Texas Solar Buyback Bill Shock (Oncor & CenterPoint): The Hidden 5.3¢/kWh TDU Delivery Fee
Texas solar salespeople love pitching '1-to-1 Net Metering in Texas!'—only for Dallas (Oncor) and Houston (CenterPoint) homeowners to open a $165 July electric bill! Why? Because in deregulated Texas, Retail Electric Providers (REPs) only credit the Energy charge on exports while STILL charging you the 5.2¢–5.8¢/kWh Oncor/CenterPoint TDU Delivery Fee on every kWh you import at night—plus $20/month base fees and no cash-out rollovers!
Key Forensic Statement Takeaways
- ✓The 5.5¢/kWh TDU Delivery Fee Trap: Even on a Texas REP '1:1 Solar Buyback Plan' (where Energy Rate = 13¢ and Export Rate = 13¢), when you export 1,000 kWh at noon you get a $130 credit, and when you import 1,000 kWh at night to run your AC you get billed $130 Energy + **$55 Oncor/CenterPoint TDU Delivery Fee** + **$15 Monthly Base Charge** = **$70/month bill on net-zero usage**!
- ✓The 'Capped at Monthly Usage' Trap: Many Texas REPs (Reliant, TXU, Gexa, Green Mountain) cap your monthly solar export credit at your monthly import kWh—meaning you CANNOT bank huge March/April spring solar credits to offset July/August 105°F air conditioning bills!
- ✓The 'Free Nights + Solar Battery' Hack (Ambit / Direct Energy / Just Energy / Chariot): Instead of a weak solar buyback plan, thousands of Texas solar + battery owners enroll in a **Free Nights Plan (Free electricity from 9:00 PM to 7:00 AM including TDU fees!)**. They run the house on solar + battery from 7:00 AM to 9:00 PM, and at 9:01 PM they charge their LFP batteries, EVs, and blast the AC to 66°F all night for $0.00!
- ✓Tesla Electric / Octopus Energy ERCOT VPP: Alternatively, enroll your Powerwall or Enphase/FranklinWH battery in an ERCOT Real-Time Wholesale VPP that pays up to $3.00–$5.00/kWh during August grid emergencies!
Line-by-Line Utility Statement Decoder & Elimination Strategy
| Statement Line Item | What It Actually Means | Typical Cost / Rate | How to Slash or Zero It |
|---|---|---|---|
| Oncor / CenterPoint TDU Delivery Charges | Regulated utility pole-and-wire fee (~5.3¢/kWh + $4.23/mo) billed on every imported kWh | 1,500 Night kWh × $0.054 = $81/mo ($972/yr!) | Discharge an LFP battery at night so power never crosses the Oncor/CenterPoint meter! |
| REP Monthly Base Charge ($9.95 – $29.95/mo) | Mandatory monthly customer fee charged by solar buyback REPs | $120 – $360/yr | Compare Electricity Facts Labels (EFLs) for low base-fee plans or VPP credits |
| Wholesale Real-Time Market (RTW) Export Rate | Plans that pay real-time ERCOT wholesale price (~1.5¢–3.5¢/kWh at noon, up to $5/kWh in emergencies) | Averages ~$0.032/kWh unless using a battery! | Never export midday solar on an RTW plan—store it in a battery and export at 7:00 PM! |
4-Step Action Plan to Eliminate Next Year's True-Up Bill
Signing up for a Texas solar buyback plan that only pays ~3¢/kWh wholesale for exports while charging 18¢/kWh (Energy + TDU) for nighttime AC imports.
Read the **Electricity Facts Label (EFL)** before choosing a Texas REP: either pick a true roll-over credit plan, an ERCOT VPP plan (Tesla Electric / Octopus), or a **Free Nights (9 PM – 7 AM)** plan if you have 15–30 kWh of LFP batteries!
An EG4 18kPV / Sol-Ark 15K + 28.6kWh LFP battery stack ($11,500 hardware before 30% ITC) lets you run 100% off-grid from 7:00 AM to 9:00 PM and recharge for $0.00 overnight on a Free Nights plan!
Texas REP contracts last 12 to 36 months—set a calendar reminder 14 days before your contract expires so you aren't auto-rolled onto a 24¢/kWh variable holdover rate!
Optimization Wins
- +Deregulated ERCOT lets you switch Retail Electric Providers (REPs) in 48 hours whenever a better solar/battery plan launches
- +Combining Solar + 28kWh Battery + a 'Free Nights' plan can achieve a literal $0.00 monthly Texas electric bill!
- +Zero state cap on ERCOT wholesale VPP export payouts (up to $5,000/MWh during grid scarcity)
Tariff Traps to Avoid
- −Standard solar panels WITHOUT a battery in Oncor/CenterPoint territory now face 9–12 year paybacks due to TDU fees and wholesale export caps
Frequently Asked Questions
Why do I still pay $90 a month to Oncor or CenterPoint when my solar panels produced more power than I used?
Because Oncor (Dallas/Fort Worth) and CenterPoint (Houston) charge a ~5.3¢ to 5.8¢/kWh Transmission and Distribution Utility (TDU) delivery fee on every kWh of electricity your home pulls from the grid after sunset—and they do NOT give you a 5.5¢ TDU credit when you export solar power at noon! The only way to avoid the TDU fee is to store your daytime solar in a home battery and use it yourself at night.
How does the 'Texas Free Nights + Solar Battery' strategy work?
You sign up for a Texas REP plan that offers 100% free electricity between 9:00 PM and 7:00 AM ( compensating with a high daytime rate of ~26¢/kWh from 7:00 AM to 9:00 PM). Because your solar panels and 20–30 kWh LFP battery power your home 100% from 7:00 AM to 9:00 PM, you buy ZERO daytime power—and at 9:01 PM, your battery and EV recharge from the grid for $0.00!
Was Your True-Up Bill Caused by Under-Producing Solar Panels?
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