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.
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.
Texas's solar incentive stack
How this net metering sits among Texas's 4 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Performance
Performance
1 programs
- Rebate
Rebate
1 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.
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.
Other Texas incentives
Frequently asked questions
What is the TX Retail Net Metering (Deregulated Areas)?
How does the TX Retail Net Metering (Deregulated Areas) work?
Who is eligible for the TX Retail Net Metering (Deregulated Areas)?
How does this incentive affect solar ROI in Texas?
Are there other solar incentives in Texas?
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.