Rate & Roof

Estimate, not adviceFacts checked 2026-10-21

Does Texas have net metering?

Not statewide. Texas law lets you connect solar to the grid and sell surplus power to your provider at a value you both agree to, but it does not require a retail-rate credit.

Numbers on this pageeach one sourced below

Short answer in numbers

Statewide net metering mandate
None foundin the texts below
Distributed generation covered by 39.916
2,000kW or less, customer side of the meter
Warranty needed to interconnect
5years (39.916)
Single meter that runs backward
NarrowPUCT rule 25.213(c) only

What net metering means

Net metering is a billing rule in which power sent to the grid runs the meter backward, or is credited at the retail rate, so the bill reflects only the difference between use and production. Many states require it. Texas does not have a statewide requirement of that kind.

What Texas law does say

  • Utilities Code 39.916 requires a utility to allow interconnection of on-site generation of 2,000 kW or less if it carries a five-year warranty and fits the service capacity.
  • In competitive areas the owner "must sell the owner's surplus electricity" to the REP serving the home "at a value agreed to" by the two. The provider "may contract" to credit the net value.
  • PUCT rule 25.217 repeats this: surplus is sold at "a value to which both parties agree".
  • PUCT rule 25.213 says owners "may begin selling out-flow at any time" and requires utilities to offer a two-meter or outflow-measuring setup on request.

Sources: Utilities Code 39.916, rule 25.217, rule 25.213.

The narrow exception

Rule 25.213(c) says utilities covered by a specific part of the Utilities Code must offer "interconnection through a single meter that runs forward and backward", but only for a small set of customers: low-income elderly apartment houses, or a qualifying facility of 50 kW or less. That is why this page says Texas has no statewide net metering requirement rather than that net metering exists nowhere in the state.

So where does the credit come from?

From your plan. Retail providers set their own buyback terms, and some offer credits close to the retail price while others pay far less. City utilities and co-ops set their own. The buyback plans guide lists where to read the terms, and the structures comparison shows how the shape of a plan changes the first-year value.

Questions

Can my provider refuse to buy my power?

The Power to Choose site says a company "is not required to purchase this power". That is the provider's choice, not a state mandate.

Does the 2,000 kW figure matter for a house?

No. A rooftop system is a few kW. The figure is the ceiling for what counts as distributed renewable generation under 39.916.

Is there a statewide required price?

None was found in the statute or the PUCT rules read for this page.

This page is general information, not advice for your situation.

Not verifiedleft out on purpose

Excluded, not guessed.

  • Text of PUCT rule 25.242, the buyback value standard for areas without customer choice referenced by 25.217 but not read
  • A PUCT or ERCOT sentence saying outright 'no statewide net metering' not found in those words; the statement here rests on the statute and rules

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Rates change. Get told.

One list, for Texas solar buyback plans. We write when a tracked rate changes and when new city data is published. Nothing else, and nothing until you confirm.

Read this first

  • Estimates from public data and a stated model, not a quote, a bill or advice.
  • Every number on this page is sourced below with its date. Anything that could not be verified is listed as excluded.
  • All prices on this site are in cents per kWh unless marked otherwise. Bills are US dollars per month.

Credits and notices

The credits and notices that each data source requires are printed word for word with that source in the Sources list below.