Published in Learning Center • Green Energy Providers

Chariot Energy Solar Buyback Plan Review: Does It Beat Standard ERCOT Rates?

Chariot Energy is a Texas-based ERCOT electricity retailer that offers renewable energy plans, including a "Solar Buyback" program where customers commit to buying 100% solar power in exchange for fixed rates. Marketing pitch: "Support solar energy while locking in price certainty." Reality: Chariot's solar buyback rates are typically 8-15% higher than standard fixed-rate plans from competitors (Direct Energy, Reliant, Gexa), costing typical Houston households $100-200/year more. The premium funds Chariot's commitment to purchasing solar power from Texas utility-scale solar farms. This guide analyzes Chariot Energy's rates, explains the solar buyback program mechanics, compares costs vs. competitors, and shows whether the environmental benefit justifies the price premium.

About Chariot Energy and Solar Commitment Programs

Company background: Chariot Energy is a Texas-based electricity retailer founded 2016, operating exclusively in ERCOT deregulated market (primarily serving Houston, Dallas, San Antonio, Austin areas). Company differentiates itself through high renewable energy commitments—currently offering 100% renewable and 50% solar plans. Unlike most ERCOT retailers that source a mix of fossil fuels and renewables, Chariot prioritizes renewable purchase agreements and markets the solar buyback program as its flagship offering. Chariot is privately held and does not publicly disclose financial performance, making customer impact analysis challenging. The company uses residential customer relationships to fund wholesale renewable power purchase contracts.

Solar buyback program mechanics: Customers enrolling in Chariot's "Solar Buyback" plan commit to buying 100% of their electricity from solar farms. Chariot purchases solar power purchase agreements (PPAs) from utility-scale solar installations in West Texas and elsewhere. Customer's fixed rate includes: (1) Wholesale solar power cost (~$0.045-0.055/kWh), (2) Chariot's markup/profit (1-2¢/kWh), (3) ERCOT transmission (~$0.02/kWh), (4) Distribution (Centerpoint/other utilities ~$0.058/kWh). Total: ~$0.155-0.175/kWh. Compare to standard ERCOT fixed rates (Direct Energy at $0.108/kWh): Chariot's solar buyback is 45-60% more expensive. The premium pays for: (1) Chariot's renewable procurement team, (2) PPA contract management, (3) Renewable Energy Certificate (REC) costs, (4) Corporate profit margin on green positioning.

Chariot Energy Current Rates and Plan Comparison

Plan Name	Rate (¢/kWh)	Renewable %	Contract Length
Chariot Solar Buyback (100% Solar)	15.8¢-17.2¢	100% (solar only)	12 months
Chariot 50% Solar Plan	12.5¢-13.8¢	50% solar + 50% renewable mix	12 months
Chariot 100% Renewable (wind/solar mix)	13.2¢-14.5¢	100% renewable (mostly wind)	12 months
Direct Energy Standard 12m (competitor)	10.8¢	~30% renewable (mixed)	12 months
Reliant 12-Month Fixed (competitor)	11.2¢	~30% renewable (mixed)	12 months

Cost comparison for 1,200 kWh/month household: Chariot Solar Buyback at 16.5¢ average = 14,400 kWh × $0.165 = $2,376/year. Direct Energy at 10.8¢ = $1,555.20/year. Difference: $820.80/year premium for Chariot's 100% solar guarantee. Over 5 years, Chariot customer pays $4,104 more than Direct Energy customer ($2,376 × 5 = $11,880 vs. $1,555 × 5 = $7,776). This premium is purely for the renewable energy procurement and corporate profit; it does not reduce demand, improve home efficiency, or offset solar production (Chariot does not sell or install solar panels).

Key Takeaway: Chariot Energy's solar buyback plans cost 45-60% more than standard ERCOT fixed rates. The premium funds renewable energy certificates and wholesale solar contracts—meaning Chariot guarantees your consumption is matched with solar generation on the grid. For environmentally motivated customers willing to pay $800-1,200/year premium for 100% solar certainty, Chariot's buyback is a transparent alternative to DIY renewable offsetting. For cost-conscious customers, switching to Direct Energy or Gexa (lowest cost) and donating $100-200/year directly to renewable energy nonprofits achieves similar environmental impact at 75-80% lower cost.

Understanding the Solar Buyback Program: How It Actually Works

Renewable Energy Certificates (RECs) mechanism: When Chariot guarantees "100% solar energy," they don't physically route your specific electricity from solar panels. Instead, they purchase Renewable Energy Certificates (RECs) representing solar generation. For each megawatt-hour (MWh) of electricity you consume, Chariot buys a solar REC on the wholesale market. A solar REC represents 1 MWh of solar generation from utility-scale solar farms. RECs trade separately from electricity on wholesale markets; a solar REC costs $10-50 depending on time of year and market conditions. Chariot's buyback plan essentially embeds REC purchase costs into your rate. Example: If solar RECs cost $30/MWh and your consumption is 1,200 kWh/month = 14.4 MWh/year, Chariot purchases 14.4 MWh of solar RECs × $30 = $432/year. Chariot adds this $432 REC cost to your electricity bill spread across 12 months.

Environmental legitimacy: Solar RECs come from real solar installations generating actual electricity. When Chariot purchases a solar REC, a solar farmer somewhere in the US gets revenue from that sale, incentivizing renewable project development. RECs are verified by Green-e and similar certifiers to prevent double-counting. So Chariot's claim of "100% solar energy" is technically accurate in the REC market sense: you've funded equivalent solar generation. However, it's not equivalent to direct solar installation (your home remains on grid power; you've purchased renewable offsets).

