With solar panels, your Texas electricity bill has two main parts: energy you use from the grid (charged at your energy rate) and solar energy you send to the grid (credited at your solar credit rate). Your retail electricity provider manages both, while your utility company charges separate delivery fees.
Understanding the basics
Your solar panels produce energy throughout the day, but what determines your bill are the flows of energy to and from the grid. Sometimes you're buying electricity (when solar isn't producing enough), and sometimes you're selling electricity back (when panels produce more than you need).
What determines my solar bill?
Your bill is calculated using two key measurements:
Energy Used from Grid
Electricity you buy when solar isn't producing enough (nights, cloudy days, high usage periods).
Charged at your plan's energy rate (e.g., 12¢ per kWh)
Solar Sent to Grid
Excess solar power that flows to the grid when you produce more than you use.
Credited at your plan's solar credit rate (e.g., 12¢ per kWh for 1:1 plans)
Who charges what on my bill?
In Texas's deregulated electricity market, your bill has charges from two separate companies:
Your Retail Provider (e.g., Meter)
You choose your retail provider and can switch anytime. They set your energy rates and solar credits.
- Energy rate: What you pay for electricity used from the grid
- Solar credit rate: What you earn for solar sent to the grid
- Base fee: Monthly service charge from your provider
Your Utility Company (e.g., Oncor, CenterPoint)
Determined by your address—you can't choose. They own and maintain the power lines.
- Delivery charges: Fee per kWh for transmitting electricity to your home
- Base fee: Monthly charge for grid connection and meter reading
Example: How your bill is calculated
Monthly bill for a typical Texas solar home
Let's say your home consumed 1,800 kWh total and your solar produced 1,500 kWh. Here's how your bill breaks down:
Retail Provider Charges:
Utility Company Charges:
* Actual rates vary by plan and utility. This example shows why the solar credit rate matters—a higher rate would reduce your total bill.
Important concepts to understand
Solar credits don't offset everything
Your solar credits can only offset energy charges from your retail provider. They cannot offset base fees or utility delivery charges. This is why you'll always have some bill even with excellent solar production.
Your smart meter tracks everything
Modern smart meters track both directions of energy flow in real-time. This allows accurate billing for both what you use from the grid and what you send to the grid.
Rates matter more than you think
The difference between a 3¢ and 12¢ solar credit rate can mean hundreds of dollars annually. This is why choosing the right solar buyback plan is critical for maximizing your solar savings.
You can switch providers anytime
If you're unhappy with your current solar credit rates, you can switch to a different retail provider (like Meter) at any time. The switch happens within days with no service interruption.
Ready to maximize your solar savings?
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