Is Net Metering a Must in Texas?

[TJ21CT]

First post here, don't grill me too bad.

We have an install date of the 29th and my most recent call with Tesla was to confirm I had a Net Metering plan. Currently I am paying 9 cents per kWh and Tesla's recommended provider MP2 is at 11.7 cents per kWh. I don't think my system will overproduce any, 8.16 kW solar and 3 powerwalls, my home is 3900 sq ft and my most recent usage had been 3866 kWh. Do I have to have Net Metering? I've been told both yes and no from Tesla. Is there a better option in Texas, specifically the Houston area?

 

[holeydonut]

First post here, don't grill me too bad.

We have an install date of the 29th and my most recent call with Tesla was to confirm I had a Net Metering plan. Currently I am paying 9 cents per kWh and Tesla's recommended provider MP2 is at 11.7 cents per kWh. I don't think my system will overproduce any, 8.16 kW solar and 3 powerwalls, my home is 3900 sq ft and my most recent usage had been 3866 kWh. Do I have to have Net Metering? I've been told both yes and no from Tesla. Is there a better option in Texas, specifically the Houston area?

I'm in California, so take this as guidance but not a real recommendation.

Texas doesn't have a formal NEM policy so technically you could get PTO without a formal arrangement with your energy provider. BUT, I think you should try to get net metering somehow to get the true benefit of solar.

For example, let's pretend today your solar generates 50 kWh between 8am and 6pm. But during that time, your house only uses 20 kWh. If you have a net metering agreement, then you will bank the 30kWh of unused energy. Then at night, you will withdraw from that bank so you are effectively using our own energy on paper.

We know, in reality, the electrons of your solar production were just used up by your neighbors. And when you take power at 11pm you're just using energy from coal, natural gas, wind, etc.

Anyway, my point is if you have no net metering, it just means you got to use the 20 kWh during sun-up, but you didn't bank anything for your excess. That is why net metering is so important to solar customers. If you had the dollars, you could install some big azzz batteries to bank your own power. But that's not a very efficient use of your money in Texas.

Batteries make more sense for people in California since the daytime bank on certain energy plans is only $0.18 per kWh. So the Power Company gives $0.18 for each kWh sent to them. But then at 7pm, the charge balloons to $0.48 per kWh when the homeowner takes energy from the PoCo.

 

[MCNE]

First post here, don't grill me too bad.

We have an install date of the 29th and my most recent call with Tesla was to confirm I had a Net Metering plan. Currently I am paying 9 cents per kWh and Tesla's recommended provider MP2 is at 11.7 cents per kWh. I don't think my system will overproduce any, 8.16 kW solar and 3 powerwalls, my home is 3900 sq ft and my most recent usage had been 3866 kWh. Do I have to have Net Metering? I've been told both yes and no from Tesla. Is there a better option in Texas, specifically the Houston area?

Welcome, I’m not in Houston but I am in Texas and yes Net metering is a must have in my opinion. We use a lot of energy, about 20-30% more than we produce. Problem is we need some place to store the solar because of when it’s generated. We can’t consume it all real-time. The net metering plan we have also allowed me to just scrap the order for powerwalls.

 

[arnolddeleon]

First post here, don't grill me too bad.

We have an install date of the 29th and my most recent call with Tesla was to confirm I had a Net Metering plan. Currently I am paying 9 cents per kWh and Tesla's recommended provider MP2 is at 11.7 cents per kWh. I don't think my system will overproduce any, 8.16 kW solar and 3 powerwalls, my home is 3900 sq ft and my most recent usage had been 3866 kWh. Do I have to have Net Metering? I've been told both yes and no from Tesla. Is there a better option in Texas, specifically the Houston area?

Also in California so my advice this theoretical as well. Given 8.16 kW of solar and *3* Powerwalls I think you will be fine without net metering because you have enough batteries that you can self-consume all the solar that you will produce. This assumes that you "willing" to use the batteries for that purpose. There is 10% roundtrip loss but that looks to be roughly the same as the difference between your current rate of 9 cents the 11.7 cents rates that you will switch to. You might even be slightly ahead.

I'm assuming 3866 kWh a monthly usage? My standard question is "what are you goals with the solar and batteries?"

 

[Redhill_qik]

The net metering plan we have also allowed me to just scrap the order for powerwalls.

Which helps with your ROI, but in the next power outage without the PWs you will be in the dark along with your neighbors.

 

[MCNE]

Which helps with your ROI, but in the next power outage without the PWs you will be in the dark along with your neighbors.

