How Does Net Metering Work in Texas, and Am I Eligible?

How Does Net Metering Work in Texas, and Am I Eligible?

So you’ve invested in solar, or are thinking about doing so, and you want to maximize your investment. In addition to benefiting from renewable energy generated right on site at your home, you also want to sell your excess energy back to the grid!

While in Texas, there are no statewide rules for this process, called “net metering,” some Retail Electricity Providers (REPs) offer programs that are known as solar buyback programs. But not all of these programs are created equal. This article will help you navigate the landscape and get started.

What is Net Metering?

Net metering lets customers offset their electricity use with energy they generate themselves, through solar or wind power capabilities on their property. For instance, if you have solar panels on your roof, the system might create more electricity than your home uses.

When this happens, your meter generates a credit for it, which can be used to offset electricity you use at night or on cloudy days. At the end of each billing cycle, you will be billed only for your “net” energy use, and any credits that you’ve earned will automatically be applied to the next billing period.

Other Financial Benefits of Net Metering

When your home runs on solar or wind power generated on site, not only can you sell the excess back to the REPs for credits, but you are also protected from the fluctuating costs of generating energy through fossil fuels – which can go up and down depending on demand, weather events, and other factors. The savings that you see can really add up over the long term.

Types of Net Metering Plans

Across our state, there are three kinds of net metering plans that are widely used.

Environmental Impact of Net Metering

There are also environmental benefits of signing up for a net metering program.

Reduce Your Carbon Emissions

Solar systems produce zero emissions, unlike power generation plants that run on fossil fuels. Net metering encourages customers to use solar power, leading to a cleaner mix of energy throughout the state.

Ease Strain on the Power Grid

Net metering also lets REPs distribute the excess power generated by homes with solar during periods of peak demand, enhancing the stability of the grid and helping prevent brownouts and blackouts.

Choosing the Right Net Metering Plan

When considering if a net metering plan is right for you, it’s important to look closely at the REP you’ll be working with. You have a choice of which REP to work with, and it’s up to them to bring you the best offer in terms of credit rates and plan details.

But it’s also important to consider the reputation of the REP, broadly speaking. Read customer reviews online to check out their reputation, responsiveness, and hear whether your neighbors are satisfied with the service they receive.

At Rhythm Energy, our customer service is top notch, and so are our solar buyback plans.

Common Misconceptions About Net Metering

One misconception is all REPs offer the same net metering rates and policies. Each REP has their own plan, and the best way to find out is to contact REPs that you’re considering in order to find out the details on buyback credits, rates, and more.

Another misconception is that net metering is too expensive, because solar systems require too much of an up-front investment. This is less and less true as developments in solar technology come to the market, and as more rebates and tax incentives are put into place. For a deep dive into advances in solar systems and how they can be a worthwhile investment, read our article Are Solar Panels Worth It in Texas?

Future Trends in Net Metering Policies

At some point in the future, Texas may join the 38 states that have statewide net metering regulations, so the process would become standardized. But this isn’t the case yet. One great way to stay up to date on trends and changes to our state’s policies is by following the news from the Electricity Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT). You can also contact your REP for updates.

Renewable Energy Resources

For more information on myths related to solar energy in Texas, and detailed information about incentives, visit our article on Texas Solar Incentives.

How to Participate in Net Metering with Rhythm Energy

Ready to find out if you’re eligible to participate in Rhythm Energy’s solar buyback plans? Click here to learn more, or reach out to us at any time to start the conversation. We’re ready and here to help!

FAQs

What happens if my solar system generates more electricity than I use?

You can sell the excess energy back to the grid, by signing up for solar buyback plan with your Regional Electricity Provider.

How common is net metering in Texas?

More than 200,000 homes and businesses in Texas currently participate in net metering programs.

What kind of maintenance do net metering systems require?

You’ll need to keep up with your solar system, to make sure it’s operating at peak efficiency. This means cleaning and maintaining your panels (or having it done professionally) to make sure that everything is in working order. You’ll also want to ask your REP about any special considerations when it comes to your meter.

Can renters participate in net metering in Texas?

If you have solar panels on your property, whether you own or rent, then you can participate in net metering and solar buyback plans.