Solar + Electricity Supplier Combinations: Maximizing Net Metering Credits

Rooftop solar pairs well with deregulated electricity markets — but only if you pick the right supplier. The wrong combination wastes excess generation, undercredits exported kWh, and locks you out of the better TOU options that high-solar households should be running. This guide breaks down how net metering interacts with retail electricity choice in 2026, which supplier features actually matter for solar homes, and how to stack net metering credits against time-of-use plans for maximum value.

Net Metering Basics in Deregulated States

Net metering is the policy that lets a solar home export excess generation back to the grid and receive a credit. The credit value depends on the state — and on whether you’re shopping retail supply on top of it.

Three credit structures dominate the deregulated market:

1. Full retail net metering. Each exported kWh credits at the same rate you pay for imported kWh. Texas (where offered by participating REPs), parts of New York, and some Pennsylvania utilities operate this way.
2. Avoided-cost net metering. Exported kWh credits at the wholesale or “avoided cost” rate, typically 2–4¢. Most of Massachusetts after Solar Massachusetts Renewable Target (SMART) revisions and parts of New Jersey operate this way for newer interconnections.
3. Net billing / time-of-export pricing. Exported kWh credits at different rates depending on when generation occurs. Increasingly common in NJ, NY, and MD; mandatory for some commercial systems.

The dollar value of a solar system can vary 30–40% based on which structure you fall under, even with identical generation.

Supplier-Specific Buyback Programs in Texas

Texas is unique. The regulated utility doesn’t run net metering — individual retail electric providers (REPs) decide whether to credit solar exports, and at what rate. As of 2026, the strongest residential solar buyback options:

• Octopus Energy (formerly TXU’s solar offering): Full retail buyback up to system size, then market rate.
• Rhythm “Solar Buyback”: Full retail credit, paired with a slightly higher base supply rate.
• Chariot Energy “Pure Solar Buyback”: 100% renewable supply + full retail buyback.
• Green Mountain “Renewable Rewards”: Full retail credit with bill credit applied monthly.

Avoid REPs that advertise solar buyback at an “avoided cost” rate (typically 3–4¢/kWh in Texas) — you’ll receive about 1/4 of the value of full retail. Read the EFL carefully: “Solar Buyback Credit Rate” should be at or near the supply rate, not a separate lower number.

Solar + TOU: When the Combination Wins

TOU plans charge more during weekday afternoons — the exact hours when residential solar generates the most. If you’re exporting heavily during peak hours and your buyback rate matches the on-peak retail rate, the value of each exported kWh can be 2–3x what a flat-rate plan would credit.

The math gets interesting for solar + battery combinations:

• Generate during the day, charge the battery
• Discharge the battery during the on-peak evening window (when sun is going down but TOU rate is still high)
• Charge the battery overnight if it didn’t fill from solar (rare for properly-sized systems in summer)

This stack (“solar arbitrage”) can save an additional $300–700/year on top of the basic solar offset, but only on TOU plans with a clear on-peak / off-peak spread. Flat-rate plans don’t reward battery storage at all.

Net Metering vs. Net Billing — The Subtle Difference

Many newer policies call themselves “net metering” but are actually “net billing.” The difference matters:

• True net metering: Exports and imports are netted at the meter. If you generate 1,000 kWh and consume 800 kWh in a month, you’re billed for zero kWh and bank 200 kWh in credits.
• Net billing: Imports and exports are tracked separately, often at different rates. You’re billed for the 800 kWh imported at retail rate, and credited for the 1,000 kWh exported at a different (usually lower) rate.

Net billing nearly always reduces the value of a solar system, sometimes by 30–50%. Confirm your state’s structure before sizing a new system or signing a long-term retail supply contract.

State-by-State Solar + Supply Notes

Texas: Choose a REP with explicit “Solar Buyback” branding. Confirm the buyback rate on the EFL is within 1¢ of the supply rate. Beware of “free nights” plans paired with solar — they typically have very high daytime rates that don’t get credited at full value for exports.

Pennsylvania: Full retail net metering is in place for residential systems under 50 kW. You can shop competitive supply freely; the utility handles the netting and applies your retail rate (whether default or competitive) to both imports and exports.

New York: Phasing out traditional net metering for systems installed after specific dates. New installs operate under Value of Distributed Energy Resources (VDER) which credits at a calculated rate. Coordinate supply choice with your installer.

