The short answer

Magic Valley uses monthly net metering for systems of 50 kW or less. Each billing period, it subtracts the energy your system sends to the grid from the energy it delivers to you, and bills the difference at its residential rate, 9.187¢ a kWh. If your system sends out more than you used that month, the extra goes to the co-op at no charge: no buyback and no credit carried to the next month. The $28.25 customer charge applies every month either way, and Magic Valley offers no solar rebates.

Used less than you made?Billed $28.25The customer charge; the surplus is lost
Used more than you made?Billed the differenceAt the full 9.19¢ rate, plus the customer charge
RebatesNoneAnd the federal credit ended after 2025
A single-story stucco home with a red tile roof and rooftop solar panels in the Rio Grande Valley, tall palm trees and a citrus tree in the yard under a hazy blue sky

How a month nets out

Netting by the month is generous inside a month: a kWh your panels send out at noon cancels a kWh you buy at night, so all of it is worth the full rate. The catch is the month boundary. Magic Valley's own member form puts it plainly: it "does not buy back any excess power," it "will not credit forward any excess energy," and "any excess production will be lost without financial compensation."

Where surplus gets lost

For an average Texas home with a 9 kW system, the months where output beats use are Feb, Mar, Apr, May, Oct, Nov and Dec: mild weather means little air conditioning while the sun is still strong. Summer is the opposite; the AC uses everything the panels make and more.

Sizing for monthly netting

SystemkWh made a yearkWh given awayShare of output lost
6 kW9,399841%
8 kW12,5329377%
9 kW14,0991,69312%
10 kW15,6652,68917%

Same average Texas home and McAllen output as the chart, netted month by month. Your own lost share depends on your own monthly use.

The bigger the system, the more of the extra output lands in months where it's worthless. So in Magic Valley's area, look at your lowest-use months, usually spring and fall, before you choose a size. A system that roughly covers those months loses little; one sized to cover your whole year's use gives a growing share away. A battery doesn't change the monthly math, but it can shift daytime power to the evening within a month.

Savings and payback

Here's what our calculator works out for an average month at each bill size, with Magic Valley's residential rate and customer charge, monthly netting with surplus lost, and NREL's sun data for the McAllen area:

Average monthly billYearly use (kWh)System to cover 75% to 95%Yearly savingsPayback
$1009,3724.8 to 6.0 kW$617 to $72122 to 25 years
$15015,9038.1 to 10.3 kW$1,046 to $1,22422 to 25 years
$20022,43411.4 to 14.5 kW$1,476 to $1,72722 to 25 years
$25028,96514.8 to 18.7 kW$1,906 to $2,23022 to 25 years
$30035,49618.1 to 22.9 kW$2,336 to $2,73222 to 25 years

Payback assumes $3.00 to $3.50 a watt for a system covering 85% of use plus the $250 application fee, rates rising 1.7% a year (Magic Valley's recent pace) and panels losing 0.5% a year. No incentives.

Getting connected

  • Apply with the $250 fee. For systems under 50 kW, with a plan for the installation. Magic Valley may add engineering fees if a study is needed.
  • Allow up to 60 days for review. The co-op returns its interconnection analysis within 60 days of getting final plans; changes can restart the clock.
  • Onsite inspection first. Magic Valley has to inspect and approve the installation before the system can operate.
  • Its meters. The co-op installs and owns the metering: one meter that runs both ways, or two one-way meters netted monthly.
  • No extra insurance. Systems of 50 kW or smaller don't need additional liability insurance under the co-op's manual.
How it works

Your estimate in three steps

  1. Enter your billYour ZIP code, your utility and last month's bill.
  2. See your estimateA yearly savings range based on your utility's rates and the sun where you live.
  3. Choose what's nextAsk for a quote call if you want real pricing, or just keep the number.

See what solar could save you

It takes about a minute. You don't need a site visit, a commitment or a sales call to see your number.

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Common questions

Does Magic Valley Electric Cooperative have net metering?

Yes, monthly. For systems of 50 kW or less, it nets the energy your system sends to the grid against the energy it delivers each billing period and bills the difference at the retail rate.

Does Magic Valley buy back excess solar power?

No. Its member form says it does not buy back excess power and will not credit excess energy forward; production beyond a month's use is provided to the co-op without compensation.

What does Magic Valley charge solar members?

The same residential rate as other members, 9.187 cents per kWh plus a $28.25 customer charge that's billed every month, and a $250 application fee for systems under 50 kW.

Does Magic Valley offer solar rebates?

No. Its interconnection application says it does not provide any rebates or financial incentives for solar or wind systems.

What size solar system should I get with Magic Valley?

Look at your lowest-use months first. In our example for an average Texas home in McAllen, a 6 kW system loses about 1% of its output to month-end surplus and a 10 kW system about 17%.

Savings are our calculator's estimate, not Magic Valley's. Check the co-op's current manual and rates before you sign. Sources: Magic Valley Electric Cooperative: solar and wind systems · MVEC: residential DG interconnection application, 50 kW and under (PDF) · MVEC: distributed generation procedures and guidelines manual (PDF) · MVEC: residential rates · U.S. EIA: monthly sales by state · European Commission JRC: PVGIS. Reviewed October 2026.

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