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How do solar buyback plans work in Texas?

Updated November 3, 2026 · By Sean Janoe

Your panels make power while the sun is up. Your home uses some of it, and the rest flows out to the grid. A solar buyback plan pays you for that rest.

sent backdrawn

Of the 598 plans Kilowhiz priced on Nov. 3, 2026, 8 build a buyback credit into their price. 2 say a home with solar panels can't have the plan at all.

The 598 plans priced on Nov. 3, 2026, one dot each

Of 598 plans, 8 build a buyback credit into their price and 2 say a home with solar panels can't have the plan.

  • 8 build a buyback credit into their price
  • 2 say a home with solar panels can't have the plan
  • the other 588

Two arrows, one meter

On a sunny afternoon your panels make more power than the house can use. The extra flows out through your meter to the grid. That is power you send back.

After sunset the panels stop, and the house pulls power in from the grid. That is power you draw.

Your smart meter counts both, every 15 minutes, as two separate numbers.

One made-up sunny day

From mid-morning to late afternoon the panels make more than the home uses, and the extra is sent back. In the morning, the evening and at night the home draws power from the grid.

  • Sent back
  • Used straight from the panels
  • Drawn from the grid
  • What the panels make
  • What the home uses
15-minute reading · 1:00 pm
Drawn0.00 kWh
Sent back1.02 kWh
15-minute reading · 9:00 pm
Drawn0.41 kWh
Sent back0.00 kWh

Two numbers, two prices

Every plan charges you for the power you draw. A buyback plan also pays you for the power you send back, at its own rate per kilowatt-hour (kWh).

Sent back at noonEarns the buyback rate
Drawn at 9 pmCosts the plan's price plus delivery charges

The two are counted apart. A kWh you send back at noon earns the buyback rate. A kWh you draw at 9 pm costs the plan's full price, plus your utility's delivery charges, the cost of the poles and wires. You pay delivery on every kWh you draw, however much you send back.

Where you choose your electricity provider in Texas, each provider decides whether it pays for power you send back, and how much.

Four numbers on the label

Every plan comes with an Electricity Facts Label (EFL), the one-page sheet of a plan's prices and fees. On a buyback plan, four numbers on it decide what the panels earn you.

Electricity Facts LabelExample buyback plan
made up for this page
1Energy Charge: 15.0¢ per kWh
2Buyback Credit: 5.0¢ per kWh of excess energy exported
3The Buyback Credit may offset up to 100% of your monthly Energy Charges. It does not apply to delivery charges.
4The average price per kWh includes a Buyback Credit for 400 kWh of excess energy exported each month.
  1. 1The price per kWh. What you pay for each kWh you draw.
  2. 2The buyback rate. What the plan pays for each kWh you send back.
  3. 3The limit. On some plans the credit stops once it has paid off the month's energy charges. It never pays the delivery charges.
  4. 4The assumed amount. The advertised price on a buyback plan's EFL counts a credit for a set amount of power sent back each month. Send back less, and your price per kWh comes out higher than the advertised one.

One made-up home, one month

Here is the math on a made-up home and two made-up plans. The home draws 900 kWh from the grid in a month. Delivery is 7¢ per kWh and $4 a month on both plans.

The plain plan charges 13¢ per kWh and pays nothing for power sent back. The month costs $184.00, however much the panels send back.

The buyback plan charges 15¢ per kWh and pays 5¢ for each kWh sent back. The month costs $202.00 before the credit.

The month's bill on each example plan

Plain plan

$184.00

Buyback plan

$172.00

Against the plain plan

$12.00 less

kWh sent back in the month

Sent backCreditBuyback planAgainst the plain plan
150 kWh$7.50$194.50$10.50 more
360 kWh$18.00$184.00the same
600 kWh$30.00$172.00$12.00 less

The buyback plan's higher price adds 2¢ to each of the 900 kWh drawn, which is $18.00. At 5¢ a kWh, it takes 360 kWh sent back to earn that $18.00. Above 360 the buyback plan costs less. Below it, the plain plan does.

So the answer rests on two numbers from your own home: what you draw and what you send back. Your meter has both.

How Kilowhiz prices it for your home

Kilowhiz runs that same math on every plan in your area, with your own meter readings in place of the made-up numbers.

What you see

Pick Buyback plans in the Solar buyback filter to see only the plans that pay for power you send back.

Every plan says what your panels earn on it, in dollars, from your own readings. A plan with no buyback says that too: Pays nothing for the power you send back.

A chart shows the power you sent back, month by month. Beside your top plan we show the first plan in your ranking without a buyback, so you can see what the buyback is worth for your home.

Illustration · made-up home
Solar buybackBuyback plans ▾

A made-up buyback plan · 12 months

Pays 5¢ for each kWh you send back · about $235 a year on your 4,700 kWh

A made-up plain plan · 12 months

Pays nothing for the power you send back

Power you sent back

4,700 kWh

Month by month, as your readings show it. The made-up buyback plan pays 5¢ for each kWh: about $235.

Made-up power sent back by month, January to December: 260, 300, 420, 480, 520, 470, 410, 400, 430, 420, 330, 260 kWh, $235.00 at 5¢ a kWh.

How these numbers were worked out

Each bill is the kWh drawn at the plan's price, plus delivery on every kWh drawn, less the buyback credit. The homes and plans in the examples are made up for this page, and we show no real plan. The plan counts come from the listings Kilowhiz priced on Nov. 3, 2026. Our methodology has the full method.

Kilowhiz reads the power you draw and the power you send back from your meter, and credits each buyback plan on what you sent back.

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