Definition and Solar Context
A solar buyback plan is a retail electricity plan offered by Texas retail electric providers (REPs) that provides compensation to solar system owners for excess energy exported to the grid. These plans are a central feature of the deregulated Texas solar market.
Buyback plans govern the value of solar generation that is not consumed directly on-site. GetSunScore incorporates buyback plan data into the SunScore™ Projection Engine as a key production-side variable when modeling savings in Texas utility territories.
What Does Buyback Plan Mean?
In Texas, a buyback plan refers specifically to the terms under which a provider purchases surplus solar power from a residential customer. Unlike traditional net metering elsewhere, Texas buyback plans often apply a credit rate lower than the retail purchase price of electricity.
Common buyback structures include Real-Time Wholesale (RTW) pricing or fixed cents-per-kWh credits. Some plans may include monthly fee caps or credit expiration rules. The economic benefit of a buyback plan is secondary to direct Avoided Cost through self-consumption.
Why Buyback Plans Matter in Modeling
Buyback plan terms are critical to accurate solar savings modeling in Texas. The SunScore™ Projection Engine applies provider-specific credit rates to the estimated volume of grid-exported solar energy.
Changes in buyback plan availability or pricing can shift the estimated payback period for a residential system. GetSunScore references publicly available 2024 plan data to ensure modeling reflects current market conditions in ERCOT territories.
How Buyback Plans Apply in Texas
Buyback plans are the primary mechanism for export compensation in deregulated areas of Texas served by Oncor, CenterPoint, and other TDUs. Customers have the right to shop for buyback plans through various retail electric providers.
The SunScore™ Projection Engine evaluates buyback plans alongside Utility Rate Structures to produce localized savings estimates. Homeowners are encouraged to review the Utility Analysis Hub for regional data.
Frequently Asked Questions
A solar buyback plan is a specific retail electricity contract offered by a Texas retail electric provider (REP) that includes terms for compensating homeowners for excess solar electricity fed back into the grid. Policies vary by provider.
In Texas, 'buyback plan' is the common term for export compensation within the deregulated ERCOT market. While similar to net metering, buyback plans often credit excess energy at a lower rate than the retail price, such as the RTW (Real-Time Wholesale) rate.
The SunScore™ Projection Engine applies provider-specific buyback rates to estimated exported production. Projections account for these rates to provide a more accurate estimated savings range for Texas homeowners. Results are non-binding estimates.
Yes. Homeowners in deregulated Texas markets can choose from multiple providers offering different buyback structures. Comparing plans is essential for optimizing the financial performance of a residential solar system.
GetSunScore references publicly available retail electric provider rate postings and Electricity Facts Labels (EFLs) for January 2024 to calibrate modeling variables. Users should verify current rates directly with providers.
Buyback plan data referenced is sourced from publicly available 2024 REP filings and is for informational modeling purposes only. Terms are subject to change by providers.