The short answer
A PEC solar home uses its own power first. Every kWh it makes and uses on the spot avoids 10.91 cents of PEC charges. Whatever it doesn't use flows out to PEC and earns the Sustainable Power Credit, 7.19 cents per kWh since March 2026. That credit can only offset the base power charge on your bill, and anything left at the end of the calendar year expires. A system sized to your use gets close to full value from both; one built to over-produce does not. PEC offers no solar rebate.
How PEC bills a solar home
Solar homes on PEC keep a single meter with two registers: one counts the energy PEC delivers to you, the other counts the surplus your panels send back. PEC says the bill looks the same as any other residential member's, with one extra line for the Sustainable Power Credit.
What matters is which side of the meter a kWh lands on. PEC puts it plainly: "Your house will use all of the electricity your solar panels produce before using electricity from the power grid." Those kWh never get billed. The ones that leave the house earn a smaller credit:
PEC residential and DG interconnection rates since March 1, 2026, before the $32.50 monthly service availability charge, city fees and taxes.
The $32.50 service availability charge stays the same whatever your panels make, so even a large system leaves a bill every month.
The credit and its ceiling
PEC sets the Sustainable Power Credit from its Value of Solar Study, aiming to pay the market value of the power plus the costs PEC avoids. It changes once a year. It was 8.27 cents until March 1, 2026, when it dropped to 7.19 cents and PEC raised its base power charge from 6.19 to 6.59 cents.
Credits can only pay base power charges, which come to 6.59 cents for each kWh you still buy from PEC. Credit beyond that sits on the account until December 31, then expires.
For a system sized to less than your yearly use, the ceiling usually stays out of reach, because the home still buys plenty of power at night and through the summer. Here's how the year works out for a PEC home of average size:
One year of solar on an average PEC home
14,292 kWh a year (PEC's 2024 average, federal EIA data) and a system sized to 85% of it: 12,150 kWh of solar
Credit against its ceiling
$470 of credit against $570 of base power charges on the 8,700 kWh still bought from PEC. It all gets used.
Make the system bigger and the credit and its ceiling move toward each other. In our model of 200 Texas homes built from NREL data, a system sized to 95% of yearly use sends out, on average, just enough credit to match the base power charges left on the bill. Past that, extra panels make credit that expires. PEC's own guide says it directly: "Systems sized to over-produce have a longer payback period."
What a monthly PEC bill needs
Here's what our calculator works out for an average month at each bill size, with PEC's 2026 rates and credit and NREL's sun data for Austin:
| Average monthly bill | Yearly use (kWh) | System to cover 75% to 95% | Yearly savings |
|---|---|---|---|
| $100 | 7,400 | 3.9 to 5.0 kW | $500 to $620 |
| $150 | 12,900 | 6.8 to 8.7 kW | $880 to $1,070 |
| $200 | 18,400 | 9.8 to 12.4 kW | $1,250 to $1,530 |
| $250 | 23,900 | 12.7 to 16.0 kW | $1,620 to $1,990 |
| $300 | 29,400 | 15.6 to 19.7 kW | $2,000 to $2,450 |
Yearly use backs out the $32.50 service availability charge and divides by PEC's 10.91¢ in per-kWh charges. Systems produce 1,417 kWh per kW a year (PVWatts for a south-facing roof in Austin, less 5%). Solar used in the home saves 10.91¢; the share sent out earns 7.19¢, capped at the base power charge.
PEC homes averaged 1,191 kWh a month and $145.55 a month in 2024, by federal EIA data. PEC's average residential price rose from 10.36 cents per kWh in 2019 to 12.22 cents in 2024, about 3.4% a year, and both the service availability charge (March 2025) and the base power charge (March 2026) have gone up since.
Flat credit or time-of-use credit
Since March 2026, solar members can trade the flat credit for the Interconnect time-of-use rate. On it, the base power you buy and the surplus you send out are priced by the hour and season, at the same rates both ways:
Source: PEC DG interconnection rates, effective March 1, 2026. Mid-peak is 2 to 4 p.m. and 8 to 9 p.m. in summer and 5 to 9 p.m. the rest of the year (also 5 to 9 a.m. in winter).
The catch is timing. PEC notes that the sun peaks around noon, and on this rate noon is off-peak all year, so surplus sent out midday earns 4.35 cents instead of 7.19. Power you buy overnight gets cheaper, and power you buy from 4 to 8 p.m. in summer costs far more. Whether it comes out ahead depends on when your home sends power out and when it buys it; a battery that sends stored solar out in the evening tilts it your way. PEC's online account has a time-of-use calculator that runs your last 12 months of use through the rate. Try it before committing for a year.