For whatever the reason I don’t loose power in Texas so that’s not a worry. Even my generator has never been used. We don’t have enough power issues to justify the cost of a Powerwall in Texas where I’m located which is a good thing.

 

[holeydonut]

Also in California so my advice this theoretical as well. Given 8.16 kW of solar and *3* Powerwalls I think you will be fine without net metering because you have enough batteries that you can self-consume all the solar that you will produce. This assumes that you "willing" to use the batteries for that purpose. There is 10% roundtrip loss but that looks to be roughly the same as the difference between your current rate of 9 cents the 11.7 cents rates that you will switch to. You might even be slightly ahead.

I'm assuming 3866 kWh a monthly usage? My standard question is "what are you goals with the solar and batteries?"

Oh… I think through this lens...

It may help the OP to know that my 6.7 kWp AC (7.9 kWp DC) system also has 3x Powerwalls. But my system is sized to 105% of my annual consumption, so I expect my kWh to net to zero on a full-year basis.

But looking at daily generation/usage cycles... my solar production maxes out the 3 Powerwalls all the time. I think every day since May, my daily production minus daytime usage has filled up the PWs to the extent I was exporting to the grid at some point. It would be unfortunate if OP loses on that export without a NEM agreement. I realize East Bay NorCal is in a forever-drought, so this is kind of abnormal. But I don't think my system is generating too much different than OP's system.

As much as I want to be in "self powered" mode to be absolutely grid isolated, the only way I could pull that off is with like 5x Powerwalls or something. I think OP should get a NEM agreement. As was pointed out, of the OP's system is small, and he will be a significant net consumer, maybe he'll want to stay on the cheaper energy plan. But only the OP will be able to do the math and come up with what makes total sense.

 

[jboy210]

For whatever the reason I don’t loose power in Texas so that’s not a worry. Even my generator has never been used. We don’t have enough power issues to justify the cost of a Powerwall in Texas where I’m located which is a good thing.

Where in Texas? Our relative's house in Austin (Leander) lost power for 3 days this winter. One stretch was 18 hours. Luckily no burst pipes, unlike the next-door neighbor.

 

[MCNE]

Where in Texas? Our relative's house in Austin (Leander) lost power for 3 days this winter. One stretch was 18 hours. Luckily no burst pipes, unlike the next-door neighbor.

SA. No water issues either for us through that storm. I know many people in the state had problems for a couple of days or so.

 

[electric miles]

SA. No water issues either for us through that storm. I know many people in the state had problems for a couple of days or so.

Power outages were pretty common for the 13 years I lived in SA. Maybe CPS has upped their game since then but it's still all under the ERCOT grid and the entire grid was minutes away from a complete shutdown last February. Hope your luck continues, though.

 

[MCNE]

Power outages were pretty common for the 13 years I lived in SA. Maybe CPS has upped their game since then but it's still all under the ERCOT grid and the entire grid was minutes away from a complete shutdown last February. Hope your luck continues, though.

I'm happy to say its not luck the 10 plus yrs I've lived in Texas. I haven't had a power outage here in a while and when I did it was like 10 min or less. Might be the areas I've lived in but certainly not an issue in SA worth buying 21k worth of Powerwall's that I'm certain of.

 

[h2ofun]

I'm happy to say its not luck the 10 plus yrs I've lived in Texas. I haven't had a power outage here in a while and when I did it was like 10 min or less. Might be the areas I've lived in but certainly not an issue in SA worth buying 21k worth of Powerwall's that I'm certain of.

But you cannot be cool without powerwalls

 

[holeydonut]

But you cannot be cool without powerwalls

And don't forget the Powerwalls look sweet next to the Tesla Gen 3 HPWC.

 

[MCNE]

But you cannot be cool without powerwalls

, and broke.

 

[s0schen]

First post here, don't grill me too bad.

We have an install date of the 29th and my most recent call with Tesla was to confirm I had a Net Metering plan. Currently I am paying 9 cents per kWh and Tesla's recommended provider MP2 is at 11.7 cents per kWh. I don't think my system will overproduce any, 8.16 kW solar and 3 powerwalls, my home is 3900 sq ft and my most recent usage had been 3866 kWh. Do I have to have Net Metering? I've been told both yes and no from Tesla. Is there a better option in Texas, specifically the Houston area?

Congrats on your solar install. I have one coming up shortly after you in Houston. I don't think everyone realizes what it takes to run 2 or 3 AC units constantly in our climate. At least during the summer I wouldn't think net metering is of any benefit.

