Solar buyback is when you buy your power from the Texas power grid at retail price and earn back credit at a solar buyback price the utility provider determines for your excess power.Companies in Texas offer a form of buyback that they say is net metering but is actually bi-directional metering. Credits that you earn are subtracted from your bill. You end up paying for the difference between the price for what you used and the credit you got back. Net metering is when you pay for power at retail price, and you are able to sell back your excess electricity from your solar powered system for a credit at that same retail price.The majority of Texas companies offer bi-directional metering but still refer to it as net metering. Texas net metering is different in the Lone Star state, utility companies offer net metering and determine the rate. ![]() Net metering rates are determined by state policies in many parts of the US while utility companies determine the rates for solar buyback. Map of Deregulated Cities What’s the Difference? There are many deregulated cities in Texas to include Houston, Dallas, Waco, Corpus Christi, Fort Worth and many more! Deregulation began in 2002 and since then Texas has become the largest deregulated market across the United States. Newly released net metering offset program for Texas became available in January 2023. It’s also important to note that some of these plans also have base monthly fees that they charge as administrative fees and non-usage costs. Other plans have different rates and details even when they are provided by the same utility retail company. It only gives you 10.5 cents in credit when you send them electricity. This example charges you 15.9 cents per kWh plus a TDU (Transmission and Distribution Utility) charge to maintain electrical delivery lines to import your electricity. Their plan lets them earn 37.7 cents per kWh that they give back (export) excess power to the grid.Ĭompare that with other plans listed here like the Texas Solar Buyback plan offered by Rhythm. This customer would have this plan for 12 months and pay (imports) 37.7 cents per kWh. Say that a customer for the retailer Pulse decides to enroll in their Solar Buy-Back plan for the 12 month term. Let’s look at an example of solar buyback to get a better look. ![]() On top of that, different types of programs offered let you bank your credits to use later. Additionally, some Texas solar buyback plans also allow you to roll over the credit you’ve earned. ![]() So what’s the difference between using traditional net metering and traditional solar buyback? While solar buyback usually has different kWh prices for electricity that is used and generated, net metering typically gives you full credits for every kWh sent to your power grid. Let’s begin with the difference between how it is offered in Texas as opposed to the rest of the U.S. Let’s go over the differences between net metering and solar buyback and how they work. You’re absolutely right! It sounds very similar, but there are some differences to keep in mind. Īt this point you might be scratching your head and thinking “wait, this sounds a lot like solar buyback”. This is especially useful if you want to store your power rather than give it back to your utility provider. It’s worth mentioning that backup batteries work exceptionally well when it comes to energy storage. Keep in mind that backup batteries are still a great thing to add to your solar power system. ![]() Y ou also don’t need backup batteries to use net metering. With net metering, you only pay for the difference between the energy you used and the energy you sold – the “net” amount you used. Most Texans, even if they only install solar panels, should be able to use net metering. In many cases, you won’t use up all of the electricity that your solar powered system creates. Depending on the type of net metering you choose (see below) you can even save the credits for future use. Your credits are used to offset your electricity bills. Net metering is a type of solar buyback program that lets you send the extra energy your solar panels are producing back to your utility company for NEM credits. Texans are able to do this through another incredible benefit they get from going solar called net metering. On top of using less electricity, they can also send electrical power back to their utility providers. Many Texans take advantage of the never ending sunshine they get with carefully designed solar power systems. Solar powered systems set a high standard when it comes to a stable, sustainable, and cost effective way to generate power.
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