Connecting to PEC
PEC requires approval before installation, and the system can't be switched on until PEC says so. For a home system under 50 kW, the steps are:
- ApplyOnline, in PowerClerk
Your installer files a one-line diagram and the system's total AC output. You sign the interconnection agreement and acknowledgement form yourself by DocuSign; installers aren't allowed to sign for you.
- Pay the fee$500 for systems under 50 kW
A one-time, non-refundable fee that shows up on your PEC bill, plus the actual cost of any grid upgrades the system needs. Adding to a system later costs $250.
- Approval to installBefore any work starts
PEC reviews the design and emails approval to you and your installer. If the system needs a study or grid upgrades, PEC's engineering team gets in touch.
- Install and city permitsCity sign-off first
All city permits and inspections need to be finished before PEC will inspect.
- PEC inspection10 to 15 business days
Requested through PowerClerk. You don't need to be home. A failed inspection can mean a $100 charge for each extra visit.
- Permission to operateThen the credit starts
PEC emails permission to operate and moves your account to the Sustainable Power Credit. The system can't be switched on before this.
Moving into a home that already has solar? PEC needs a new interconnection application and signed agreement from you, and the system has to stay off until PEC gives permission to operate.
Before you sign
PEC warns that it has seen scams and false claims from solar sellers. Its own words: "PEC has not partnered with any solar installers. We will never try to sell you a product or service, or partner with anyone who does." Anyone who says they're with PEC, or that PEC sent them, isn't.
Texas law backs you up. Since September 1, 2025, Occupations Code 1806.156 lets you cancel a home solar purchase or lease in writing, without penalty, until the end of the fifth business day after you sign. Since September 1, 2026, the seller also has to be registered with the state. Our Texas solar laws guide has the details.
Two PEC options don't involve your roof at all. Its Community Solar Program sells members power from solar farms in PEC's territory at 6.108 cents per kWh, for up to all of their average use, with no application fee; PEC says a home on the rooftop solar rate can't also join it. And its Renewable Energy Rider adds 43 cents per 1,000 kWh for power from renewable sources.
Your estimate in three steps
- Enter your billYour ZIP code, your utility and last month's bill.
- See your estimateA yearly savings range based on your utility's rates and the sun where you live.
- 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.
Common questions
Does PEC have net metering?
Not one-for-one. Solar your home uses as it's made never gets billed, which saves about 10.91 cents per kWh in PEC charges. Power you send back earns PEC's Sustainable Power Credit, 7.19 cents per kWh since March 2026, which can only offset the base power charge. Unused credit expires at the end of each calendar year.
What is PEC's Sustainable Power Credit in 2026?
7.1921 cents per kWh sent to PEC, since March 1, 2026. It was 8.2666 cents before. PEC updates it every year based on its Value of Solar Study, and applies it toward the base power charge only.
Does PEC offer a solar rebate?
No. PEC's solar and rate pages list no rebate for home solar, and a search of its website for rebates turned up nothing in October 2026. Texas does exempt the value solar adds to a home from property tax.
How much does PEC charge to connect solar?
A one-time, non-refundable $500 application fee for systems under 50 kW, posted to your PEC bill, plus the actual cost of any grid upgrades the system needs. Expanding a system that stays under 50 kW costs $250. A failed final inspection can add a $100 charge for each extra visit.
Should I switch to PEC's time-of-use solar credit?
It depends on timing. On the Interconnect time-of-use rate, surplus earns 4.35 cents off-peak, which covers midday all year, and up to 16.18 cents from 4 to 8 p.m. in summer, and the power you buy is priced the same way. Homes that send power out in the evening, for example from a battery, gain the most. It takes a 12-month commitment, and PEC's online account has a calculator that runs your past year of use through the rate.
I bought a house with solar in PEC territory. What do I do?
Apply to PEC for interconnection of existing distributed generation and sign the agreement. PEC says the system has to stay off until the process is complete and it gives you permission to operate.
Related guides
- Texas solar buyback plans and net metering
- Solar for Austin Energy customers
- Solar for CPS Energy customers
- Texas solar incentives in 2026
- Solar for CoServ members
- Is solar worth it in Texas?
PEC resets the Sustainable Power Credit every year and can change its rates. Check PEC's current DG interconnection rates before relying on a figure. Sources: PEC: DG interconnection rates · PEC: residential rates · PEC: updates to rates effective March 1, 2026 · PEC: solar and distributed generation · PEC: interconnection process · PEC: guide to decide · PEC: renewable options · PEC: the cooperative difference · Occupations Code chapter 1806 · EIA Form 861 · PVWatts v8, National Laboratory of the Rockies (formerly NREL). Reviewed October 2026.
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