Going Solar With Oncor Electric Delivery In Texas: Is It Worth It?
The solar trend is booming in the U.S. as people are switching to solar energy as a solution to get rid of high energy bills and power outages. Like other states, homeowners are rapidly going solar in Texas to maximize savings. However, it may be challenging for them to identify the best solar options or choose a trusted solar company for the installation process. Moreover, as being in a deregulated market, Texans not only have to find a solar installer but also need to look for the best solar buyback plans from a Retail Electric Provider. They need to figure out the utility requirements and buyback rates as they vary among utilities.
Oncor Electric is the largest transmission and distribution utility among the 5 utilities in Texas. It provides its customers with solar incentives to make their solar journey easy.
In this article, we will explain whether going solar with Oncor is worth it. Also, you will learn about Oncor’s solar rebate program, net metering, and buyback plans to help you decide about your solar investment.
What Areas Of Texas Does Oncor Electric Delivery Service?
Oncor Energy works in 98 counties across central and West Texas including Dallas and Fort Worth. Keep in mind that Oncor Electric is a transmission and distribution utility. It doesn’t sell electricity directly. Instead, you must choose a Retail Electric Provider (REP) to purchase power. Furthermore, in addition to providing electricity to residences and businesses, Oncor is responsible for maintaining the grid infrastructure, including power lines and poles.
Moreover, when choosing a REP, you compare electric rate plans in your area and pick the best one for you. These plans include transmission and distribution utility (TDU) fees that are paid to Oncor and the actual payments go to your REP.
What REPs Options Are Available In Oncor Electric Delivery's Territory?
Texas homeowners pick their REP based on electric rate plans and solar buyback options. Some of the REPs offering solar plans are listed below:
As a solar customer, you want to make sure the REP you choose offers a solar buyback rate. Reliant, TXU Energy, and Rhythm all purchase excess solar electric power, but you’ll need to meet the specific conditions of each plan.
Does Oncor Electric Delivery Offer Any Solar Incentives?
For homeowners in its service area, Oncor offers a solar incentive. Your system must have a solar battery installed and the system size should be 3 kW-15 kW to be eligible for Oncor incentive. Depending on where your house is located, there are different tilt angle limitations and the north facing systems are not eligible.
Moreover, Oncor does not provide a fixed incentive rate for all solar systems, compared to the majority of solar incentive programs. Rather, various factors determine the incentive’s value, such as:
System tilt
Direction of the system
Number of panels
Solar panel’s brand
Home location
Additionally, your solar installer will assess how much the incentive your system is eligible for. The solar installer receives the incentive from Oncor and applies it as a discount on installation costs. Hence, it is vital to choose a trusted local solar installer.
How Much Can You Save With Oncor's Solar Incentive On Installation Costs?
Assume you installed a 7.2 kW solar panel system consisting of 360-watt Q cell panels in Dallas. Oncor is offering you a $4,402 incentive if the system is a south-facing roof plane with an average roof pitch and normal shading.
System Cost: $29,800
Oncor Incentive: $4,402
Cost After Incentive: $25,400
Federal Tax Credit (30%): $7,620
Final Cost: $17,780
What Is Oncor Electric Delivery's Solar Interconnection Process?
Installing solar requires some paperwork but the good news is that your solar installer takes care of all the procedures. It may take some days or a few months depending on solar permitting and inspections from the city. The Oncor interconnection process includes:
Application Submission: Your installer will start working on your paperwork as soon as you hire them, which includes submitting a tariff application to Oncor. The installer handles the submission, but you will need to sign the application. Following submission, Oncor will examine the proposal and research to make sure the system can be securely connected to the grid. These reviews usually take a few days to two weeks to finish, while Oncor does not specify how long this process can take.
Interconnection Agreement: After the grid study and application are approved, Oncor drafts an interconnection agreement, which is forwarded to the installer, who then sends it to you for signature. After processing the installer in Oncor’s online installer site, Oncor signs off on it.
Permission to Operate (PTO): After all parties have signed the interconnection agreement and Oncor has reviewed it, Oncor will authorize your system to function. At that point, Oncor will set up your electric meter to record the electricity generated by your solar system and send it to the grid, as well as any energy you use. It may take 30-60 days for surplus energy generation information to be sent to your REP.
Should You Use Oncor's Solar Incentive?
Oncor incentives offer a good opportunity for homeowners investing in Solar+Battery storage systems. A backup battery provides uninterrupted power even during outages. Also, as grid failures and long blackouts are happening in Texas, a solar system with battery storage like Tesla Powerwall ensures energy security and peace of mind. However, if you want to install a solar PV system, you may opt without incentive.
Is It Worth Going Solar With Oncor Electric Delivery?
Going solar is an excellent approach for Oncor energy Delivery customers to minimize their dependency on the utility and lower their average Texas energy bills. However, remember that choosing a REP is more important than being an Oncor customer. Solar panels won’t be a good investment if you don’t pick a REP that offers a solar buyback program.
Looking for a trusted local solar installer in Texas? We are here to assist you! SolarSME is an Oncor installation company that manages your installation and interconnection process seamlessly. Book a FREE appointment to start your solar journey.
