One thing we rarely have a shortage of in Texas is sunshine. And Texans across the state are taking advantage of this resource by investing in home solar systems. But to maximize your investment in solar panels, choosing the right buyback plan is crucial. Solar buyback programs allow you to sell excess electricity to the grid, potentially saving hundreds or even thousands on annual energy costs.
What Is a Solar Buyback Program?
A solar buyback plan lets you earn credits for excess electricity exported to the grid.
For instance, if your home uses 1,000 kilowatt-hours (kWh) in a month and your panels produce 400 excess kWh, you’ll receive a credit for 400 kWh exported.
Texas doesn’t have a statewide solar buyback policy, but many electricity providers offer plans with this feature. Typically, the rate for excess solar energy is lower than the retail rate you pay for your grid usage. However, some providers credit you at the full retail rate, excluding transmission and distribution fees.
In Texas’s deregulated energy market, you can choose your electricity plan and provider. However, having solar panels doesn’t guarantee compensation for surplus production; selecting a plan that includes solar buyback is essential.
Top Solar Buyback Providers in Texas
While the Public Utility Commission of Texas (PUCT) lists 140-plus electricity companies in the state, not all these providers offer solar buyback plans. For example, Payless Power and 4Change Energy don’t offer solar buyback plans, but many other providers do.
Almika Solar, Ambit Energy and TXU Energy typically offer the highest solar buyback rates in Texas, but also charge high rates when you use grid electricity. Rhythm Energy also pays high rates if your solar system includes a battery capable of exporting energy during peak-demand hours. Other providers like Direct Energy and Reliant offer solar buyback plans in 2025, but their compensation rates are relatively low.
Since Texas has a competitive electricity market, plan availability and pricing are always subject to change. However, the energy providers listed below offer solar buyback plans with the highest export rates as of June 2025.
| Provider | Solar Buyback Plan | Solar Buyback Rate | Term Length | Features |
|---|---|---|---|---|
| Almika Solar | 60 Energy Plus Buyback | 10.0 cents per kWh | 60 months | 100% renewable energy |
| Ambit Energy | Total Solar Buyback 12 | 17.1 cents per kWh | 12 months | 100% renewable energy |
| Direct Energy | Direct Solar Unlimited 12 | 5.9 cents per kWh | 12 months | 100% renewable energy |
| Reliant | Solar Payback Plus 12 | 5.9 cents per kWh | 12 months | Optional upgrade to 100% renewable energy for $9.95 per month |
| Rhythm Energy | PowerShift Solar Buyback 12 | 23.0 cents per kWh7:00 p.m. to 9:59 p.m. 12.2 cents per kWh6:00 a.m. to 8:59 a.m.4:00 p.m. to 6:59 p.m. 2.5 cents per kWhAll other schedules | 12 months | 100% renewable energy Time-of-use rates |
| TXU Energy | Solar Buyback Match 12 | 18.2 cents per kWh | 12 months | 100% renewable energy |
You can also find electricity plans that offer solar buyback at the real-time wholesale price of the Texas electricity market. However, while wholesale rates can spike during high-demand periods, they typically remain below 4 cents per kWh. In contrast, electricity plans with fixed rates for solar buyback offer more consistent compensation over time.
Types of Solar Buyback Plans
Solar buyback plans can be classified into four main types, based on how they calculate the export rate for excess solar energy.
1:1 Buyback Plans
These plans credit your excess solar energy at the same rate you pay for your grid usage. For example, if your plan has an energy rate of 15 cents per kWh, you’ll get paid 15 cents per kWh for excess solar energy. One-to-one buyback plans are also the least common, available only from Ambit Energy and TXU Energy as of June 2025.
While this rate structure can help you maximize your credits on excess energy, be careful. You may end up paying a higher-than-average rate for the power you use directly from the grid, cutting into your savings. This plan type may not suit your home if you don’t export much power and use a significant portion of grid energy.
Net Billing Buyback Plans
These plans pay a lower solar buyback rate than the retail rate you pay for grid power.
For example, a plan falls in this category if it charges 15 cents per kWh, but only credits 6 cents per kWh for excess solar energy. A net billing plan can make sense if it offers a low rate during nighttime, when you’re more likely to rely on grid energy for your home. In these cases, the benefit of an affordable rate at night tends to outweigh the low buyback rate during the day.
