CPS Energy · Texas

How CPS Energy credits home solar

What happens to the solar power your home sends to the grid, the size limits, and the steps to connect, checked against CPS Energy's own tariffs and the state rules.

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The rules

What happens to the solar power you send to the grid

CPS Energy, owned by the City of San Antonio since 1942, provides electric and natural gas service to more than 996,000 electric customers in San Antonio and portions of seven adjoining counties.

CPS Energy Solar PV Program (net metering)

How CPS Energy credits exports

  • CPS Energy, the electric and natural gas utility owned by the City of San Antonio, credits home solar through its Solar PV Program using monthly net billing.
  • Its billing meter records the energy CPS Energy delivers to the home and the surplus solar energy the home sends back, and each month the surplus is subtracted from the energy delivered, so the home is billed for the net kilowatt hours.
  • When a month ends with more energy sent to CPS Energy than delivered, the difference is net excess generation, which CPS Energy credits at a separate per kilowatt hour rate that is lower than its residential energy charge, with one rate for June through September and another for October through May.
  • That Excess Generation credit is applied to the next month's bill, up to the total electric bill amount, and any remaining credit carries over to the following month.
  • Because CPS Energy has not opted into retail competition, excess energy from any source can be sold only back to CPS Energy, not to another individual.
  • CPS Energy is governed by its Board of Trustees, but rate adjustments must also go to San Antonio City Council.

Recent changes

CPS Energy's Distributed Generation Manual, ninth edition, is dated May 1, 2024, and a CPS Energy memo dated May 21, 2024 says it is being revised to add battery storage and other distributed resources. The residential electric rate posted on CPS Energy's rates page took effect February 1, 2024, after approval by the Board of Trustees on December 4, 2023 and San Antonio City Council on December 7, 2023.

Before you connect

Limits, and the steps to get connected

Limits and eligibility

  • Under CPS Energy's Distributed Generation Manual, a system owner who wants to deliver power for CPS Energy to buy needs a power purchase agreement, except for net metered systems of 25 kW AC or less that are expected to match the customer's use, which are covered by CPS Energy's tariffs under Rider 5.
  • Residential systems above 25 kW require engineered drawings, and CPS Energy says their review may take up to 30 business days.
  • For a net metered system, the Distributed Generation Manual requires the customer to also be the owner of the system, and batteries installed as part of a net metered system may not export power to the grid.
  • Contractors who install solar, batteries or generators in CPS Energy's territory must register with CPS Energy, which requires a Texas electrical contractor license and liability insurance.

How a home gets connected

  1. A contractor registered with CPS Energy submits the solar application packet on the homeowner's behalf, including a registration form, an interconnection application, electrical drawings, and a disclosure form and purchase contract signed by the customer.
  2. CPS Energy reviews the complete packet, which its process sheet says takes about 7 to 10 business days, then stamps its approval on the drawings and interconnection application, and installation should not begin until that approval and the required permits are in hand.
  3. The contractor obtains the electrical permit and inspection from the local city, and inside San Antonio the Development Services Department issues the solar photovoltaic permit through the BuildSA portal to a state licensed master electrician registered with the City, then notifies CPS Energy after a passed inspection.
  4. Once all permits pass, the contractor requests final commissioning, and CPS Energy asks for 5 to 10 business days to schedule its inspection and anti islanding test, then sets the PV meter and activates the system the same day it passes.
  5. The customer receives a permission to operate email within 24 to 48 hours of passed commissioning.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. What that means in 2026.

Where we work

Cities we cover in CPS Energy's area

Each city page adds who issues permits there, with links to the official sources.

State rules

Questions

Common questions about CPS Energy and solar

Does CPS Energy have net metering for home solar?

Yes. CPS Energy's manuals describe home systems as net metered, and its solar billing notice explains that the surplus solar energy a home sends to CPS Energy each month is subtracted from the energy CPS Energy delivers, so the home pays for the net amount. If a month ends with more energy sent out than delivered, the difference becomes an Excess Generation credit at a separate seasonal per kilowatt hour rate, applied to the next bill up to the total electric bill, with any remainder carried to the following month.

Does CPS Energy still offer rebates for home solar?

CPS Energy's Rooftop Solar Incentives page, checked on September 26, 2026, describes solar rebate funds for small businesses, schools and nonprofit organizations and says the general incentive applies to qualifying commercial projects only. The same page says CPS Energy guidelines and rebate levels are subject to change without notice.

How long does CPS Energy take to approve and turn on a home solar system?

CPS Energy's residential process sheet says review of a complete solar application packet takes about 7 to 10 business days, or up to 30 business days for systems above 25 kW that need engineered drawings. After city permits pass and the contractor requests final commissioning, CPS Energy asks for 5 to 10 business days to schedule it, sets the PV meter the same day the system passes, and emails permission to operate within 24 to 48 hours.

Is there still a federal tax credit for home solar?

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Tariffs and programs change, so confirm current terms with CPS Energy before you decide.

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