- Oncor is a wires-only utility, not your energy seller. It is the largest transmission and distribution utility in Texas, delivering power to more than 13 million people across roughly 3.9 million metered points, including Dallas-Fort Worth (Sempra, Texas).
- Your buyback comes from your Retail Electric Provider, not Oncor. Oncor states it is the customer’s job to ask their retail electric provider about buy-back plans or credits for surplus solar (Oncor, Thinking About Solar).
- Texas has no statewide net metering. In the deregulated ERCOT market there is no mandated 1:1 credit, so export value depends entirely on the solar buyback plan you choose from a competitive provider.
- Texas residential power averages about 16.44 cents per kWh (EIA retail sales, May 2026), so a right-sized system that offsets your own usage is where most of the value is.
- Oncor runs interconnection and issues Permission to Operate. You cannot switch the system on until Oncor grants PTO and reprograms your meter to measure exports.
- The 30% federal homeowner credit (Section 25D) ended for expenditures after December 31, 2025 (IRS).
If Oncor is the company on your power pole in Texas, one fact changes everything about how rooftop solar pays you back: Oncor delivers your electricity, but it does not sell it to you and it does not set what your solar exports are worth. That is the nature of the deregulated ERCOT market. Oncor is the transmission and distribution utility, or TDU, that owns the poles and wires and runs the interconnection paperwork, while a separate Retail Electric Provider, the REP you picked, bills you and decides whether it offers a solar buyback plan. This page explains that split, walks through the Oncor interconnection process step by step, and shows how to size and shop a system so the numbers work in Dallas-Fort Worth and across Oncor’s territory.
Oncor Texas at a glance
Oncor handles the delivery side of your electric service. The retail side, including any credit for exported solar, sits with your competitive provider, which is the piece that trips up most first-time Texas solar shoppers.
| Detail | What to know |
|---|---|
| What Oncor is | A transmission and distribution utility (TDU): poles, wires, meters, and interconnection. Not a retail seller of electricity. |
| Size | The largest TDU in Texas, delivering to more than 13 million people over roughly 3.9 million metered points and 144,000-plus miles of line |
| Service area | Dallas-Fort Worth plus much of North, East, and West Central Texas (Dallas, Fort Worth, Arlington, Plano, Waco, Midland, Tyler, and more) |
| Who pays your buyback | Your Retail Electric Provider, through its own solar buyback plan. Oncor does not set or pay it. |
| Net metering | No statewide mandate in deregulated Texas. Credit terms vary plan to plan. |
| Before you switch on | Oncor must grant Permission to Operate and reprogram your meter to measure exports |
| Source | Oncor: renewables and solar |
According to MySolarFY’s analysis (August 2026), a typical 8 kW rooftop system in Dallas is modeled to produce about 12,300 kWh a year (NREL PVWatts, ZIP 75201), worth roughly $2,000 at Texas’s average residential rate of 16.44 cents per kWh, though in Oncor’s deregulated territory the real dollar value of that solar depends on the buyback plan your Retail Electric Provider offers, not on Oncor. Estimate your own roof with NREL’s free PVWatts calculator before you shop plans.
The Oncor difference: delivery is Oncor, the buyback is your REP
In deregulated Texas, two different companies touch your solar, and only one of them pays you for exports. Oncor owns the wires and charges a delivery fee that appears on your bill no matter which provider you use. Your Retail Electric Provider is the company you signed up with for a rate plan, and it is the one that decides whether it buys back the surplus your panels send to the grid. Oncor is explicit about this: it says customers must talk to their retail electric provider about buy-back plans or energy credits for surplus energy (Oncor). That means the single most important solar decision in Oncor territory is not the utility, it is which solar buyback plan you choose. Plans differ on the credit rate for exports, whether credits are 1:1 or lower, whether unused credits roll over, and the underlying energy rate you pay for the power you still import at night. Because there is no statewide net metering to fall back on, comparing these plans is the work. For the mechanics of how export credits function in general, see how net metering credits your solar exports.
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How to connect solar to Oncor in Texas
Oncor runs the interconnection process for rooftop solar in its territory, and the firm rule is the same as everywhere: you cannot energize the system until Oncor issues Permission to Operate. The general path is:
- Pick an installer. Your licensed installer manages the application. In Oncor’s process the installer sends you a tariff application to sign and submits your project through Oncor’s web-based Distributed Generation portal (Oncor for installers).
- Oncor reviews and studies the application. Oncor checks the technical design and equipment details and performs a study to confirm a safe, reliable interconnection.
- Interconnection agreement. Oncor prepares an interconnection agreement for all parties to sign.
- Install and inspect. The system is installed and passes the required local electrical and building inspection.
- Permission to Operate. Once the agreement is signed, Oncor issues a Permission to Operate (PTO) letter to you and your installer, then reprograms your meter to measure surplus generation sent to the grid. The system may not run before PTO.
