This web page is designed to provide information regarding distribution system interconnection and billing information for customers who want to generate electric power with FERC qualifying facilities status. For other types of customer generation, please contact us and an Entergy Texas representative will be in touch with you.

Generators less than or equal to 100 kW

Customers that generate electric power with FERC qualifying facilities status may take advantage of Schedule SQF. Schedule SQF is available to generation facilities less than or equal to 100 kilowatts (alternating current or “AC”) who do not have any other generator connected to the distribution grid. Under Schedule SQF, the kilowatt-hours produced by the customer and sent to the distribution grid will be credited each month on the customer's electric bill. Special billing provisions are made under Schedule SQF for generators less than 50 kilowatts that use renewable energy resources such as solar, wind, and/or biofuels.

Generators over 100 kW

For FERC qualifying facilities with capacity over 100 kilowatts (AC), please refer to Schedule LQF, which addresses billing and related matters for Nonfirm Energy Purchased from Large Qualifying Facilities. With respect to requesting to interconnect a generator over 100 kilowatts, please view here and Entergy Texas will contact you.

Interconnection requirements

Customers who wish to use Schedule SQF (or to increase/change the size of their qualifying generator) can do so by installing generation equipment approved by Entergy Texas for interconnecting with Entergy Texas' electrical distribution grid. Approved generation systems must comply with Entergy Texas' Distribution Interconnection Process. Please view here for "Distributed Energy Resource Standards for Distribution Interconnection."  In addition, interconnections of distributed-scale generators in Texas are governed by requirements specified in Schedule IPODG.

To install a generator under Schedule SQF or to increase/change the size of an existing generator taking service under SQF to be connected to Entergy Texas' distribution grid, the customer must submit all of the following for systems under 15 AC kW once the system is complete and properly operating.

Systems 15 AC kW or higher MUST have pre-approval before installation.

Applicants can submit a completed Interconnection Application, appropriate IPODG Agreement, and One Line diagram via the Entergy interconnection portal.

Apply online through our new application portal

In addition to submitting the above information, the following requirements must be met:

  • Pay for the reasonable costs of connecting, switching, metering, transmission, distribution, safety provisions and administrative costs that are directly related to the interconnection and in excess of the corresponding costs if interconnection did not occur. Please see Schedule IPODG for pre-interconnection fees.  Interconnection costs shall be paid by the qualifying facility prior to any purchase of energy by Entergy Texas.
  • Have an approved labeled manual disconnect on the outside (available to Entergy Texas 24 hours a day with no notice). Information on labeling requirements.
  • Be able to synchronize with the Utility and stay synchronized.
  • Have safety measures that prevent the generator from feeding electricity to the Utility when the line is non-energized or in an abnormal voltage or frequency situation, or that cause a degradation of the safety or quality of power on the electrical grid. (Control packages are available to do this.)
  • Meet performance and safety standards including:
    • "Distributed Energy Resource Standards for Distribution Interconnection;"
    • Schedule IPODG (Interconnection and Parallel Operation of Distributed Generation)
    • Local and state laws, ordinances, and codes;
    • National codes such as the National Electrical Code, National Electrical Safety Code, Institute of Electrical and Electronics Engineers, Inc., and Underwriters Laboratories Inc.

Monthly billing

After Entergy Texas' approval of the customer's qualifying generation facility, as necessary, Entergy Texas will update the current meter to a bi-directional meter. Unless the customer chooses an alternate metering arrangement as allowed by Schedule SQF, the updated meter will separately register both the amount of electricity purchased from and supplied to the Utility.

For qualifying renewable energy resources  with a design capacity of 50 kilowatts or less and for which interconnection agreement was initiated on or after November 29, 2017, the customer will be billed for all energy (kWh) supplied by the Utility and will be credited for any energy (kWh) supplied to the grid in accordance with Option 2C of Schedule SQF unless otherwise specified by the customer. The customer will receive a credit for all energy (kWh) supplied to the grid during the billing cycle based on Entergy Texas’ standard rates for purchases at Avoided Cost. For current Entergy Texas Avoided Cost Data Filing, please click here.

Below are the 2024 avoided cost buy back rates: 

  • 2024 Summer Rate  $0.028215 cents per kWh
  • 2024 Winter Rate     $0.031135 cents per kWh


  1. Summer months are May through September and Winter months are October through April.
  2. Payments are prorated for seasonal change in price for the transition months. (Example: Billing cycle is April 15 to May 15th. The credit will be paid at the winter rate for April kWh and summer rate for May kWh.)
  3. Updated avoided costs estimates are generally filed each February.

View here for a typical residential bill calculation, using 1,000 kWh of electricity usage. This bill sample includes all current approved residential monthly billing factors.

If an amount of less than $50.00 is due and payable by Entergy Texas to the customer, Entergy Texas will credit the customer's account and the balance shall be carried over to the next month and each successive month until such time as the credit is greater than $50.00, at which time a check will be issued to the customer. Customers who meet the $50.00 threshold will be sent the appropriate documentation that is required to be completed before receiving a check for any purchased energy.

Questions? View a list of frequently asked questions and submit any questions here for potential installations in Entergy Texas' service territory.