Solar Buy-Back Plans in Texas, Updated for 2025

Here’s how solar customers can still cut their bills in Texas -and what’s changed since last year.

Why Buy-Back Matters

When your panels make more power than you use, the extra kilowatts flow to the grid. A buy-back plan turns those exports into bill credits or, in a few cases, cash. With wholesale prices spiking on hot afternoons, those credits can wipe out a chunk of your summer bill.

How the Plans Work in 2025

1. Net Credit, Not True Net-Metering
   Texas has no statewide net-metering rule. Each retail electric provider (REP) decides what it will pay and how long credits last.
2. Credits Skip TDU Fees
   Delivery charges from Oncor, CenterPoint, and other TDUs aren’t offset by solar credits, so you still see that line item every month.
3. Annual Re-Set or Rollover
   Plans cap or reset credits in different ways. Double-check the Electricity Facts Label (EFL) before signing.

Texas Plan Styles at a Glance

What’s New for 2025

1. Oncor Incentive Caps Jump to $9,000

Oncor still requires a battery to qualify, but its Solar PV Standard Offer now pays up to $9,000 spread over five annual checks.

2. CenterPoint Ups Its Cash

Houston-area customers can grab $135 per installed kW -$3,000 max- for residential systems, first-come first-served.

3. Unlimited Rollover Becomes the Norm

Gexa, Octopus, and several smaller REPs quietly dropped “use-it-or-lose-it” rules after customer push-back in 2024.

4. Battery-Driven VPP Credits

Octopus GridBoost now pays $40/month to manage your Enphase IQ battery and dispatch during peak grid stress, on top of wholesale export credits.

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Federal Incentives: Hard Stop on December 31, 2025

The 30% Residential Clean Energy Credit (Section 25D) -often called the federal solar tax credit -now ends for homeowner-owned systems placed in service after December 31, 2025. President Trump signed the “One Big Beautiful Bill” (OBBB) into law on July 4, 2025, eliminating the credit years ahead of schedule

What Counts as “Placed in Service”?

The IRS typically equates placed in service with completed installation and operational status. The new law keeps that standard: panels must be installed, inspected, and energized by midnight, December 31, 2025.

Can You Qualify by Pre-Paying?

No. Section 25D(8)(A) clarifies that expenditures alone don't qualify; the system itself must be operational before 2026.

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Three Quick Numbers to Check Before Choosing a Plan

1. Export ratio: Pull 12 months of “solar production” and “site consumption” from your monitoring app. If exports exceed imports by 30% or more, prioritize unlimited-rollover or wholesale plans.
2. Import rate: A juicy export price can hide a high buying price. Compare at least two EFLs side-by-side.
3. Contract terms: Most solar plans run 12-24 months with early-termination fees around $150-$295 -double-check before you move.

State and Local Extras

Fast Ways to Boost Your Savings

• Run big loads at noon: Dishwashers, EVs, and pool pumps soak up solar instead of grid power.
• Keep panels clean: A gentle rinse each spring can recover 2-4% production.
• Use your battery wisely: Discharge at dusk to dodge peak import rates, then recharge the next sunny day.

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FAQs

Does any Texas plan wipe out my entire bill?

No. TDUs charge delivery fees that most credits can’t touch, but high wholesale credits from Octopus can offset them if your export value is large enough.

Can I cash out leftover credits?

Octopus sends a check if monthly credits top $50. Gexa rolls credits forward indefinitely but doesn’t pay cash.

What happens if wholesale prices spike to $5 during August?

Real-time plans pay exactly that for each exported kWh, minus a small REP admin fee, but the same spike also affects imported power.

Do I need a battery?

Not for a buy-back plan, but Oncor’s rebate makes batteries almost mandatory in its service area, and batteries let you shift exports to high-value intervals.

Countdown Checklist for the 30% Credit

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Understanding Texas' Deregulated Solar Buyback Market

In Texas' deregulated electricity market, homeowners enjoy the freedom to shop among dozens of retail electric providers (REPs), many offering specialized solar buyback plans designed for panel owners. This competitive landscape creates diverse options with varying contract terms, rates, and benefits tailored to different household needs.

However, solar buyback rates aren't standardized and can vary significantly between providers. For example, Octopus Energy offers unlimited credits with no cap or expiration, paying the real-time Texas wholesale rate that updates every 15 minutes. Champion Energy also uses real-time wholesale pricing, crediting customers based on actual ERCOT market rates that can spike during peak demand periods. On the other end of the spectrum, TXU Energy provides retail-match buyback plans where customers earn credits at the same rate they pay for electricity.