Direct Energy, Reliant Energy and Green Mountain Energy offer solar buyback plans with net billing structures.
Wholesale Rate Buyback Plans
These plans purchase your excess solar energy at the real-time wholesale rate, which varies depending on supply and demand. While wholesale prices can spike above 20 cents per kWh on hot summer days, they usually remain below 4 cents per kWh. Like net billing plans, wholesale-rate buyback plans can make sense if they offer a low retail rate for nighttime hours and your surplus solar production is minimal.
Champion Energy Services and Chariot Energy offer wholesale-rate buyback plans for solar owners. Reliant Energy and Green Mountain Energy also offer some plans with this pricing structure.
Time-of-Use Buyback Plans
These plans offer different compensation rates depending on the time of day. However, they usually pay the highest rates in the evening, when solar panels are no longer productive. For this reason, time-of-use buyback plans are better suited for homes with battery storage, capable of storing energy and exporting electricity when rates are optimal. These solar buyback plans are usually available from Rhythm Energy.
In addition to these solar buyback plan types, solar buyback plans can be structured with capped or uncapped monthly credits. Capped plans let you export excess energy until your solar credits match your monthly usage. However, you can’t earn more credits than your usage. Uncapped plans let you accumulate solar credits above your monthly usage, and the unused balance rolls over to future bills.
What To Consider When Signing Up For a Buyback Plan
When comparing solar buyback plans, you might be drawn to the options that pay the highest rates for excess solar energy. However, it’s also important to consider other factors, such as the retail rate you pay when using grid electricity, and whether the plan is capped or uncapped.
Import vs. Export Rates
Solar buyback plans have a retail electricity rate you pay when using grid electricity, and a buyback rate you receive when exporting solar energy.
- Retail rate: Usually more important if you tend to use most of your solar generation and often rely on the grid supply
- Buyback rate: Tends to be more important if your solar panels generate plenty of excess production
For example, TXU Energy offers some of the highest buyback rates in the market, but also charges above-average retail rates when you use the grid. For this reason, the TXU Solar Buyback Match plan will typically favor solar homes with plenty of excess production.
On the other hand, Champion Energy offers solar buyback at real-time wholesale rates, but also offers affordable retail rates. Its plans are better suited for homes that use most of their solar generation, frequently using the grid to cover the rest of their consumption.
Credit Structure and Limitations
Capped solar buyback plans offer monthly credits up to your energy usage, but you cannot accumulate additional credits beyond this point. Uncapped plans have no limit, allowing you to roll over unused credits.
- If your solar panels have plenty of excess production, an uncapped plan allows you to save unused balances for future billing periods.
- On the other hand, if you use most of your solar generation, a capped plan may be viable if it offers other benefits, such as low retail rates.
Most solar buyback plans with uncapped monthly credits have an annual cap, meaning you can accumulate credits during the summer to be used during fall and winter. But watch out: Unused credits may expire after 12 months.
Contract Terms and Length
Solar buyback plans have contract terms like any other type of electricity plan in Texas. The most common plan lengths in the market are 12, 24 or 36 months. However, Almika Solar offers a 60-month solar buyback plan if you want to secure an export rate long-term.
When a solar buyback plan is available with multiple contract terms, the longer options usually have reduced buyback rates. However, they also tend to charge lower retail rates when you use the power grid.
System Size Compatibility
When comparing solar buyback plans, the size of your photovoltaic system is also important. If you own a large solar system with plenty of excess production, you can benefit most from an uncapped plan with a competitive buyback rate. On the other hand, if your solar system is small and rarely exports energy, you can focus on plans with low retail rates, even if they have a capped credit structure or low buyback rates.
How To Maximize Value from Your Solar Buyback Plan
Even with a competitive solar buyback plan, your total savings depend on how well you can manage your solar system and home energy usage. For example, you can increase your savings by aligning your consumption with the most productive solar hours, typically around noon.
Here are some practical tips to help you get the most from your solar buyback plan.
