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Net Metering & Solar Buyback

NEM

A billing mechanism where solar system owners earn bill credits for excess electricity generated and exported back to the power grid.

Full Technical Definition

Net Metering (or Solar Buyback in Texas) allows residential rooftop solar owners to sell excess solar energy back to their Retail Electric Provider (REP). When solar panels produce more electricity than the home consumes, the bidirectional smart meter spins backward or records export credits.

Real-World Texas Example

During a sunny May afternoon, a 8 kW solar array generates 5 kWh more than the house uses. Under 1-to-1 solar buyback, the REP credits the homeowner's bill for 5 kWh at the full retail rate.

Standard Mathematical FormulaNet Monthly Bill = (Imported kWh × Import Rate) - (Exported kWh × Buyback Rate) + Base Fees
Authoritative Source: National Renewable Energy Laboratory (NREL)GEO Verified Evidence

Frequently Asked Questions

Do all Texas electricity providers offer solar buyback?

No. Because Texas has a deregulated market, REPs voluntarily offer solar buyback plans with varying terms (1-to-1 credit vs real-time wholesale pricing).