Utilities and Solar Permitting Processes
- Major Utilities:
- Oncor Electric Delivery: Oncor Solar Programs
- Austin Energy: Austin Energy Solar Program
- CPS Energy (San Antonio): CPS Energy Solar Information
- Solar Permitting:
- Local jurisdictions set permitting requirements. Permitting timelines are generally less restrictive compared to other states.
Net Metering:
- Texas lacks a statewide net metering policy.
- Utility Highlights:
- Austin Energy: Offers Value of Solar (VOS) credits instead of net metering, compensating customers for excess solar at rates that vary annually.
- CPS Energy: Provides a net metering program, crediting customers at retail rates.
- Oncor: Does not offer net metering but supports distributed solar interconnections.
- Ranking:
- Austin Energy: Best compensation through VOS program.
- CPS Energy: Offers straightforward net metering.
- Oncor: Lacks direct compensation for excess solar.
State Incentives:
- Texas Solar Incentive Programs:
- Austin Energy Solar Rebate: Up to $2,500 for residential installations.
- CPS Energy Rebate: Offers $2,500 for systems up to 25kW.
- Property Tax Exemption: 100% exemption on the added value of solar installations.
Permitting/Interconnection:
- Interconnection:
- Rules vary by utility. All require submission of an interconnection agreement for exporting solar systems.
- Challenges:
- Deregulated energy market complicates interconnection policies across utility service areas.
Net Metering Rates
Texas lacks a statewide net metering policy; compensation rates are determined by individual utilities and Retail Electric Providers (REPs). This results in a wide range of rates:
- Average Rate: Approximately $0.07 to $0.09 per kilowatt-hour (kWh).
- Minimum Rate: Some REPs offer as low as $0.02 per kWh.
- Maximum Rate: Certain plans provide up to $0.10 per kWh.
Utility-Specific Rates:
- Austin Energy:
- Average Rate: $0.097 per kWh.
- Minimum Rate: $0.097 per kWh.
- Maximum Rate: $0.097 per kWh.
- CPS Energy:
- Average Rate: $0.015 per kWh.
- Minimum Rate: $0.015 per kWh.
- Maximum Rate: $0.015 per kWh.
- Oncor Electric Delivery:
- Note: Oncor is a transmission and distribution utility; net metering rates are set by individual REPs within its service area.
Note: These rates are subject to change based on market conditions and specific REP offerings.
What Are REPs in Texas?
- Definition: Retail Electric Providers (REPs) are companies in Texas’ deregulated electricity market that sell electricity directly to consumers. Unlike utilities, REPs do not own the transmission or distribution infrastructure but manage billing, plans, and customer service.
- Role in Net Metering:
- REPs determine the compensation rate for excess solar energy produced by residential customers with solar installations.
- Since there is no statewide net metering policy, these rates vary widely among REPs.
Specific Example of Low Rates in Texas
- Some REPs base their solar buyback programs on wholesale electricity market prices rather than retail rates. Wholesale prices in Texas can dip as low as $0.02/kWh during periods of low demand or high generation, such as midday when solar output is at its peak.
- Specific REPs Offering Low Rates:
- Certain smaller REPs with limited solar programs may offer these low rates, but they typically do not market heavily to solar customers.
How Texas’ Deregulated Market Impacts Solar Owners
- Positive Aspect: Solar customers have options to shop around for REPs with competitive solar buyback plans.
- Challenges:
- Rates are not standardized, and many REPs provide limited transparency about solar buyback rates.
- Some plans may also include additional fees, reducing the overall value of excess energy compensation.
REPs Offering Competitive Rates
The following REPs are recognized for offering competitive solar buyback plans. For the full list, visit the Texas Power Guide. You can also go directly to their calculator.
- Rhythm Energy
- Plan: PowerShift Solar Buyback 12
- Details: This time-of-use plan offers varying rates for electricity consumption and solar buyback during off-peak, on-peak, and ultra on-peak hours. Customers are credited for excess solar generation at rates corresponding to these periods. It’s important to note that customers cannot be net exporters; the REP will not purchase more power than the amount consumed.
- Champion Energy Services
- Plan: Champ Saver 12
- Details: Offers real-time market-based credits for excess solar generation, allowing customers to benefit from higher wholesale prices during peak demand periods. Credits roll over with no expiration, but there is no cash-out option.
- Chariot Energy
- TXU Energy
- Plan: Solar Buyback Match
- Details: Credits customers for excess solar generation at the same rate they pay for electricity consumption, effectively offering a 1:1 buyback rate. This plan is suitable for homes that send a high amount of solar energy to the grid.
- Gexa Energy
- Plan: Gexa Solar Export Saver 12
- Details: Offers a fixed-rate plan with a 12-month contract, providing bill credits for each kWh of solar power exported to the grid. Gexa Energy also offers a 60-day satisfaction guarantee, allowing customers to switch plans without a fee if not satisfied.
Considerations When Choosing a Plan:
- Rate Structure: Understand whether the plan offers fixed rates, time-of-use rates, or market-based rates for both consumption and solar buyback.
- Credit Rollovers: Check if unused credits roll over to future billing cycles and if there’s an expiration period.
- Cash-Out Options: Determine if the plan allows for cashing out unused credits or if they can only be applied to future bills.
- System Size Limitations: Some plans may have restrictions on the size of the solar system eligible for the buyback program.
It’s advisable to review the Electricity Facts Label (EFL) of each plan and consult with the REP to ensure the plan aligns with your energy consumption patterns and solar generation capacity.
