Installing rooftop solar panels is one of the ways Texas residents can lower their energy bills by drawing less energy from the grid. Homeowners can save even more with solar buyback or net metering programs, which reimburse you for the energy you produce.

But how exactly do Texas solar buyback programs work, and how much money can you make selling solar power back to the grid?

Let’s take a look at Texas solar buyback options, and how to choose the best electricity plan and solar buyback plan for your household.

What Is a Solar Buyback?

Most solar panels can produce around 250 to 400 watts of electricity, and a 20-panel residential solar system is usually enough to power a typical house. But since solar panels only produce energy during peak hours of sunlight, you may end up with insufficient energy on cloudy days and excess energy in the middle of summer.

Although you can store energy for later with a home energy storage system, in many cases, you’ll be better off connecting your solar panels to the power grid.

In Texas, a solar buyback program is the method your retail electric provider uses to credit you for the excess electricity you generate.

Can You Get Money Back from Solar Panels?

Yes, there are several ways you can get money back from home solar panels. You may be eligible for rebates, tax credits, and other solar installation incentives from your local, state, or federal governments. You can also get a credit from your retail electricity provider (REP) by selling your surplus energy back to the grid.

The amount of money you get back not only depends on how much electricity you use but also how much energy your solar panels produce. If you use all of the solar power you generate, then you won’t benefit from a solar buyback program.

But if you have any excess solar power, your energy company will measure your solar generation by kilowatt-hour and credit you for any excess energy you produce.

Is Solar Buyback the Same as Net Metering?

In some states, electric companies use a system called net metering to reward you for generating solar power in real-time. Each kilowatt-hour that your solar energy system contributes to the grid cancels out one kilowatt-hour of energy usage.

You won’t get a check in the mail for your surplus electricity, but your electricity bill will be reduced at a 1:1 ratio. It’s as if your electric meter runs backwards—in some cases, literally—when your solar panels produce excess energy.

Because Texas has a deregulated energy market, Texas solar buyback programs work a little differently. Retail energy providers are allowed to set their own energy rates as well as their solar buyback rates. Although some companies use net metering, others offer a wide range of solar buyback plans to choose from.

What Is a Good Payback for Solar?

According to Market Watch, it takes an average of 6 to 10 years to pay off your solar installation. That doesn’t mean you won’t get money from a buyback program during that period, but it may take time to see a return on your original investment.

After that, you can save anywhere from $44 to $187 per month on your electricity bill, depending on the amount of power you generate and your home energy usage.

How Much Money Can You Make Selling Solar Energy Back to the Grid?

Texas Solar Buyback Panels Set up in Home Back Yardsource

The money you can make selling solar back to the grid depends on where you’re located and the type of buyback program your provider offers.

In Austin, Texas, which doesn’t have a deregulated energy market, the Value of Solar rate is set at 9.91 cents per kilowatt-hour for systems smaller than 1 MW-AC. This rate applies to your total solar energy production—not just surplus generation—and you’ll see it reflected on your Austin Energy electricity bill.

In deregulated parts of Texas like Dallas and Houston, solar buyback rates are based on real-time market prices. The amount of money solar owners can earn depends on energy demand, which can spike during rolling blackouts and power outages.

The Electric Reliability Council of Texas (ERCOT) limits the wholesale energy rate at $5,000 per megawatt-hour, but at times it can even go into the negative.

How Do Texas Solar Buyback Programs Work?

Many Texas energy providers, such as Green Mountain Energy, TXU, and Reliant, offer a range of solar buyback options to residential customers with solar panels.

Some companies offer net metering, in which the energy you use is directly offset by the excess energy you contribute. Others pay for excess solar energy using feed-in tariffs or the wholesale electricity rate, which may be lower than the retail rate.

It’s important to read the Electricity Facts Label to understand the terms and conditions of your Texas solar buyback plan. Some plans may cap the amount of solar bill credits you can receive or restrict the amount you can roll over to next month’s bill.

Even if you offset all of your energy usage, you’ll still need to pay Transmission and Delivery Utilities (TDU) fees on any energy you consume from the grid.