New Jersey: Net metering still available for residential under 25 kW. Competitive supply choice doesn’t affect the netting mechanism, but supply rate determines the value of each credit.

Illinois: Net metering for systems under 2 MW. Recent reforms (“net metering 2.0”) preserve full retail crediting through 2029 for residential systems.

Massachusetts: SMART program credits vary by location and system size. Some areas continue under net metering; newer systems often under the SMART tariff. The retail supplier you choose still affects the rate at which your remaining grid imports are billed.

Ohio: Net metering at retail rate for residential systems. AEP, Duke, and FirstEnergy each have slightly different program rules.

Connecticut, Maryland, Maine, New Hampshire, Rhode Island, DC: All maintain net metering of some form, with varying credit structures. Competitive supply choice generally doesn’t affect the netting mechanism but does affect the value of each credited kWh.

Sizing Your System for the Plan You’ll Actually Pick

Conventional wisdom: size solar to cover 100% of annual usage. Real-world: size to about 90% of annual usage in net metering states, and 70–80% in net billing states.

Why the difference? In net billing states, excess exports credit at a much lower rate than imports. Oversizing means you’re effectively selling kWh at 4¢ and buying back at 14¢. Better to undersize slightly and use the grid as a backup, especially in cold months when solar production drops.

In states that “true up” annually (net metering credits roll forward but reset once a year), undersize by a small margin so you don’t leave value on the table at the annual reset.

Common Misconceptions

“With solar I won’t have an electricity bill.” Most net-metered solar homes still have a monthly bill — base fees, delivery charges, and minimum customer charges typically total $15–$40/month regardless of net consumption. Some states allow these to be offset by excess credits; many don’t.

“Solar means I can ignore the supplier I’m signed up with.” The supplier’s rate determines the value of every kWh you import (and in net metering states, every kWh you export). A 1¢/kWh difference in supplier rate, over a typical 5,000 kWh/year imported, is $50/year — small money on a single bill but compounded over 25 years of solar production.

“Community solar is the same as rooftop solar.” Community solar subscribers receive bill credits from off-site solar production. The economics work differently — typically a fixed monthly subscription credit, often 5–15% below the retail rate. Competitive supply choice still applies and can be optimized separately.

Solar + EV: The Best Combination

If you have both solar and an EV, the optimal stack is:

1. TOU plan with strong daytime export credit and cheap overnight rates
2. Solar sized to cover ~70% of annual usage (including EV)
3. EV programmed to charge overnight (off-peak)
4. Battery storage if state TOU spread is 4x+ between on-peak and off-peak

Without a battery, you’re using the grid as your battery: export solar during the day at high prices, import overnight to charge the EV at low prices. The net cost approaches zero in summer and stays manageable in winter.

Frequently Asked Questions

Does net metering survive deregulation?
Yes. Net metering is set by state regulators (PUC) and applies to the regulated utility’s metering. Competitive supply choice operates on top of net metering — they don’t conflict.

Can I lose net metering eligibility by switching suppliers?
No. Net metering follows the meter and the property, not the supplier. Switching competitive suppliers doesn’t change your eligibility, though it does change the rate at which credited kWh are valued.

How long do net metering credits last?
Varies by state. Some allow indefinite rollover; most reset annually (any unused credit at year-end is typically forfeited or paid out at avoided cost). Check your state’s specific rules before sizing.

Should I size solar to “go off-grid”?
Going off-grid requires battery storage sized for multiple days of autonomy — typically $20,000–40,000 of batteries on top of solar. Grid-tied with net metering is usually 3–5x more cost-effective unless you have specific resilience requirements.

What happens to my solar buyback if my supplier goes out of business?
You revert to the utility’s default service. In most states, the default has either standard net metering at the regulated rate or no buyback at all. Have a fallback plan.

Is solar still worth it in 2026 with declining net metering?
Yes in most deregulated states, with a longer payback period than five years ago. Typical payback: 8–12 years on a $20,000 system. The 25C federal credit (30%) is still active through 2032.

Bottom Line

Pair rooftop solar with a retail supplier that offers full retail buyback (where you have a choice) and a flat or TOU rate that matches your generation pattern. Avoid suppliers that buy back at avoided cost — you’ll lose 60–75% of export value. Size the system to your actual usage and the state’s net metering rules. The right supplier + plan combination can add $300–800/year to a solar system’s lifetime value, often more than the cost of the panel upgrade you considered instead.