How to Choose the Best Solar Buyback Plan

Picking the right buyback plan requires careful analysis of several key factors that can significantly impact your savings.

Making the Most of Your Solar Investment

Here's how to squeeze the most value from your panels:

Choose the Right Panels

• Efficiency sweet spot: 20-22% efficiency offers the best performance-to-cost ratio
• Panel type: Monocrystalline panels outperform polycrystalline at similar costs
• Premium brands: Maxeon and similar brands hit 24%+ efficiency but cost significantly more
• Reality check: Wattage rating matters more than efficiency percentage for total production

Optimize Panel Placement

• Direction: South-facing is ideal; east/west still produces 85-90% of south-facing output
• Tilt angle: Match your latitude (Houston ~26°, North Texas ~30°)
• Roof-mounted: Flush to existing roof pitch usually works fine
• Key insight: Direction trumps perfect angles every time

Eliminate Shading Problems

• Impact: 20% shading can cut array output by 50%
• Prevention: Conduct year-round shade analysis before installation
• Problem areas: South-side trees cause consistent issues; east/west trees affect mornings/evenings
• Solutions: Microinverters or power optimizers let panels work independently ($0.20-0.40/watt extra)

Keep Panels Clean

• Frequency: Every 6 months (3-4 months in dusty West Texas)
• Impact: Clean panels produce 20-30% more electricity
• Timing: Clean in early morning or evening when panels are cool
• Options: Professional cleaning or DIY with mild soap and soft brush
• Rain isn't enough: Water spots and mineral deposits still block sunlight

Time Your Energy Use

• Peak production: 9 AM - 3 PM when panels produce most
• Run big loads during solar hours: Dishwashers, EVs, pool pumps, washing machines
• Time-of-use plans: Avoid expensive peak hours (3-7 PM) by using stored solar
• Battery strategy: Store midday excess, discharge during expensive evening hours

Advanced Tech for Problem Installations

• Microinverters: Panel-level conversion, best for shading issues, most expensive
• Power optimizers: Individual panel optimization with central inverter, middle-ground cost
• Solar trackers: 25-50% more production, only cost-effective for ground-mount systems
• When to upgrade: Complex shading, irregular roof shapes, or monitoring needs

Transitioning to a Solar Buyback Plan: What You Need to Know

Adopting a solar buyback plan entails a multi-step process:

1. Ensure you meet the eligibility requirements, such as having a residential rooftop solar system typically under 20 kW.
2. Sign an interconnection agreement with your Utility Provider.
3. Be prepared for a possible upfront fee.

Understanding the contract terms is also crucial. Be aware of any caps on the system size, the implications of early termination fees, especially if you plan to change residence, and any limits on the rollover of surplus credits. Familiarize yourself with the solar buyback plan’s terms and conditions, bill credit limits, and additional fees to ensure a smooth transition.

The Impact of Location on Solar Buyback in Texas

Your location within Texas can have a significant influence on your solar buyback experience. The state lacks a statewide policy for solar net metering, leading to various solar buyback programs that differ in billing approaches depending on geographic area. While residents in deregulated areas like Houston and Dallas enjoy the flexibility to choose from various REPs that offer solar buyback plans, those in regulated areas must adhere to the options provided by their local utility.

Some buyback rates in deregulated parts of Texas are based on real-time market prices, which can fluctuate drastically based on energy demand. In cities like Austin, San Antonio, and El Paso, where net metering is available with a single power company, the terms of surplus electricity buyback can vary notably. Thus, your potential solar savings are significantly influenced by the specifics of the solar buyback program in your location.

Real Stories: Texans Benefiting from Solar Buyback

Bottom Line

Texas buy-back plans still stretch your solar dollars, but the federal 30% credit now disappears after December 31, 2025. If you own your system outright, 2025 is the last year to lock in thousands in federal savings. Pair that deadline with richer Oncor and CenterPoint rebates, and the math is clear: start the paperwork now, choose a buy-back plan that matches your export profile, and lock in the benefits before they vanish. And that’s money you can count on -no hype, just sunshine.

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[Note: The information found in this article is subject to change as retail electricity providers (REP's) frequently make adjustments to their plans, we urge the reader to conduct their own research regarding Solar Buyback Plans.]

Sources

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