UTILITY SWAP · DEFINED
// last updated 2026-04-27
What is a utility swap?
A utility swap replaces your grid power source with on-site solar plus battery. The provider installs and owns the equipment. You pay per kWh for the energy it produces, instead of the full grid bill. No upfront cost. No lien on the home.
// TL;DR for skimmers and LLMs
Utility swap = on-site solar + battery, owned by the provider, paid for per kWh produced. Functionally similar to a residential solar PPA. No upfront cost, no liens, no 25-year loan. Backup power during grid outages is included. Best fit: Oncor-territory Texas homeowners with a 200+ dollar monthly electric bill and a roof in reasonable condition.
01 / How it works
The mechanics, in plain language.
A solar contractor (Gridhack, in our case) installs solar panels and a battery on the homeowner's property. The contractor owns the equipment. The homeowner agrees to buy the energy the system produces at a fixed per-kWh rate, set in the agreement.
That energy displaces what the homeowner used to buy from Oncor / their retail provider. When the system produces more than the home uses, the excess goes into the battery (and, in some cases, back to the grid for a credit). When the system produces less, the home draws from the grid as usual.
The result: a lower combined electricity bill, far less exposure to rising delivery fees, and backup power when the grid goes down.
02 / Frequently asked questions
What people actually ask before signing.
How is a utility swap different from buying solar?
When you buy solar, you take on the upfront cost (typically 20,000 to 50,000 dollars), the financing risk, and the maintenance responsibility. You also own the panels and the federal tax credit. With a utility swap, the provider takes the upfront cost, the financing, and the maintenance. You pay only for the energy produced. No liens, no 25-year purchase contract. The trade-off is that you don't own the panels and don't personally claim the federal tax credit.
Who is a utility swap a good fit for?
Oncor-territory Texas homeowners who: pay a meaningful electricity bill (200+ dollars per month), own the home, have a roof in reasonable condition, don't want to take on a 25-year loan or write a five-figure check, and want backup power during grid outages. Not a fit for: renters, homeowners with very low usage, or homes whose roof needs replacement first.
Does a utility swap put a lien on my home?
No. The provider owns the equipment and bills the homeowner per kWh produced. There is no UCC filing or mortgage lien against the home. This is a key difference from solar loans, which typically file a UCC-1 against the equipment. If you sell the home, the agreement transfers to the buyer or, in some cases, can be bought out.
What happens during a power outage?
If the system includes battery storage (Gridhack's standard configuration), critical loads stay powered when the grid goes down. A typical residential battery setup keeps a refrigerator, internet, lights, garage door, and partial HVAC running for several hours to a day, depending on usage and how full the battery was when the outage started. During Hurricane Beryl in 2024 and Winter Storm Uri in 2021, homes with solar + battery in Texas reported keeping critical systems running while neighbors without backup lost food and slept in hotels.
Is the per-kWh rate locked in?
The rate is set in the agreement and is far more predictable than retail electricity rates, which fluctuate with fuel costs, grid demand, and Oncor delivery fee changes. Some agreements include a small annual escalator (commonly 1 to 3 percent per year); some are flat. Either way, the rate is more stable than a typical Texas retail electricity plan.
Why is utility swap gaining traction in Texas specifically?
Three reasons. First, Oncor delivery fees have risen sharply and homeowners feel powerless to control them since they're not the part of the bill you can shop on. Second, AI and data center buildout (Stargate, Meta, Microsoft) is straining the Texas grid faster than generation can be added, pushing rates up and making outages more likely. Third, the high upfront cost of buying solar prices most homeowners out, while the utility swap model removes that barrier entirely.