The short answer

In AEP Texas areas you choose a retail electricity provider, and that provider decides what you're paid for solar power you send to the grid, if anything. AEP Texas's own guide says some providers have no buyback at all. AEP Texas handles the connection: it approves your system, reprograms your meter and sends your provider the surplus readings.

Every kWh you buy also carries AEP Texas's delivery charge, about 5.7 cents in the Central area and 5.6 cents in the North, so solar you use at home saves that too. In our estimate, a system sized to a $150 bill pays back in about 16 to 18 years around Corpus Christi and 15 to 17 around Abilene, at $3.00 to $3.50 a watt, depending on the plan. AEP Texas's SMART Source program also offers incentives for solar.

Who does what

AEP Texas
  • Reviews your interconnection application
  • Grants permission to operate
  • Reprograms your meter to count both directions
  • Sends your measured surplus to your provider
  • Restores power after outages
Your retail provider
  • Sends your monthly bill
  • Sets your energy price
  • Decides whether, and how much, it pays for exported solar
  • Passes through AEP Texas's delivery charges

AEP Texas delivery charges

AEP Texas CentralAEP Texas North
Customer charge$1.27 a month$1.27 a month
Metering charge$1.97 a month$1.97 a month
Per kWh delivered5.7¢5.6¢
Total delivery for 1,000 kWh$60.42$59.27

Residential delivery charges from the PUCT's AEP Texas rate report. Your provider adds its own energy charge and any base charge on top.

Delivery is a large share of the bill, and it's charged on each kWh you take from the grid. That's why a buyback credit, which usually covers only the energy part, is worth less than a kWh your house uses straight from the panels.

Your plan decides the buyback

Texas regulators say buyback rates are usually lower than the retail price you pay, and plans differ a lot. Some credit exported solar at close to their energy charge, some pay wholesale market prices, and some pay nothing. Since the plan can move yearly savings by hundreds of dollars, compare buyback terms before you choose a plan, not after you install. Our Texas buyback guide walks through the plan types.

What solar saves in AEP Texas areas

AEP Texas Central, Corpus Christi sun

Average monthly billSystem sizeYearly savings, wholesale buybackYearly savings, full energy-charge buybackTypical payback
$1004.1 kW$490$88016 to 18 years
$1506.2 kW$740$1,34016 to 18 years
$2008.3 kW$1,000$1,80016 to 18 years
$25010.4 kW$1,250$2,25016 to 18 years

AEP Texas North, Abilene sun

Average monthly billSystem sizeYearly savings, wholesale buybackYearly savings, full energy-charge buybackTypical payback
$1003.7 kW$490$89015 to 17 years
$1505.7 kW$740$1,35015 to 17 years
$2007.6 kW$1,000$1,81015 to 17 years
$2509.5 kW$1,250$2,26015 to 17 years

Our estimate, from the same model as our calculator: the 2024 average Texas retail plan price, AEP Texas delivery charges, panels sized to cover 85% of your use (savings columns cover 75% and 95%), NREL PVWatts sun. Typical payback uses a plan midway between the two buybacks, rising prices capped at 3% a year, 0.5% a year panel wear and $3.00 to $3.50 a watt, with no incentives; see our is solar worth it page. Using the North table? Run the calculator for AEP Texas North.

West Texas sun gives the North area a small edge: about 10% more output per panel in Abilene than in Corpus Christi.

A South Texas home with rooftop solar panels, palm trees and a wide sky near the coast

The SMART Source incentive

AEP Texas's energy efficiency plan for 2026, filed with the PUCT, includes the SMART Source program, which gives incentives for solar panels, battery storage and electric vehicle chargers installed on the customer's side of the meter. For homes, AEP Texas budgeted $670,941 in incentives for 2026, expecting about 1,024 kW of savings. Projects get a solar potential review before they apply and an inspection after installation, and installers in the program must attend mandatory training to stay in good standing. Like most utility programs it has a set budget for the year, so if a quote counts on a SMART Source incentive, check that it's shown on the quote.

A single-story South Texas home near Corpus Christi with a white metal roof covered in black solar panels, palm trees, a breezy coastal sky with scattered clouds

Connecting to AEP Texas

  1. Apply before you install. The installer submits an interconnection application to AEP Texas. AEP Texas says most applicants, 90% to 95%, are approved on the first review.
  2. Agreement and permission to operate. Within 30 days of the application, according to AEP Texas's timeline. You sign two documents with AEP Texas.
  3. Meter. AEP Texas reprograms your existing advanced meter, within 15 days of permission to operate. No second meter is needed.
  4. Surplus to your provider. Your updated load profile and measured surplus reach your provider 30 to 60 days after the meter is reprogrammed. Credits depend on your plan.

Changing panels, inverters or size after approval needs an updated application. You're responsible for the cost of any grid upgrades your system requires.

Storms, hail and outages

  • Outages. Federal data show AEP Texas Central customers averaged 3.8 hours without power in 2024 and 32 in 2021; North customers 1.8 and 19. Solar alone shuts off in an outage; see our battery guide.
  • Hail. The West Texas counties log far more hail than the coast: Taylor County had 118 reports from 2016 to 2025, Nueces County 13. See solar panels and hail in Texas.
  • The coast. On the Texas coast, a home policy might not cover wind and hail; the Texas Windstorm Insurance Association sells that coverage. Check that your panels are covered before hurricane season.
How it works

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Common questions

Does AEP Texas have net metering?

AEP Texas doesn't set solar buyback in its areas. It connects your system and measures what you send to the grid, and your retail electricity provider decides what to pay for it. AEP Texas's guide says some providers don't pay anything for exported power.

How do I get solar buyback with AEP Texas?

Choose a retail electricity plan that buys exported solar. Plans differ: some credit close to their energy charge, some pay wholesale prices, some pay nothing. Your provider gets your surplus readings from AEP Texas 30 to 60 days after your meter is reprogrammed.

What are AEP Texas's delivery charges?

For homes, a $1.27 customer charge, a $1.97 metering charge and about 5.7 cents per kWh in the Central area or 5.6 cents in the North, according to the PUCT's rate report: $60.42 and $59.27 for 1,000 kWh.

Does AEP Texas offer a solar rebate?

Its SMART Source program gives incentives for solar, batteries and EV chargers installed on the customer's side of the meter. AEP Texas budgeted $670,941 in residential incentives for 2026, in its energy efficiency plan filed with the PUCT.

How long does AEP Texas take to connect solar?

AEP Texas says it issues the interconnection agreement and permission to operate within 30 days of the application, reprograms the meter within 15 days after that, and sends surplus readings to your provider 30 to 60 days later.

Is solar worth it in AEP Texas areas?

In our estimate, a system sized to a $150 monthly bill pays back in about 16 to 18 years around Corpus Christi and 15 to 17 around Abilene at $3.00 to $3.50 a watt. The retail plan you choose can shorten or lengthen that by several years.

Retail plans and their buyback terms change often; check a plan's current terms before you sign. Estimates are ours, not AEP Texas's. Sources: AEP Texas: solar overview and interconnection timeline · AEP Texas: considering rooftop solar panels (PDF) · AEP Texas interconnection quick start guide (PDF) · PUCT: AEP Texas rate report · AEP Texas 2026 Energy Efficiency Plan and Report (PDF) · PUCT: thinking about solar panels for your home? · TDI homeowners insurance guide · EIA Form 861, 2024 · NOAA NCEI Storm Events Database · PVWatts v8, National Laboratory of the Rockies (formerly NREL). Reviewed October 2026.

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