As the demand for sustainable energy solutions increases, Texas homeowners are increasingly turning to solar power as an effective and economical choice for their energy needs. In recent years, over 500,000 homes in Texas have installed solar systems to harness the sun’s energy.
This surge in solar adoption is largely due to the significant decrease in solar panel costs, which have fallen by more than 80% in the past decade, combined with Texas’ abundant sunlight—averaging about 204 sunny days per year.
Entergy Texas, Inc. (ETI) provides service to over 460,000 customers across 27 counties in southeast Texas and offers a solar buyback program that can help accelerate your return on investment (ROI) for your solar photovoltaic (PV) system. With installation costs at an all-time low and various incentives available, solar energy is more accessible than ever in Texas. Here’s what you need to know about going solar with Entergy Texas.
Does Entergy Have a Solar Program?
While Entergy Texas promotes renewable energy and energy efficiency, it currently does not have a specific solar program for residential customers. However, they do offer a distributed generation (net metering) program for eligible clients.
Distributed Generation (Net Metering) with Entergy
Under the distributed generation program from Entergy Texas, any solar power generated at your home is used to supply your household needs first. If your home generates more energy than it consumes, the excess energy is sent back to the grid, earning you credits on your bill. When your solar system isn’t producing power, you can still draw electricity from the grid as usual.
What Are the Rates for Entergy’s Energy Buyback Program?
Entergy Texas operates on an avoided cost model and does not provide a direct dollar-for-dollar payback for excess energy produced. Instead, you receive credits at a lower rate for the surplus power your system contributes to the utility grid. These credits are calculated based on the ‘avoided cost’ of the energy you export back.
If you still receive a bill from Entergy after installing solar panels, it indicates that you consumed electricity from the grid when your solar system wasn’t generating enough energy. You’ll be charged regular rates for this grid-supplied electricity, and the credits from your excess solar energy may not cover certain mandatory fees.
What Is Avoided Cost?
According to Entergy, “An avoided cost (also referred to as net metering) is the minimum amount an electric utility must pay an independent power producer under the PURPA regulations of 1978. This amount equals the costs the utility estimates it avoids by not producing that power itself.”
Who Qualifies for Entergy Texas Net Metering?
To participate in Entergy Texas’ distributed generation or net metering program, you must meet the following criteria:
- Be a residential or commercial customer within the Entergy Texas service area.
- Ensure the solar PV system complies with all safety and technical standards set by Entergy Texas.
- Have a certified professional perform the solar installation to guarantee that the system operates safely and efficiently.
- Have a bi-directional meter installed.
- Submit an application that includes details about your solar system’s specifications, intended installation date, and compliance with local codes and standards.
Interconnection for Net Metering
Once Entergy Texas approves your application, they will install a bi-directional meter. This meter will separately track the amount of electricity you purchase from the utility and the amount you supply back to the grid.
Homeowners will be billed for all energy (kWh) consumed from the utility while receiving credits for any energy supplied to the grid. These credits will be applied during billing cycles based on standard rates for purchases at Avoided Cost.
For 2024, the avoided cost buyback rates are as follows:
- 2024 Summer Rate: $0.028215 per kWh
- 2024 Winter Rate: $0.031135 per kWh
Is Going Solar with Entergy a Good Decision?
Absolutely! While the avoided cost buyback rates may not be as favorable as those from some other net metering programs, they still enable you to save on utility bills and achieve a quicker return on your solar investment. With net metering, you can continuously reduce your energy expenses by offsetting the power you consume with the energy generated by your system.
Even if the financial incentives are less generous compared to other utilities, the long-term advantages of lower energy costs, increased property values, and contributing to environmental sustainability make opting for solar with Entergy a sound choice.
Finding a Texas Solar Installer
The best solar companies in Texas understand regional permitting and program requirements, helping you maximize your clean energy investment.
Freedom Solar is dedicated to facilitating your transition to solar energy in Texas. We manage the entire process to ensure everything is done correctly. We’ve successfully helped thousands of customers access clean, reliable, and affordable solar energy.