Electric meter running backwards with solar panels
Savings & Incentives

How Net Metering Works in Texas: Your Complete Guide

E
ELITENRG Team
· February 28, 2024 · 6 min read

How Net Metering Works in Texas

One of the most common questions we get at ELITENRG is: "What happens when my panels produce more electricity than I use?" The answer is net metering — and it's a key part of why solar pays for itself so quickly.

What Is Net Metering?

Net metering is a billing arrangement where your utility gives you credit for excess solar electricity you send back to the grid. Think of the grid as a giant battery — when your panels overproduce, you "store" energy on the grid; when you need more than you're producing (at night), you draw it back.

How It Works Step by Step

  1. Daytime: Your solar panels produce electricity. Your home uses what it needs, and excess flows to the grid.
  2. Your meter tracks both the electricity you consume FROM the grid and what you send TO the grid.
  3. Your bill reflects the NET difference — consumption minus production.
  4. Credits roll over month to month in most plans.

Texas Net Metering: What's Different?

Texas has a deregulated electricity market, which means net metering policies vary by retail electricity provider (REP). Here's what you need to know:

Retail Electricity Providers (REPs) in the ERCOT market offer various buyback plans:

  • Some offer 1:1 credits — you get full retail value for excess power
  • Others offer wholesale rates — typically 4-8¢/kWh for exports
  • Some offer solar-specific plans — optimized for solar homeowners

Maximizing Your Net Metering Value

ELITENRG helps you optimize your system and plan selection:

  1. Right-size your system — we design to match your actual usage
  2. Choose the right REP — we recommend solar-friendly providers
  3. Time your usage — run heavy appliances during peak solar hours
  4. Add battery storage — store excess power instead of exporting at low rates

Municipal Utilities

If you're in an area served by a municipal utility (like Garland Power & Light or Austin Energy), net metering policies are set by the city. Many municipal utilities offer favorable solar buyback rates.

The Financial Impact

For a typical ELITENRG installation:

  • System produces: 1,200 kWh/month
  • Home consumes: 1,100 kWh/month
  • Net export: 100 kWh/month
  • Monthly credit: $8-15 depending on plan

Over a year, those credits add up — especially in summer months when production exceeds consumption significantly.

Looking Ahead

As Texas continues to invest in grid modernization and renewable energy, net metering and solar buyback programs are expected to improve. Locking in a good solar plan now positions you for even better returns in the future.

Let Us Help You Navigate

The Texas electricity market can be confusing. ELITENRG's team helps every customer select the best electricity plan to maximize their solar investment.

Schedule a free consultation and we'll walk you through exactly how net metering will work for your home.

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