What Is Net Metering and Why Does It Matter in Texas?

If you’re thinking about switching to solar in the Dallas-Fort Worth metroplex, you’ll probably come across the term "net metering." It sounds technical, but it’s actually pretty simple—and understanding it can help you make smarter choices about your energy use, costs, and long-term savings.

Let’s break it down.

What Is Net Metering?

Net metering is a billing arrangement that allows solar panel owners to receive credit for the excess electricity they generate and send back to the grid. Think of it as a give-and-take system: your panels produce power for your home, and any extra energy you don’t use gets shared with the utility grid.

In return, your utility provider gives you a credit on your electricity bill. That credit helps offset the electricity you pull from the grid when your solar panels aren’t producing—like at night or on cloudy days.

How Net Metering Works in Texas

Texas doesn’t have a statewide net metering policy. Instead, the rules depend on your electric provider. In the deregulated energy market of Texas, especially in the DFW area, some providers offer full retail rate credits for extra solar energy, while others offer lower buyback rates.

Providers like Green Mountain Energy, Reliant, and TXU Energy may offer solar buyback plans in Dallas, Fort Worth, Arlington, and surrounding cities. That’s why it’s important to compare plans before installing a solar system.

Some local municipal utilities, like Garland Power & Light or Denton Municipal Electric, have their own net metering rules. Be sure to check with your city or utility before signing any contracts.

Why Net Metering Matters

1. Maximizes Your Solar ROI

When you get credited for unused electricity, your overall return on investment improves. Over time, this helps reduce your payback period and maximizes long-term savings.

2. Reduces Monthly Energy Bills

In cities like Plano, Irving, and Grand Prairie, net metering helps homeowners shave hundreds off their electric bills each year—especially during summer when solar production is highest.

3. Supports Energy Independence

Net metering reduces your reliance on utility companies. You generate your own clean energy and use credits to cover what you can’t produce. It’s a win-win.

4. Encourages Clean Energy Adoption

The more homeowners in Texas take advantage of net metering, the more demand grows for clean energy infrastructure. That helps the environment and builds local energy resilience.

Key Considerations Before Choosing a Net Metering Plan

• Review the Buyback Rate: Full retail rates are ideal. Anything less means slower savings.

• Know Your Energy Needs: Oversizing your system could lead to wasted credits. A well-designed system should match your usage.

• Check for Contract Terms: Some solar buyback plans require you to stay with the same provider for a set period.

• Understand Annual True-Ups: Some plans reset unused credits yearly. Others roll them over. Know the rules.

• Ask About Smart Meters: These are required to track both consumption and production accurately.

Is Net Metering Available for Everyone in DFW?

In most deregulated parts of North Texas, yes. But availability and rates vary. Here’s what you should do:

• Contact your retail electricity provider (REP) and ask about solar buyback plans.

• Check city-specific programs in places like Richardson, Flower Mound, or Frisco.

• Work with a local solar installer familiar with net metering programs in your area.

Final Thoughts

Net metering is one of the best tools for making solar energy affordable and efficient in the Dallas-Fort Worth area. Even though Texas doesn’t mandate it across the board, many utilities and REPs offer competitive programs that help homeowners take control of their energy use and monthly bills.

Before installing solar, make sure you understand your utility’s policy, compare rates, and ask your installer how your system will connect to the grid. With the right plan in place, you can take full advantage of Texas sunshine and put your rooftop to work.