Texas · Net metering

TX Retail Net Metering (Deregulated Areas)

Sets the billing terms for excess solar generation sent back to the grid by residential customers in Texas -- see the credit rate and how it shapes payback below.

Varies by retail pro…
stated benefit
Residential
eligible customers
11.8 yr
Texas baseline payback
4
other Texas programs

What it means

In Texas, a 6 kW system already pays back in about 11.8 years on ~$1,398/year of modeled savings, and the TX Retail Net Metering (Deregulated Areas) stacks on top of that, on top of any federal credit.

Varies by reta…
stated benefit
11.8 yr
baseline payback (pre-incentive)
5
Texas programs that stack
partial
net-metering policy

Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.

Program description

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

Program at a glance

Program type
Net metering
Eligible customers
Residential
Stated benefit
Varies by retail provider
State electricity rate
14¢/kWh
Texas solar score
49/100

How Texas compares to the U.S. average

Why this incentive matters more (or less) here - Texas's solar fundamentals against the national average.

Irradiance
Texas: 5.7 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Texas: 14¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Texas: 11.8 yr
U.S. avg: 14.2 yr

Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.

Solar's trajectory in Texas

The market this incentive operates in: total installed solar capacity in Texas reported to the EIA.

-5000 MW0 MW5.0 GW10.0 GW15.0 GW20.0 GW25.0 GW 19901994199820022013201720212024 22.5 GW
Texas now has about 22.5 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Texas's solar incentive stack

How this net metering sits among Texas's 4 tracked programs, by type

programs

What this shows Texas tracks 4 incentive types; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.

Source DSIRE incentives registry As of 2024

How this incentive fits Texas's solar picture

The TX Retail Net Metering (Deregulated Areas) governs how Texas credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Varies by retail provider. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Texas 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 of annual utility offset on a typical 6 kW system costing $16,500. That baseline already implies a 11.8-year simple payback and a 25-year modeled net of roughly $18,450 before this incentive - every dollar this net metering delivers compresses that payback further.

A handful of other levers are worth checking alongside this one. 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 decides whether a given program is worth claiming for a specific household.

Your next step

  • See Texas's full solar profile, score, irradiance, rates, payback, and every program you can claim. Texas solar data
  • Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
  • See how net-metering credits are valued state by state. Net-metering guide

Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.

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 stated benefit 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)?
The program is available to residential customers in Texas. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Texas?
Texas has an estimated 11.8-year payback for a 6 kW system before incentives, with about $1,398/year in modeled savings. A net metering like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Texas?
Yes - Texas has 5 solar incentive programs tracked in DSIRE, including TX Renewable Energy Property Tax Exemption, Austin Energy Solar PBI, CPS Energy Solar Rebate (San Antonio). State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.