There are over 85 utilities in Texas from Retail Choice areas, Municipal, Cooperative, and Investor Owned Utilities. With no state net metering law, the utilities offer a wide variety of solar buyback policies.
Top Takeaways:
In Retail Choice areas, select a Retail Energy Provider with a solar buyback rate. Palmetto offers a Solar Buyback Plan and Battery Bonus Plan.
Most TX utilities offer an export credit for excess solar
Austin Energy provides a Value of Solar rate for Total Solar Production
Deregulation & Retail Energy Providers
The majority of Texans live in Retail Choice areas where they can choose their Retail Energy Provider (REP). The REP provides the generation pricing terms of supplying the electricity and the physical utility bill while the wires company (called Transmission & Distribution Utilities TDUs) delivery the electricity through the wires and infrastructure.
TDUs with Retail Choice include:
Oncor
Centerpoint
AEP North & Central
TNMP
Lubbock Power & Light - A municipal utility turned TDU in 2024
Palmetto LightReach highly encourages retail choice customers to consider Palmetto's Retail Energy Plan* or Battery Bonus Plan, which are also accessible in your app.
Insider Tip: The Battery Bonus Plan is the same as the Retail Energy Plan with additional bill credits.
*The link only works for those located in Texas.
Even if you do not select Palmetto's Retail Energy Plan, we encourage you to shop around for a REP with a solar buyback rate to ensure you receive credit for excess solar sent to the grid.
Pairing Battery Energy Storage with your LightReach solar system is a smart way to use more solar electricity in your home reducing the amount electricity you need to purchase from the grid at the retail rate.
Municipal, Cooperatives, & Regulated Investor Owned Utilities
Select your utility to learn more
Austin Energy
Austin Energy
Austin Energy's Value of Solar Rate (VOS) is the most unique solar policy in the United States. It's similar to Feed-In-Tariffs used in Australia and Europe.
Total Solar Produced (100% of Solar Generation) is multiplied by the VOS rate for a utility bill credit. The VOS rate is currently 9.91 cents per kWh.
Total Home Consumption -- both directly from solar or the grid -- is charged the tiered, residential utility rate that you pay today.
How Does Value of Solar Work?
Click to expand
Click to expand
Production: Austin Energy meters your solar production and credits 100% of that production at the Value of Solar rate (currently 9.91 cents/kWh).
Consumption: Austin Energy charges solar customers for all their energy consumption. Whether energy comes from your solar system or the grid, you will see Total kW
h Consumed on your utility bill charged the retail utility rate. The average residential rate per kWh in 2025 in Austin is 12 cents per kWh.
Solar Credit: Austin Energy applies your Solar Bill Credit to your electric bill charges. Excess Solar Bill Credit carries over month-to-month and is non-transferable. Your Solar Bill Credit only applies to your electric charges. It does not apply to any other utility services, such as water, solid waste, street services, etc.
Do Leased Solar Systems qualify for the rebate?
No, leases do not receive Austin's rebate.
No, leases do not receive Austin's rebate.
Austin Energy does not provide rebates to projects under Lease Agreements. While Palmetto LightReach customers are not eligible for the rebate, and DO NOT have to take the solar quiz, we encourage you to review the Solar Education Course.
Sample Solar Utility Bill
View two sample bill explainers from Austin Energy in pdf and interactive
View two sample bill explainers from Austin Energy in pdf and interactive
How do I calculate my Lease savings with the VOS rate?
You will save the difference between the VOS rate and your Lease cost per kWh. Here's how to calculate it:
You will save the difference between the VOS rate and your Lease cost per kWh. Here's how to calculate it:
Locate your Palmetto LightReach Lease agreement and find your Starting Lease Payment and Estimated Annual Production the first year.
Multiply your Starting Lease Payment by 12 months and divide by the Estimated Annual Solar Production.
For example, $75 * 12 months divided by 10,000 kWh annual production the first year = 9 cents per kWh.
You will save the difference of the VOS rate and your Lease cost per kWh.
Continuing the example: 9.91 cent VOS - 9 cent Lease Cost = 0.9 cents per kWh. On 10,000 kWh of electricity production that's a savings of $910 the first year!