Understanding Texas Net Metering in 2025:
How Oncor Credits Work

Texas net metering is genuinely more complicated than in most states — and unfortunately, a lot of information online describes how it works in California or New York, not Texas. DFW homeowners on the Oncor grid need to understand a distinct set of rules. Here’s a practical guide to exactly how your credits work in 2025.

Why Texas Net Metering Is Different

Most states have mandatory net metering laws requiring utilities to credit solar customers at the full retail electricity rate for every kWh they export. Texas does not have a statewide net metering mandate. Instead, individual utilities set their own buy-back policies under PUCT oversight — and many retail electric providers (REPs) offer solar buy-back plans that operate on a competitive market basis.

If you’re in the Oncor service territory (most of Dallas, Fort Worth, and the DFW suburbs), your solar export credits are negotiated between your chosen REP and the grid.

How Oncor’s System Actually Works

Oncor is the poles-and-wires company — they deliver electricity but don’t sell it. Your Retail Electric Provider (REP) — TXU, Green Mountain, Reliant, Gexa, etc. — is who you pay for electricity. The REP is also who credits you for solar exports.

Under most solar buy-back plans in Texas, the credit rate for exported kWh is lower than the retail purchase rate. Common structures include:

• Avoided cost credit: ~$0.03–$0.05/kWh for exports (vs. $0.12–$0.16/kWh retail purchase price)
• 1:1 net metering plans: Some REPs offer full retail credit for exports — these are the best plans to seek out
• Value of Solar Tariff (VOST): A utility-calculated rate based on the grid value of solar, typically $0.09–$0.12/kWh

Optimizing Your System for Texas Net Metering Rules

Because Texas buy-back rates are often lower than retail rates, the financially optimal strategy is self-consumption — using the power you generate rather than exporting it. This changes system design in important ways:

• Right-sizing matters: Oversized systems export excess production at low credit rates. We model your system to produce ~95–105% of your annual consumption.
• Battery storage becomes more attractive: If exports earn $0.04/kWh but storing for evening use displaces $0.14/kWh electricity, batteries pay off faster in Texas than in 1:1 net metering states.
• Time-of-use awareness: Some Texas REPs charge more during peak demand periods (3–7 PM weekdays). A battery system can charge during cheap midday solar and discharge during expensive peak hours.

What to Expect on Your Monthly Bill

With a properly sized system and a good solar buy-back plan, here’s a realistic monthly picture for a DFW homeowner:

• Solar production covers 80–100% of consumption on most days
• Nocturnal and cloudy-day usage pulls from grid at retail rate
• Excess daytime production earns credits at buy-back rate (varies by plan)
• Oncor delivery charges (~$35–$50/month) remain regardless of solar — this is the minimum monthly charge
• Net result: Most DFW solar homeowners pay only Oncor delivery fees ($35–$50) most months

That last point is important: no solar system eliminates the utility connection fee. Your Oncor delivery charge remains because you’re still connected to the grid. But your energy supply charge — typically $150–$250/month — can go to near zero.