Take a look at your smart meter data: https://www.smartmetertexas.com/home

You can download several years of meter data into Excel and run a simulation of when you expect solar to zero out grid use or export.

There is a thread on this forum describing arbitrage of Free Night's plans that actually ends up being the lowest cost if you can almost completely cover daytime and early evening use with solar + batteries. I'm just concerned about those companies changing their terms to exclude those with solar after the two year contract is up.

 

[arnolddeleon]

The more I think the more I lean against net metering in this case. The bottom line is @tj1772 is likely to be buying more than half their energy from grid. It doesn't make sense to pay a premium for that. I believe they will be able to self consume all their PV production. In the example they posted average daily usage was over 120 kWh. I suspect there is a lot of air conditioning load in that. That would happening during the day so no round trip through the batteries needed. In fact it wouldn't surprise if their batteries don't end up doing much on most days. "Best case" the average consumption is 5 kW per hour. The PV system will be putting that out only a few hours during the day.

I like what @s0schen suggested. There are potentially better alternatives but straight up net metering doesn't appear to be the best option.

 

[mswlogo]

Folks talk like all Net Metering plans are the same. Or “100%”.

What Net Metering plan? What are the details?

In MA (Eversource) is 80%. You basically lose 20% pushing to the grid. In NH Net Metering is 75%. A Friend in MA is on some town owned co-op and her Net Metering is useless (20%).

Note: Because of Net Metering loss, you should oversize your Solar System by that amount if you want to Net $0.00, yearly, to your energy company.

Batteries are NOT a substitute for Net Metering. Net Metering allows SEASONAL over production to get stored. Batteries don’t do that. They can only do store hours worth of over production. Net Metering can store 6 months
I produce 4x what I use in a day in summer.

Also keep in mind batteries are not 100% efficient. Figure 8% loss. They will degrade and may only last half the life of the Solar System.

Batteries work best in combination with Off Peak metering. Waste of money if you have a GOOD Net Metering plan.

Regarding OP at $0.09 KWh. You do realize Solar will take you an eternity for ROI. Figure Solar cost around $0.08 KWh. With power walls it’s probably even more.

 

[wjgjr]

Regarding OP at $0.09 KWh. You do realize Solar will take you an eternity for ROI. Figure Solar cost around $0.08 KWh. With power walls it’s probably even more.

You make a lot of really good points about looking into the details of NEM and really understanding how your plan works. I think (though also not a TX resident) this is particularly applicable in TX where the plans themselves may have different NEM rules.

The only thing I would note is that, with ideal configuration and Texas sun, and assuming the 25-year lifespan, the cost for solar from Tesla should be more like $0.05/kWh. Of course, you make a very important point that it is more with PWs (assuming you do not have other reasons for or benefits from PWs) and that is the only way you can get solar from Tesla currently.

 

[TJ21CT]

This is all great information and I am taking it all in. This is our forever home so the ROI isn't really a huge factor, it's more so the month to month cost of the system and energy that isn't covered by solar and/or batteries. The smaller panel selection was because the cost of more production would never really cover our consumption and the additional Powerwalls would provide whole home coverage in an outage. We do have two fairly large AC units in the home as well as a third PTAC unit. Only other large consumption items would be our electric ovens (switching out in the future) and maybe our Model 3? Not sure, just received the Model 3 a month ago. All is very new to us but we are all in now with Tesla.

Thanks s0schen - The smart meter data is great, had no idea about this. Here is my 24 month usage.

 

[bob_p]

We live in Texas with 44 350W solar panels and 4 PowerWalls.

After evaluating plans based on actual performance of our system for 6 months, we selected a FREE NIGHT plan (free electricity from 9PM to 9AM).

After one year on the plan, we only used 22% of our grid electricity during the 9AM to 9PM daytime period - the rest of the grid power from 9PM to 9AM was free (including charging two Tesla vehicles). During the daytime, most of the electricity came from our solar panels and PowerWalls. Even though the cost of electricity during the daytime hours was $.20/KWh - we saved $$$ compared to using a net metering plan (solar buyback) or a straight lower cost per KWh plan.

After the first year, we expected Direct Energy to refuse renewing the plan for us because they must be losing money on our usage - but, they offered to cut the electricity cost by 10% if we agreed to a two year plan - which we did immediately.

Before selecting a plan, strongly recommend downloading actual usage numbers from Smart Meter Texas - and perhaps signing up for a 6 month plan first to get experience with how the system performs - and then select a longer term plan that provides the greatest savings.