Most of Texas runs on a genuinely different system than the rest of the country — worth understanding before you assume your bill works like everyone else's.
Delivery and retail supply are split, by design
In most of Texas (the ERCOT grid region), a delivery utility like Oncor, CenterPoint Energy, or AEP Texas owns the poles and wires, but doesn't sell you electricity directly — you choose your own retail electricity provider (REP) for that. This is different from most of the country, where a single utility handles both.
Not all of Texas works this way
Areas served by municipal utilities (like Austin Energy or San Antonio's CPS Energy) or electric cooperatives generally aren't part of the deregulated retail choice system — those customers get both delivery and supply from a single provider, similar to most other states. El Paso Electric is also a notable exception, remaining a traditional vertically integrated utility outside ERCOT.
Comparing retail plans takes real attention
Retail electricity plans in Texas vary widely in structure — fixed rate, variable rate, time-of-use, and plans with usage-based bill credits that can make the effective rate very different from the advertised rate at different usage levels. Reading the actual "Electricity Facts Label" required by Texas regulation, not just an advertised low headline rate, is the only reliable way to compare plans.
What this means for solar
Net metering and buyback terms in deregulated Texas are typically set by your chosen retail provider, not the delivery utility — meaning your solar buyback rate depends on which retail plan you choose, adding another layer to compare beyond your regular electricity rate. Check the specific terms of any plan you're considering if you have or plan to install solar.
Frequently asked questions
Do I have to shop for an electricity provider in Texas?
If you're in a deregulated ERCOT area, yes — there's no default utility-supplied option; you must choose a retail electricity provider, though most areas have dozens of plans to choose from.
Does solar buyback work the same with every Texas retail provider?
No — buyback terms and rates vary significantly by retail provider and specific plan, so if solar buyback matters to you, compare that term specifically across providers rather than assuming a standard rate applies everywhere.