Call Just Energy at 866-550-1550 for Great Energy Rates

Can I Take Solar Buyback Credits with Me?

In most cases, you won’t be able to take your credits with you if you switch electricity providers in Texas. However, some companies may allow you to receive any unused credits in cash at the end of your contract period. As with many electricity plans, you may have to pay an early termination fee if you choose to end your contract early.

How Long Does It Take to Earn Money from Solar Buyback?

When you first install solar panels on your home, you won’t see energy credits on your bill right away. There are several steps you’ll need to take to get started.

First, you’ll need to ensure you have a smart meter or two-way meter that can track your surplus energy generation. If you already have a smart meter, your local utility company (i.e., Oncor) may be able to reprogram it for solar energy metering.

Also, you’ll need to sign an interconnection agreement that grants your retail electricity provider “permission to operate” your solar energy connection with ERCOT.

Once you’ve taken these steps, your energy provider will do the rest, and you should see your energy credits appear within three billing cycles.

Is Selling Solar a Good Idea?

Texas Solar Buyback Tech Climbs Roof for Installsource

Installing solar panels at home isn’t the only way to earn money from renewable energy. As the clean energy market grows, many energy companies are looking for sales reps to sell solar panels to eligible residential customers.

As a solar sales rep, you’ll need to have a good understanding of the electricity market and be able to communicate the benefits of installing a home solar system.

Fewer than 2.5% of homes in the U.S. have a solar system, so there’s plenty of room for growth in the sector if you’re looking for a new career.

Is Being a Solar Sales Rep Worth It?

Being a solar sales rep is typically a commission-based job, so what you get out of it will depend on what you put into it. If you have the time to do the job, you can make a significant amount of money with each sale.

At the same time, closing a solar sale may require multiple conversations with the same customer, and you may face competition from other solar sales reps.

According to Zippia, solar sales reps can earn $79,000 per year, but this will depend on your skills, location, and the size of the company you work for.

Why Are Solar Companies Going Door-to-Door in Texas?

The solar energy market is booming in Texas, and many solar energy companies are going door-to-door in order to sign up customers. Although many door-to-door sales reps are legitimate, solar scams are a concern in Texas too.

Sales reps may promise energy savings that are too good to be true or mention tax credits that only apply to certain income brackets.

Before installing a home solar system, shop around for multiple quotes to determine how many solar panels you need and how much it will cost you.

What Are the 11 States That Get Free Solar Panels?

Unfortunately, there aren’t any states that currently offer free solar panels—that’s just a marketing gimmick used to advertise power purchase agreements (PPAs), which are basically programs that let you “rent” solar panels.

With a PPA, you can gain access to solar power without the upfront installation costs, but you won’t benefit from free energy or solar buybacks; you’ll just pay a lower rate than you would for grid power.

However, many states do offer tax breaks, rebates, Solar Renewable Energy Credits (SREC), and other incentives to install solar panels.

For example, in Texas, you can get an exemption on property taxes, so you don’t have to worry about new solar panels driving up the cost of your tax bill.

What Is the Best State to Sell Solar In?

According to Forbes, California is leading the way when it comes to solar energy, with more than 75,000 jobs in the solar energy sector. New York, Florida, Texas, and Massachusetts round out the top 5, with around 10,000 jobs each.

Texas generates the second-highest amount of solar power out of any state, with at least 16,000 megawatts of generating capacity.

The state’s substantial amounts of sunshine and growing population make it a major market for solar energy companies

Can You Use Solar Energy Without Installing Solar Panels?

Texas Solar Buyback Solar energy Man Checks Readings on Phonesource

Solar panels aren’t for everyone. Maybe you don’t own your own home, or you just don’t want to invest in the upfront cost of installing solar panels. Fortunately, many energy companies in Texas offer green energy plans that allow you to offset 100% of your energy usage with solar energy.

With Just Energy, you can power your home using renewable energy without having to install solar panels yourself. Enter your ZIP code below to find out your rates.

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