The Texas electricity market operates under a deregulated structure that separates the physical delivery of electricity from its retail sale. This distinction is foundational for accurate solar savings research.
Role of the TDU (The Utility)
The Transmission and Distribution Utility (TDU) is the regulated entity responsible for the physical grid infra — the poles, wires, and meters. TDUs are regulated monopolies in their respective territories.
Non-Competitive
You cannot choose your TDU. It is assigned by your physical address.
Delivery Charges
They assess fixed delivery fees that remain on your bill regardless of solar production.
Role of the REP (The Provider)
The Retail Electric Provider (REP) purchases power on the wholesale market and sells it to you. In deregulated zones (ERCOT), you choose your REP via competitive offers.
Solar Intersection
Your REP determines the "Solar Buyback" or export credit terms. High commodity rates from your REP increase the value of your generated solar energy, while TDU charges represent the "fixed floor" of your electricity bill.
Structure FAQ
The commodity rate offered by a REP affects the portion of the electricity bill that solar generation can offset. Higher commodity rates generally increase the estimated savings yield from a given solar system output, while lower commodity rates reduce that yield. GetSunScore's modeled projections use a publicly available 2024 statewide average rate baseline, which may differ from your individual REP contract terms. Users should apply their own contract rate to assess savings scenarios specific to their REP arrangement.
No. TDU delivery charges are fixed infrastructure fees assessed independent of how much electricity a customer consumes or generates. Solar generation offsets commodity energy usage, but TDU delivery charges — including metering, distribution, and transmission components — remain on the bill. The SunScore™ Projection Engine accounts for this in its net savings modeling.