Texasnet metering

Net metering in Texas works a little differently than how it does in other states due to how their electricity market works.

Texas’s electricity market is split between regulated and deregulated areas of the state. Around 85% of Texas participates in a deregulated electricity market, while the remaining 15% of the state participates in a regulated electricity market. For residents living in a deregulated area, the supply of electricity is separate from the delivery of electricity. Texans can shop around for electricity rate plans from different electric companies called Retail Electric Providers or REPs. However, they do not have a choice over what Transmission and Distribution Utility or TDU they have. For the rest of Texas homeowners that live in a regulated area, they do not choose an REP. Instead, their municipal utility or electric co-op will handle both the supply and delivery of electricity to their home.

Due to this, Texas does not have a statewide net metering policy. However, several retail electric providers and municipal utilities offer some form of a solar buyback program. For homeowners who live in deregulated areas and who are interested in solar, before choosing an REP they can compare different buy-back plans. As for those living in regulated areas who want solar, they should get in contact with their assigned utility company about their net metering policies.