adoption

Regulatory Changes:

• PUC examining solar interconnection rules
• Potential standardization of buyback minimums
• Federal incentives affecting system economics

If You're Installing Solar Now:

• Lock in favorable buyback terms where possible
• Consider battery-ready inverter installation
• Plan for evolving rate structures
• Maintain flexibility to switch providers

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Step-by-Step: Finding Your Best Buyback Plan

• 12 months of electricity usage
• Proposed or actual solar system size
• Expected monthly production (installer provides)
• Your TDU (determines delivery charges)

• Compare monthly production to consumption
• Account for seasonal variation
• Estimate self-consumption vs. export ratio

• List buyback rate, energy rate, and fees
• Calculate expected monthly cost/credit
• Consider contract length and flexibility

• Credit expiration policies
• Switching/cancellation fees
• Rate change provisions
• Metering requirements

• Contact chosen provider about solar enrollment
• Confirm bi-directional meter status with TDU
• Understand timeline for buyback activation

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Taking Action

1. Review your current plan's solar terms (even if you don't have solar yet)
2. Request solar production estimates from installers
3. Compare electricity plans with solar buyback programs
4. Calculate your specific scenario using the formulas above

1. Audit your buyback performance against newer offerings
2. Check if your credits are being maximized or expiring
3. Consider whether battery storage now makes economic sense
4. Set a calendar reminder for annual plan review

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The Bottom Line

Texas solar buyback programs require more homework than states with mandated net metering—but the deregulated market also offers opportunities to find excellent terms. The key is understanding that your total electricity economics matter more than any single rate.

By combining strategic system sizing, smart consumption shifting, and careful plan selection, Texas solar owners can achieve payback periods of 6-8 years and decades of ongoing savings. The effort you put into understanding these programs directly translates to dollars saved.

Your solar panels are already generating clean energy. Make sure you're capturing every dollar of value they create.

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Solar buyback rates and program terms change frequently. This guide reflects information available as of January 2026. Always verify current terms directly with providers before making decisions. For personalized recommendations based on your specific usage and solar production, use our plan comparison tool.