Distributed Generation Customer Resources

The BTU Board and Bryan City Council recently approved changes to how customers with distributed generation systems less than 50 kilowatts (kW) will be compensated for excess energy their systems produce and export to the BTU electric grid. Utilize this page as a resource to find helpful information as the transition to this new compensation structure approaches.

Sign Your New Distributed Generation Agreement Online

In June 2026, Bryan Texas Utilities (BTU) communicated to distributed generation customers via mail and/or email that the Bryan City Council approved a revised electric rate ordinance. That ordinance changes how customers with distributed generation systems less than 50 kilowatts (kW) will be compensated for excess energy their systems produce and export to the BTU electric grid.

Per this ordinance, all electricity imported from the grid into a customer’s home or business, will be billed at the applicable retail electric rate. Separately, all excess electricity generated by a customer’s distributed generation system, and returned to the grid, will receive a bill credit based on the current Power Cost Recovery Charge (PCRC) component of your applicable BTU electric rate.

The Bryan City Council approved a transition period for this compensation change at its meeting on July 14, 2026. All existing distributed generation customers will be assigned a transition scheduled determined by the date of installation of their residential solar systems:

Distributed System Installation Year	Transition Period Following Effective Date of Ordinance
Installed during 2026	72 Months
Installed during 2025	60 Months
Installed during 2024	48 Months
Installed during 2023	36 Months
Installed during 2022	24 Months
Installed in 2021 or earlier	12 Months

Learn How Your Credit Will be Calculated

Find Answers to Frequently Asked Questions

Request a Breakdown of your Monthly Bill

How will I be compensated for excess generation under the new policy?

This graphic diagrams a house with solar panels and explains how solar energy is generated, used, and credited under BTU distributed generation agreements

When you sign a Distributed Generation Agreement with BTU, you are signing up to be credited for the excess solar power you produce and export back to the grid. You have the first right to use the power you generate, and unless you are storing your excess power in a battery, everything you don't use is measured by your meter as it is exported. You do not have to lift a finger!

The power you pull from the BTU grid when your solar system is not producing enough for your current needs (supplemental grid consumption) is billed at the full retail rate, which includes the power you are using and pass-through charges that cover BTU expenses related to getting power where it needs to be.

The power you export to the BTU grid when you are not using everything your are generating at a given time (excess grid production) is purchased from you at the current Power Cost Recovery (PCRC) rate. This rate is the annual average cost of the fuel BTU uses to generate electricity and the cost to purchase electricity from other sources. The PCRC rate is higher than what you would receive if you hypothetically exported your solar energy directly to the ERCOT wholesale market.

Below are examples of what your bill could look like under the new compensation system in different scenarios, using round numbers and the City of Bryan Residential Rates for simplicity. You can substitute your rate (e.g. rural or College Station) and actual consumption and export data to see real results for yourself, or reach out to solar@btutilities.com for assistance in doing so.

Scenario 1: Customer Exports More Than They Consume

Consumption/Export Amount	Rate of Charge or Credit	Amount of Charge or Credit
500 kW Imported (Supplemental BTU Grid Consumption)	Charged at $0.1097/kWh	Charged $54.85
600 kW Exported (Excess Production Given to BTU Grid)	Credited at $0.0376/kWh	Credited $22.56
Availability Charge		$11.00
YOUR TOTAL BILL (Electric Only):		$43.29

Scenario 2: Customer Exports Exactly What They Consume

Consumption/Export Amount	Rate of Charge or Credit	Amount of Charge or Credit
500 kW Imported (Supplemental BTU Grid Consumption)	Charged at $0.1097/kWh	Charged $54.85
500 kW Exported (Excess Production Given to BTU Grid)	Credited at $0.0376/kWh	Credited $18.80
Availability Charge		$11.00
YOUR TOTAL BILL (Electric Only):		$47.05

Scenario 3: Customer Exports Less Than They Consume

Consumption/Export Amount	Rate of Charge or Credit	Amount of Charge or Credit
500 kW Imported (Supplemental BTU Grid Consumption)	Charged at $0.1097/kWh	Charged $54.85
400 kW Exported (Excess Production Given to BTU Grid)	Credited at $0.0376/kWh	Credited $15.04
Availability Charge		$11.00
YOUR TOTAL BILL (Electric Only):		$50.81

NOTE: Your amount for credit will be lower than the solar generation reported by your solar software algorithm. This is because your BTU meter measures, and BTU credits, only what you export to the grid. The rest of the generation reported by the solar software was likely consumed within your home or property. Additionally, most solar software algorithms report with at least a 5% margin of error.

Frequently Asked Questions

Under the previous compensation arrangement, solar customers were credited at the full electric rate for excess power their solar panels generated. While this was a great deal for those customers, crediting solar customers in this way did more than just offset the value of the power generated under our rate structure. The retail rate also pays for power lines, substations, meters, billing systems, customer service, and the employees who keep the system running. Solar panels do not provide any of those services, but under the previous net metering agreement, solar customers were being credited for them anyway. Those costs did not disappear, they were shifted onto everyone else, forcing other customers to cover expenses solar customers were avoiding. As a community-owned utility, BTU has a responsibility to balance the interests of all ratepayers and ensure that costs are allocated as fairly as possible.

