States Texas Incentive
Net Metering Residential
2026 data DSIRE program data official source

TX Retail Net Metering (Deregulated Areas)

Net Metering for Texas solar owners — program details, eligibility, and payback impact.

Texas Solar Incentive Program

Incentive Amount

Varies by retail provider

Estimated payback impact — typical 8 kW residential system
Without this incentive ~12-15 yr payback
Baseline
With TX Retail Net Metering (Deregulated Areas) ~7-10 yr payback
With incentive

Source: DSIRE program registry & NREL System Advisor Model assumptions · Hover bars for assumptions · Estimates only, not financial advice.

Program Description

In deregulated Texas markets, some retail electricity providers offer buy-back programs for solar.

Program Type

Net Metering

Eligible Customers

residential

State Electricity Rate

14¢/kWh

How this incentive fits Texas's solar picture

The TX Retail Net Metering (Deregulated Areas) is a net metering tracked in the federal DSIRE database as one of Texas's solar policy levers. Eligibility is scoped to residential customers, with a stated benefit of Varies by retail provider. The program does not carry a scheduled sunset in DSIRE, though appropriations and enabling legislation can still be revised year to year. Like every state-level incentive, it is designed to stack on top of the federal 30% Investment Tax Credit rather than replace it.

Layered onto Texas's underlying economics, this matters more than it might look in isolation. The state averages 5.7 kWh/m²/day of usable sunlight and residential rates of 14¢/kWh, producing an estimated 9,986 kWh/year and $1,398 in annual utility offset on a typical 6kW system costing $16,500. Without incentives that baseline already implies a 11.8-year simple payback — every dollar this net metering delivers compresses that payback further and improves 25-year net returns, currently modeled at roughly $18,450 before accounting for the TX Retail Net Metering (Deregulated Areas) itself.

This program is not the only option. Texas has 5 solar incentive programs indexed in DSIRE, including adjacent options like TX Renewable Energy Property Tax Exemption, Austin Energy Solar PBI, CPS Energy Solar Rebate (San Antonio). The state's net metering policy is classified as partial, which governs how excess generation is credited and often determines whether a given program is worth claiming for a specific household. Before applying, verify current terms on the official program page, confirm your utility participates, and consult a qualified tax professional about how state credits interact with the federal ITC on your return.

Other Texas Incentives

Frequently Asked Questions

What is the TX Retail Net Metering (Deregulated Areas)?
The TX Retail Net Metering (Deregulated Areas) is a net metering available to residential solar customers in Texas. The incentive amount is Varies by retail provider.
How does the TX Retail Net Metering (Deregulated Areas) work?
In deregulated Texas markets, some retail electricity providers offer buy-back programs for solar.
Who is eligible for the TX Retail Net Metering (Deregulated Areas)?
This program is available to residential customers in Texas. Check the official program page for current eligibility requirements and application deadlines.
How does this incentive affect solar ROI in Texas?
Texas has an estimated 11.8-year payback period for a 6kW solar system. Programs like the TX Retail Net Metering (Deregulated Areas) can help reduce upfront costs and improve ROI. The state has 4 total incentive programs. Use our ROI calculator for a personalized estimate.
Are there other solar incentives in Texas?
Yes, Texas has 5 solar incentive programs total, including TX Renewable Energy Property Tax Exemption, Austin Energy Solar PBI, CPS Energy Solar Rebate (San Antonio). These state programs stack with the federal 30% Investment Tax Credit (ITC).

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Incentive data from the Database of State Incentives for Renewables & Efficiency (DSIRE). Solar metrics from NREL and EIA.

Related

Data sourced from official U.S. government datasets. See our methodology for details. Retrieved and formatted by PlainSolarData Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from DSIRE, NREL, and EIA. Consult a qualified professional before making decisions based on this data.

All federal data sources used on this page