One solar kilowatt-hour can create value in two different ways
Solar electricity used immediately in the home can reduce electricity that would otherwise have been imported from the grid.
Solar electricity produced in excess of household demand flows to the grid and receives whatever compensation is provided by the applicable retail plan or utility arrangement.
Those two values do not have to be equal. Understanding the difference is important because the share of solar used on-site versus exported can materially change the economics of the same physical system.
Avoided Volumetric Cost
Reduces electricity imported from the grid, avoiding the variable portions of the electric bill.
Plan-Specific Export Compensation
Receives whatever compensation the applicable retail electric plan or utility tariff provides.
Self-consumption and export are different transactions
Electricity used on-site
When solar generation is consumed behind the meter, it reduces the amount of electricity that must be imported at that moment.
The economic benefit is therefore tied to the portions of the electricity bill that vary with imported consumption. Fixed charges remain separate.
Electricity exported
When solar production exceeds household demand, the surplus flows to the grid.
Its value is determined by the applicable export arrangement. In competitive retail areas that generally means the relevant REP plan; municipal utilities and cooperatives use their own tariffs or policies.
Why the two values may diverge
A retail electricity price can include several components associated with supplying electricity to a home. An export credit, by contrast, is determined by the compensation terms offered for electricity sent back to the grid.
Because those are different transactions, the prices do not have to match.
Depending on the plan, export compensation may reference a fixed credit, a market-related value, another formula, or conditions such as monthly limits. None of those structures should be assumed without checking the applicable plan.
The Texas market context
Texas does not impose one universal retail solar-export compensation structure across all service territories.
In competitive retail areas, export terms are generally defined by individual REP plans. Municipal utilities and electric cooperatives may use different tariffs or distributed-generation policies.
The practical consequence is simple: a homeowner cannot infer export value from the advertised retail electricity rate alone.
For a broader explanation of Texas export-credit structures, see Texas Solar Export Credits Explained →
An example of split valuation
These numbers are illustrative only and are not a Texas average, current tariff, export benchmark, or forecast.
1. Value of Self-Consumed Solar: 700 kWh × $0.145 = $101.50 (avoided volumetric grid purchases)
2. Value of Exported Solar: 300 kWh × $0.050 = $15.00 (plan-specific export credit)
3. Combined Monthly Solar Value: $101.50 + $15.00 = $116.50
How export value can change system economics
As solar production grows relative to household consumption, a larger share of generation may be exported.
If exported electricity receives less economic value than electricity consumed on-site, the incremental value of additional solar production can decline. That does not make a larger system inherently uneconomic; it means system size should be evaluated together with household load, installed cost, and the applicable export terms.
GetSunScore treats this relationship as a sensitivity rather than assuming one universal “right” system size.
Why the timing of electricity use matters
Household demand that occurs during solar-production hours can increase the share of generation consumed on-site.
Loads such as pool equipment, laundry, dishwashing, or electric water heating may sometimes be scheduled during daylight hours when practical. The actual opportunity depends on the home and equipment.
How GetSunScore handles the uncertainty
Because export compensation varies by retail plan and changes over time, GetSunScore does not model a single static buyback rate. Instead, our calculator employs explicit sensitivity bands across three scenarios:
| Scenario | Modeled Self-Consumption | Export Value vs. Retail Rate |
|---|---|---|
| Conservative | 55% | 30% of retail baseline |
| Base | 70% | 50% of retail baseline |
| Favorable | 85% | 70% of retail baseline |
These values are model sensitivities, not predictions of a specific household's consumption pattern or a specific electricity plan.
Continue the analysis
Texas Solar Export Credits Explained →
Overview of solar buyback uncertainty in Texas.
Avoided Cost Explained →
The utility procurement benchmark used for solar export credits.
Texas Solar Payback Guide →
How capital costs, yields, and rate structures combine into payback ranges.
Charges Solar Does Not Eliminate →
Fixed and delivery fees that remain regardless of solar generation.