Texas

Texas does not have statewide net metering as the term is generally understood. However, retail electricity providers in Texas are permitted, but not required, to compensate customers for electricity produced by distributed renewable energy generation systems and exported to the electric grid. The program described below operates in a fashion similar to net metering and has similar customer benefits up to a certain point.

Green Mountain Energy Company, a retail provider of green electricity, offers a special Renewable Energy Buy-back program to Texas customers that produce renewable energy from distributed generation systems. The offer is only available to residential and business customers of Green Mountain Energy Company who purchase electricity under the company's Renewable Rewards product. Wind, solar, geothermal, biomass (and related technologies), hydroelectric, wave, and tidal energy systems are eligible to participate in this program. The program is generally intended to only support systems of 25 kilowatts (kW) or less.

Under the program, systems are installed on the customer's side of the meter and may serve to provide a portion of the customer's on-site electricity demand. Any excess energy produced by the customer’s system that is exported to the grid (NEG) is metered separately and the customer's account is credited (the following month) for the exported energy up to 500 kilowatt-hours (kWh) per month at the retail rate of the Renewable Rewards product. Energy export in excess of 500 kWh per month is credited at half of the retail rate of the Renewable Rewards product. The customer continues to pay the retail rate charged by Green Mountain under the Renewable Rewards program for all the electricity they consume from the grid during a month. Notably, customers retain title to any renewable energy credits (RECs) or other environmental attributes produced by the system.

The arrangement requires the customer to enter into an interconnection agreement with their electric distribution utility (not Green Mountain Energy). The customer must also work with their utility to install a meter capable of separately measuring the flow of electricity in both directions. The program website lists utility interconnection contacts for Oncor, CenterPoint, Texas-New Mexico Power, and American Electric Power.