Optimize Your Energy Usage Patterns
Solar panels offer maximum savings when you use their electricity directly, even if your plan has a high buyback rate. When you use solar energy on-site, you avoid not only the retail rate from your provider, but also the transmission and distribution fees from the local utility.
You can maximize your savings by shifting energy usage to the hours around noon, when your solar panels are at peak productivity. Running appliances such as dishwashers and washing machines during these hours can reduce your dependence on grid electricity while increasing your power bill savings.
Consider Battery Storage
If no solar buyback plans offer high export rates in your area, installing a home battery can be a viable option. By storing surplus solar energy for nighttime use, you can save the full value of each kWh. Home batteries also provide backup energy during power outages, which have become increasingly common in Texas.
Rhythm Energy offers a battery-friendly solar buyback plan, with export rates above 20 cents per kWh between 7:00 p.m. and 9:00 p.m. With a battery, you can store excess solar energy during the day and export it during those hours for maximum compensation. Any remaining stored energy can then help cover your nighttime usage.
Monitor and Adjust Your System
Solar panels have minimal maintenance needs compared with other generation systems, but performance issues can still occur. Photovoltaic cells, inverters and other system components can fail, lowering your system’s electricity output without you noticing. An energy monitoring system can track the performance of your solar array, detecting productivity issues and malfunctions as they happen.
The best solar inverter brands come with built-in monitoring tools, which track energy production in real time via smartphone apps or web dashboards. Some solar installation companies also provide in-house monitoring platforms with automated alerts.
Regulated vs. Deregulated Markets in Texas
In Texas, the deregulated electricity market covers around 85% of the state’s population. If you live in a deregulated area and own a home solar system, you can choose a plan with a solar buyback rate.
However, some areas of Texas still have regulated electricity, with a single municipal power company or electric cooperative in charge of the local service, with no option to switch energy providers. In these cases, you can only access solar buyback rates if the local utility offers them.
Solar Buyback in Regulated Texas Markets
Austin, San Antonio and El Paso are the three largest cities with regulated electricity in Texas. All three cities have municipal power companies with solar buyback options.
- Austin Energy: Offers the Value of Solar rate
- CPS Energy in San Antonio: Offers solar buyback at the retail rate
- El Paso Electric: Offers solar buyback at the retail rate
Dozens of municipal utilities and electric cooperatives serve regulated cities and rural areas throughout Texas. These providers have exclusive service territories, with no overlapping coverage or competition.
In these areas, the availability of solar buyback rates depends entirely on the policies of your specific utility. If you’re considering a home solar system, contacting your provider and confirming if a buyback program is available is a good idea.
Frequently Asked Questions
How do I know if I qualify for a solar buyback plan?
Generally, you qualify for solar buyback plans if your photovoltaic system is professionally installed and connected to the grid according to the technical requirements of the local utility company. However, some electricity providers may have a maximum system size for their solar buyback programs, such as 20 kW or 50 kW.
Are solar buyback credits taxable?
In Texas, solar buyback credits for homes are not usually taxable income, since they apply as bill credits rather than cash payments. However, owning a large solar farm that receives cash payments for electricity production may qualify as taxable income. In these cases, we recommend consulting a tax professional for accurate filing.
Can I switch providers if I’m not happy with my buyback plan?
Yes, but you may need to pay an early termination fee (ETF) if your contract hasn’t ended. Generally, 12-month solar buyback plans have cancellation fees ranging from around $150 to $200. However, Texas law allows you to cancel your electricity plan without paying the ETF if you’re moving to a new address.
How do buyback plans work with solar batteries?
Solar buyback battery plans vary depending on the electricity plan and provider you choose. Some companies, such as TXU Energy and Reliant Energy, pay a fixed solar buyback rate regardless of your battery setup. However, Rhythm Energy offers higher buyback rates for battery systems that supply energy to the grid between 7:00 p.m. and 9:00 p.m., when demand peaks.
Our Rating Methodology
The This Old House Reviews Team supports our energy provider ratings and recommendations with a transparent, research-backed provider review methodology. Our process includes surveying electricity customers in deregulated markets like Texas, analyzing customer review trends, conducting mystery shopping, and consulting with energy experts. Each provider is scored based on performance in customer satisfaction, loyalty, digital experience, and service quality to produce a final rating on a 5-point scale.