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Market Requirements Overview-Texas

This article provides a clear, state-by-state breakdown of all requirements and links involved in the solar installation process, covering every requirement from M0 to M1 through M2 for Texas. It outlines the documentation, approvals, and compliance steps that installers and sales teams must follow to ensure each project meets state-specific regulations. Designed as a practical guide, it helps teams quickly understand what’s required in each state to keep projects compliant and moving efficiently.

State

Utilities

* = Lease Only

Min. Production Factor for Sales (Y1 Prod / DC kW)

Texas

We recognize that the state of Texas electric service territories and market conditions are unique and diverse. Please use the guidance below to determine if a customer is in 'deregulated ' or retail choice area and thus eligible for LightReach PPA, or if the customer is in one of our approved municipal or cooperative utilities and eligible for a LightReach Lease. Identifying the TDU and/or verifying a Retail Electric Provider is on the PUC of Texas list is a simple way to verify. On the PUC site, the utility company name can be looked up on the REP (Retail Energy Provider) Directory, and the TDU (Transmission Distribution Utility) Directory. The TDU Coverage Map is another resource to confirm the utility territory the customer resides in.

If the bill is administered by ANY of the retail electric provider ('REP') names and DBAs on the current PUCT list, then it is a retail choice area and eligible for a LightReach PPA:

Transmission Distribution Utilities (TDUs) with Retail Energy Providers (REPs)

  • Oncor Electric

  • CenterPoint Energy

  • American Electric Power Texas North (AEP - North)

  • American Electric Power Texas Central (AEP - Central)

  • Texas New Mexico Power Company (TNMP)

  • Lubbock Power & Light (municipal utility turned TDU in 2024)

Municipal, Cooperative, and IOUs (full-service)

  • Austin Energy*

  • Bartlett Electric Cooperative*

  • BlueBonnet Electric Cooperative*

  • CoServ Electric Cooperative*

  • College Station Utilities*

  • Denton Municipal Electric*

  • Entergy Texas*

  • Garland Power & Light*

  • Grayson Collin Electric Cooperative*

  • Guadalupe Valley Electric Cooperative*

  • Pedernales Electric Cooperative*

  • South Plains Electric Cooperative*

  • United Electric Cooperative*

800

A

Credit Requirements

  • TX: 680 FICO Credit Score

  • Soft credit inquiry (no impact on homeowner credit score)

  • No bankruptcies (7-Year Lookback)

  • Debt-to-Income (DTI) Not Factored

Does LR offer contracts in Spanish?

Yes, Spanish contracts have launched in Texas

Grid+ is the retail electricity plan that comes with LightReach Energy Plan in Texas. It pays homeowners for excess solar sent to the grid and adds monthly battery credits for an eligible battery. Grid+ is billed as a separate monthly electricity bill.

Required step for Texas retail choice homeowners: Every LightReach homeowner in a Texas retail choice area must either chose to enroll in Grid+ or opt out. The requirement appears in the web portal as Set up your grid plan, alongside ID, title, utility bill, and ACH setup.

*Click on link for more details

Energy Backup Homeowners: Enroll the same way through Set up your grid plan. Battery credits apply to the backup battery. Solar buyback credits apply only if the home has solar.

State(s)

Snow Loss (Only use if design platform does not have a total value)

Minimum System Loss without Shade Loss (Includes Snow Loss)

  • Texas

0%

9.1%

Lightreach has recommendations for the Battery settings based on a variety of factors; contract type, location, utility rate plan options and net metering policy, system design/configuration, etc.

Recommended battery operation mode varies by home. Some homes are not incentivized to use stored energy except during outages (e.g. 1:1 NEM with non-TOU markets) where Backup Power is desirable. California NEM 3 has customized TOU and AI Optimization modes and rate plans. While utilities with low export credits can optimize utility bill savings with Self-Consumption modes as in Texas.

*Click on link for more details

System Pre-Requisites by State:

State

Pre-Requisite

TX

Green-e (M-RETS Incentives)

  • N/A

M1 Documents: Submission Requirements:

State

Document 1

Document 2

TX

Utility Bill

  • Best practice to provide full copy when possible.

  • At minimum: Must show account number and address.

One new Milestone Requirement beginning November 1, 2026

1. Wet-Signed Consumer Disclosure Form (for customers 65+ only)

• Requirement: EPC uploads the wet-signed Consumer Disclosure Form for applicable customers.

• Applicability: New solar contracts generated for 65+ customers beginning November 1, 2026

• Please note, an e-signed version of the Consumer Disclosure Form will be included in all Texas Solar Contracts beginning September 1, 2026.

**Austin Energy M1

  1. A completed, accurate, and executed Solar Rebate Customer Agreement Form (CAF)

  2. A copy of the Rebate Confirmation Letter from Austin Energy

Requirements by State:

State

Document 1

Document 2

Texas

Interconnection Agreement

  • Must include utility countersignature

PTO

  • PTO letter must show customer address & date of PTO

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