Among Texas’ five major utilities, Oncor Electric Delivery is the largest transmission and distribution provider. While Oncor does not sell electricity directly, it does offer solar incentives to make the transition to solar more affordable.
This guide explores whether installing solar with Oncor is a wise investment. We’ll also cover oncor solar incentives, rebate programs, and net metering options to help you make an informed decision.
Oncor Electric Delivery in Texas: Service Areas and REPs
Oncor provides electricity transmission services across 98 counties in Central and West Texas, including major cities like Dallas and Fort Worth. While Oncor manages grid infrastructure, including power lines and poles, it does not sell electricity. Instead, homeowners must choose from various REPs offering different rate plans and solar buyback options.
When selecting a REP, it’s important to compare plans that include transmission and distribution utility (TDU) fees, which go to Oncor, while electricity payments are made to the chosen REP. If you plan to install solar, make sure your REP supports excess energy buyback through a net metering plan.
Does Oncor Offer Solar Incentives?
Yes, Oncor provides financial incentives for homeowners installing solar panels with battery storage. To qualify for the oncor solar rebate, your system must:
- Include a solar battery storage component
- Have a system size between 3 kW and 15 kW
- Meet specific tilt angle and directional requirements (north-facing systems are ineligible)
Unlike fixed-rate incentive programs, oncor solar incentives vary based on factors such as:
- System orientation and tilt
- Solar panel brand and efficiency
- Home location
Since incentive calculations can be complex, your solar installer will determine your eligibility and apply the rebate as a discount on your installation costs.
Savings with Oncor’s Solar Incentives
For example, if you install a 7.2 kW solar system with Q Cell 360-watt panels in Dallas, you may qualify for a $4,402 incentive if your system meets Oncor’s eligibility requirements.
- Initial System Cost: $29,800
- Oncor Incentive: -$4,402
- Post-Incentive Cost: $25,400
- Federal Tax Credit (30%): -$7,620
- Final Cost: $17,780
Oncor’s Solar Interconnection Process
Your installer will manage the necessary paperwork and approvals for Oncor’s interconnection process, which involves:
- Submitting an Application: Your installer will file an oncor new service application, which Oncor reviews to ensure grid compatibility.
- Interconnection Agreement: Once approved, Oncor provides an agreement that must be signed by you and your installer.
- Permission to Operate (PTO): After final inspections, Oncor activates your system and configures your meter to track energy production and grid export.
The entire process can take several weeks to a few months, depending on city permitting and utility approvals.
Should You Take Advantage of Oncor’s Solar Incentives?
If you’re considering installing solar with battery storage, Oncor’s incentives can significantly reduce your upfront costs. Backup batteries, such as the Tesla Powerwall, provide energy security during outages and help you maximize your savings by reducing reliance on the grid.
However, choosing the right REP with a competitive oncor solar buyback plan is just as important. Without a suitable buyback plan, your excess solar power may not yield the best financial return.
Is Oncor Solar Right for You?
Installing solar panels with Oncor Electric Delivery can be a great way to cut electricity costs and enhance energy independence. However, selecting the right REP and understanding the oncor solar reviews are key to optimizing your investment.
Looking for a reliable solar installer in Texas? SolarSME specializes in Oncor solar installations and streamlines the entire process for you. Schedule a FREE consultation today and start saving with solar!