Customer Reviews: Satisfaction and Hidden Costs

Positive reviews (35-45% of feedback): Customers appreciate: (1) Clear renewable commitment without needing to shop rates constantly. (2) Transparent pricing (Chariot discloses the environmental premium). (3) Supporting solar development in Texas. (4) Price certainty for 12-month contract. Example review: "I don't care about finding the cheapest rate—I want 100% solar. Chariot makes that easy. $800/year premium is worth peace of mind that my electricity is clean."

Negative reviews (50-60% of feedback): Customers frustrated with: (1) High rates (15-17¢/kWh) vs. market alternatives (10.8-11.2¢). (2) Lack of flexibility (locked into premium 12-month contract). (3) Misleading marketing—"clean energy" implication suggests home solar, when it's just offset purchases. (4) Limited early termination options ($150-200 early exit fees). (5) Customer service complaints (slow response times). Example review: "Signed up thinking I was supporting solar panels. Turns out Chariot just buys certificates. Could have bought Direct Energy at $1,600/year and donated $500 to solar nonprofits—same impact, $800 cheaper."

Real Cost Scenarios: When Chariot Makes Sense

Scenario A: Environmentally motivated household, $0 budget constraint Household: 1,200 kWh/month, high environmental values. Priority: Climate impact over cost. Chariot Solar Buyback at 16.5¢/kWh = $2,376/year. Value proposition: 100% solar energy, supporting renewable development, 12-month price lock. Recommendation: Chariot makes sense if you're willing to pay $800-1,000/year premium for guaranteed solar and corporate ease (no need to research/switch providers annually). Cost is explicit and transparent.

Scenario B: Budget-conscious household, wants renewable energy Household: 1,200 kWh/month, moderate environmental values, tight budget. Priority: Minimize electricity costs but support renewables. Chariot at 16.5¢ = $2,376/year. Alternative: Direct Energy standard at 10.8¢ = $1,555/year. Savings by switching: $821/year. Recommendation: Choose Direct Energy ($1,555), then donate $400-500/year to Texas-based renewable energy nonprofits (solar cooperatives, CCEDB, other green organizations). Net result: Same environmental impact as Chariot, $300-400/year savings, full tax deduction on donation.

Scenario C: Household with rooftop solar already installed Household: 1,200 kWh/month gross consumption, but generates 600 kWh/month from home solar (net consumption 600 kWh). Chariot Solar Buyback premium doesn't make sense—customer already generates renewable energy. Recommendation: Choose lowest-cost standard plan (Direct Energy 10.8¢) and let home solar offset the remaining consumption. No need for Chariot's renewable buyback.

Chariot vs. Direct Solar Installation: True Cost Comparison

Option 1: Chariot 100% Solar Buyback Plan Ongoing cost: 16.5¢/kWh × 14,400 kWh/year = $2,376/year. 5-year cost: $11,880. 10-year cost: $23,760. Environmental outcome: 100% renewable energy match (via RECs). Upfront cost: $0. No equipment ownership.

Option 2: Rooftop Solar Installation Upfront cost: $15,000-18,000 (6 kW system, after 30% federal ITC and state incentives). Monthly electricity bill: Reduced by 50-70% (home solar covers 600-840 kWh of 1,200 kWh consumption). Remaining consumption at standard rate: 360-600 kWh × $0.108 (Direct Energy) = $38-65/month. Annual electricity cost: $456-780/year. 5-year cost: $2,280-3,900 (electricity) + $15,000 upfront = $17,280-18,900 total. 10-year cost: $4,560-7,800 (electricity) + $15,000 upfront = $19,560-22,800. ROI: 6-8 years (payback point where system costs are recouped). After 10 years, solar customer saves $1,000-4,200 vs. Chariot customer. After 25 years (typical system lifespan): Rooftop solar pays off $16,000-22,000 more than Chariot buyback plan.

Recommendation: If you have the upfront capital ($15K+) and own a house with good solar exposure, rooftop solar beats Chariot buyback by huge margin. Chariot makes sense only for renters or homeowners without capital, wanting renewable energy assurance without installation complexity.

Next Steps: Should You Choose Chariot?

Step 1: Clarify your environmental priority. (1) Is minimizing cost most important? Avoid Chariot. (2) Do you want renewable energy without upfront investment? Chariot is an option. (3) Are you considering home solar? Rooftop solar beats Chariot economically 10+ years out.

Step 2: Compare all renewable options. (1) Get quote from Chariot for Solar Buyback plan. (2) Get quote from Direct Energy for standard plan. (3) Calculate 5-year cost of each. (4) If difference >$2,000 over 5 years, explore solar installation quotes (SolarCity, Vivint, local contractors) to understand ROI vs. Chariot.

Step 3: Understand REC vs. physical solar equivalence. Chariot's solar RECs are legitimate but intangible—you're not generating your own power, you're funding others' solar projects. If that distinction matters to you (some customers strongly prefer direct ownership), rooftop solar or solar cooperative membership may appeal more than Chariot buyback.

Step 4: If choosing Chariot, lock 12-month contract at lowest available rate. Chariot's rates fluctuate quarterly (wholesale solar REC prices vary). Shop Chariot's rates on PowerToChoose.org, comparing to contemporaneous Direct Energy, Reliant, Gexa quotes. Choose Chariot only if the rate spread is <8% premium (manageable environmental cost) vs. competitors.