Oncor says the timeline can range from a few days to several months depending on the project, so build in a buffer. A licensed installer normally handles the whole portal process for you. For the questions to ask before you sign, see the right questions to ask a solar installer.
Net metering and the buyback in Oncor territory
There is no statewide net metering in Texas, so your buyback is a shopping decision. In a regulated state, one utility credits your exports at a set rate. In deregulated ERCOT, Oncor delivers the power and your Retail Electric Provider decides what, if anything, it pays for exports through a solar buyback plan. That is both a catch and an opportunity. The catch is that a cheap-looking rate plan may offer little or no export credit, so oversized production can be wasted. The opportunity is that you can shop for a provider whose buyback plan fits how your household uses power. A few things to compare between plans:
| Compare between buyback plans | Why it matters |
|---|---|
| Export credit rate | Whether exports are credited near full retail or at a lower rate sets how much surplus is worth |
| Rollover of credits | Some plans roll unused credit forward; others zero it out each cycle |
| Import (energy) rate | You still buy power at night, so the plan’s base energy rate matters as much as its buyback |
| Term and fees | Contract length, monthly base charges, and early-termination fees change the real cost |
Because the buyback is not guaranteed and rarely beats using your own power, the smart move in Oncor territory is to size a system close to your annual usage rather than oversizing to chase a big export payout. To see how offsetting your own usage lowers the bill, read how solar lowers your electricity bill, and to weigh payback, see the financial case for whether solar panels are worth it. For local pricing, see our Texas solar cost breakdown.
What changed federally, and what it means for Oncor customers
The 30% federal homeowner credit ended December 31, 2025. That is the headline for Oncor customers. The Residential Clean Energy Credit (Section 25D) ended for expenditures made after that date under the One Big Beautiful Bill Act, so an Oncor customer who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). Your provider’s buyback plan and Texas’s strong solar resource were not affected by that change. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal credit still exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit; SEIA tax policy). For a leased system on an Oncor account you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025. Solar in Texas is never free, and any offer that says otherwise is a red flag.
How to choose a solar installer in Oncor territory
Dallas-Fort Worth is one of the deepest solar markets in the country, so you have many licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper Texas licensing and any required local electrical and building permits in your city.
- A clear workmanship and equipment warranty in writing.
- Real experience with Oncor’s Distributed Generation interconnection portal, so the application, agreement, and Permission to Operate go smoothly.
- Honest guidance on which Retail Electric Provider buyback plan fits your system, plus a written production estimate and a transparent quote. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. Building in Dallas, Fort Worth, Arlington, or Plano? See our local guides for solar in Dallas, Fort Worth, Arlington, and Plano, and Irving, and the statewide picture in our Texas solar guide.
Frequently asked questions
Does Oncor pay me for my excess solar?
No. Oncor is a transmission and distribution utility that delivers power and runs interconnection, but it does not buy your surplus solar. In deregulated Texas your buyback comes from your Retail Electric Provider through its solar buyback plan, and Oncor itself says customers must ask their retail provider about buy-back plans or credits for surplus energy. Compare providers on their export credit rate, rollover, and base energy rate, since there is no statewide net metering to fall back on.
Is there net metering in Oncor territory?
Not as a statewide mandate. Texas is a deregulated ERCOT market with no required 1:1 net metering, so what your exports are worth depends on the specific solar buyback plan you choose from a competitive Retail Electric Provider. Some plans credit exports near retail and roll credits forward; others credit less or zero out each cycle. Because the buyback is not guaranteed, sizing a system close to your own annual usage usually beats oversizing to chase export credits.
How do I connect solar to Oncor?
Your licensed installer submits your project through Oncor’s web-based Distributed Generation interconnection portal after you sign a tariff application. Oncor reviews the technical design, performs a study, and prepares an interconnection agreement for all parties to sign. After the system is installed and passes local inspection, Oncor issues a Permission to Operate letter and reprograms your meter to measure surplus generation. You cannot energize the system until Oncor grants Permission to Operate, and the timeline can range from a few days to several months.
What happened to the federal solar tax credit for Oncor customers?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so an Oncor customer who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Texas’s solar resource and your provider’s buyback plan were not affected. See our guide on what the federal solar tax credit change means in 2026.
Do I qualify for a solar buyback if I lease or sign a PPA on an Oncor account?
On a lease or PPA the company that owns the panels typically keeps the export credits and any incentives, while your benefit is a lower or fixed power price with no up-front cost. Lease and PPA terms usually run 20 to 25 years and may include an annual price escalator, so read the contract. If you want the buyback value and any credits in your own name, owning the system through cash or a loan is the path that captures them.
Reviewed by the MySolarFY team. Figures were verified against the linked Oncor, EIA, NREL, IRS, and SEIA sources as of August 2026; Retail Electric Provider buyback plans, provider rates, and interconnection timelines change over time, so confirm current terms with Oncor and your chosen provider before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the export credits and incentives often go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
