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Denton City Council Approves New Solar Buyback Rate for 2025

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The Denton City Council has approved a new solar buyback rate for residents and businesses contributing solar energy to the grid. Effective January 1, 2025, solar customers will be paid $0.05 per kilowatt-hour (kWh) for excess energy generated, a decrease from the previous average rate of $0.1065 per kWh. This adjustment reflects current market conditions and aims to ensure fairness for both solar and non-solar customers.

Denton Municipal Electric (DME), recognized as a Gold Designated SolSmart community, continues its dedication to renewable energy and maintaining 100% renewable electricity. According to Tony Puente, DME General Manager, the new rate balances support for solar customers while keeping energy prices fair for all Denton residents.

The decision stems from the decreasing costs of solar system installations and increased federal tax credits since the launch of DME’s GreenSense and Solar Programs. Subsequently, Denton shifted focus from solar rebates, which were discontinued in 2023, to other environmental programs such as energy efficiency upgrades and electric vehicle (EV) incentives.

A comprehensive review by an independent firm determined the new rate, ensuring long-term solar support without imposing additional costs on non-solar customers.

Despite the rate change, Denton’s commitment to renewable energy remains strong. Solar customers can still take advantage of the GreenSense Incentive Program, which allocates $1 million annually for sustainability initiatives, supported by funding from the City’s data center project.

Denton also continues to simplify processes for adopting solar energy, including offering multi-mode inverters and streamlining permitting for solar installations.

DME, a municipally-owned electric utility since 1905, plans to maintain its role in providing reliable, affordable, renewable energy as part of Denton’s sustainability goals. For further details on the new solar buyback rate or the GreenSense Incentive Program, residents can visit www.cityofdenton.com/rebates.

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