The BTU Board of Directors originally approved a recommendation to the Bryan City Council, who gave initial approval on May 5, 2026. At a special council meeting on June 26, 2026, the council heard from customers affected by the changes and directed BTU staff to take the thoughts of customers that spoke into account and return with a new proposal. BTU presented this new proposal that included a transition period for all solar customers at the July 14, 2026 council meeting, and the council approved the amended proposal.

Yes, these changes were discussed at multiple BTU Board meetings and at least three Bryan City Council meetings. All BTU Board and Bryan City Council meetings are open to the public and have time for comments from visitors. Agendas are posted beforehand in accordance with state law, and can be found at bryantx.gov/public-meetings/. BTU recognizes that we could have communicated these changes in a more effective way, and we apologize for any confusion brought about by those shortcomings.

From this point on, compensation for excess solar exports back to the grid will be in line with BTU’s Power Cost Recovery Charge (PCRC). BTU determines the rate associated with the PCRC, formerly known as the Power Supply Adjustment Charge, based on ERCOT settlement fees, fuel costs, and net purchased power costs. Net purchased power costs are based upon the prior year’s average cost of power from all sources: power supply contracts, ERCOT market purchases, and local generation at the Dansby and Atkins power plants. BTU reports an annual cost of power to the BTU Board of Directors, which recommends any necessary change in the PCRC to the Bryan City Council, who ultimately determines all BTU rates by ordinance.

The PCRC is a "pass-through" charge, meaning BTU only seeks to recover costs associated with power acquisition, not make a profit.

All changes to the rate ordinance must be approved by the Bryan City Council. The BTU Board of Directors analyzes the costs factored into the Power Cost Recovery Charge (PCRC) annually, and adjusts the PCRC as needed. All Bryan City Council and BTU Board of Director meetings are open to the public. The best way to stay up to date is by keeping up with the agendas for upcoming meetings at bryantx.gov/public-meetings/.

BTU uses a wide variety of mediums to communicate with our customers, including our website, social media, bill inserts, text alerts (if opted-in), Texas Co-op Power magazine, direct mail, and press releases to the local media. We are actively exploring expanding these efforts further into new mediums as well, and welcome any feedback or suggestions of relevant communication channels that we might be overlooking.

The length of your transition period is dependent on when you installed your system.

Distributed System Installation Year	Transition Period Following Effective Date of Ordinance
Installed during 2026	72 Months
Installed during 2025	60 Months
Installed during 2024	48 Months
Installed during 2023	36 Months
Installed during 2022	24 Months
Installed in 2021 or earlier	12 Months

We recognize that “original state” carries a broad interpretation, and will seek to apply common sense and good-faith arguments on a case-by-case basis. As a general rule, if you are only replacing failed mechanical components and not fundamentally altering your system, you would likely maintain eligibility. If entire portions of your system have neared the end of their usable life, forcing you to replace them with newer models, you would, in practicality, be undergoing a new installation and therefore need a new application packet and interconnection inspection. New installations will immediately be subject to the new compensation structure and will not have a transition period.

If you are considering a change to your solar system, please contact us at solar@btutilities.com to discuss them. They may require additional permits or a new application packet and interconnection inspection.

A distributed generation agreement (DGA) is an agreement between electric power customers and utility companies that sets the rules for connecting a private, on-site power system, such as solar panels, to the public electricity grid. It outlines safety standards and how customers are compensated for excess energy that is sent back to the grid.

When you sign a DGA with BTU, you are agreeing to abide by necessary safety standards and receive compensation for excess solar generation at the rate set in the BTU Rate Ordinance approved by the Bryan City Council. All distributed generation customers must sign an updated DGA to receive compensation for excess solar generation.

Because the rate ordinance has changed the compensation structure, BTU is requiring a new DGA in order to purchase power from you under the new terms. A new DGA is required to be signed and submitted to BTU by August 21, 2026 to receive compensation.

Request a Breakdown of Your Bill

If you would like more information about the changes to the compensation structure for excess generation or how it will affect your monthly bill, please email solar@btutilities.com or contact Ken Dupré at (979) 821-5776.

Scenario 1: Customer Exports More Than They Consume

Scenario 2: Customer Exports Exactly What They Consume

Scenario 3: Customer Exports Less Than They Consume

Why did BTU change how they compensate solar customers for excess generation?

Who made the decision to make this change?

Was there any opportunity for public input?

How does BTU determine the compensation rate for excess solar generation? Will that calculation ever change?

How will I be notified if rates change in the future?

Is BTU exploring any additional fees associated with distributed generation?

How long will my transition period be before I am under the new compensation structure?

The new ordinance says my solar system must be "wholly unaltered from its original state" to qualify for the transition period. Can you define that?

What is a Distributed Generation Agreement and why do I have to sign a new one?

What has changed from the previous Distributed Generation Agreement that I signed?

What happens if I do not sign an updated Distributed Generation Agreement?

What is the deadline to sign the new Distributed Generation Agreement?

Will BTU physically make my solar system unusable if I do not sign the agreement?

Does my compensation for excess generation exported to the grid depend on my signature?

Will BTU accept a signature under reservation of rights?