Arlington, TX Solar Panels
Solar Power in Arlington
If you’re an Arlington, TX homeowner thinking about solar panels, you’re in the right place. Texas electricity prices have risen 28% from 2020 to 2024, and many Arlington residents are looking for smarter ways to manage their energy bills.
This guide covers what you need to know about solar installation in Arlington — how the process works, what to expect, and what you could realistically save.
How Much Do Solar Panels Cost in Arlington, TX?
Using real installation data from Arlington and surrounding areas — including Grand Prairie, Mansfield, Euless, and Kennedale — this calculator gives you an honest, local estimate of what solar installation could cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Arlington gets 5.5 peak sun hours daily, giving homeowners strong solar production year-round and potential savings of up to $82,000 over 25 years.
- Texas electricity rates have risen 23% since 2021 — solar panels help Arlington homeowners generate their own power and reduce exposure to future rate increases.
- Arlington homeowners have access to valuable solar incentives, including a 100% property tax exemption on added home value and up to $9,000 from Oncor’s Solar + Storage Program.
Arlington Electricity Prices
Electricity costs in Arlington, TX have been climbing — and for many homeowners, that trend is hard to ignore.
Texas electricity rates rose from 12.1 cents per kWh in 2021 to 14.9 cents per kWh in 2024 — roughly a 23% increase in just three years, outpacing many household budget expectations.
Solar panels allow Arlington, TX homeowners to generate their own electricity, reducing how much power they pull from the grid and helping offset the impact of rising utility rates.
Over time, a solar system can provide more predictable energy costs. As grid electricity prices continue to rise, homeowners with solar are less exposed to those increases — a meaningful long-term advantage.
Price of Energy: Texas vs National Average
Arlington Area Utility Providers
In Arlington, TX, the primary electricity provider is TXU Energy. Based on the most recent 2023 data available, TXU Energy’s average rate is 17.7¢ per kWh — above both state and national benchmarks.
TXU Energy’s rate of 17.7¢ per kWh exceeds the 2023 Texas state average of 14.5¢ and the national average of 16.0¢. Texas’ deregulated energy market and grid infrastructure costs are key factors driving these higher rates.
When electricity rates run higher than average, the math on solar tends to work in a homeowner’s favor. Generating your own power means you’re less exposed to rate fluctuations from your utility provider over time.
Arlington Utilities Electricity Rates
Texas Solar Incentives
Arlington homeowners have access to several solar incentives in Texas that can help reduce the overall cost of solar installation in Arlington.
Key incentives include Texas’ 100% property tax exemption on added home value from solar, plus the Oncor Residential Solar + Storage Program — which offers Arlington-area homeowners up to $9,000 when pairing solar with a battery system.
Note: the federal residential solar tax credit was eliminated by the Big Beautiful Bill. For those considering a lease, LightReach handles the commercial ITC and passes savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Texas Solar Property Tax Exemption | Property Tax Exemption | Texas homeowners receive a 100% property tax exemption on the added home value from a solar installation under TX Tax Code Section 11.27. | Learn More |
| Texas Solar Energy Devices Franchise Tax Exemption | Tax Credit | Texas businesses can deduct the cost of a solar energy device from their state franchise tax liability. | Learn More |
| Oncor Residential Solar + Storage Program | Rebate | Oncor offers residential solar incentives of up to $9,000 for customers in the Dallas-Fort Worth area who install a solar PV system (3–15 kW) paired with a battery storage system. | Learn More |
| Tesla Electric Virtual Power Plant (VPP) Program | Rebate | Powerwall owners in Oncor and CenterPoint service territories can earn a $10/month electric bill credit by enrolling their battery in Tesla Electric’s Virtual Power Plant program. | |
| Texas Solar Rights Protection (HOA Solar Access Law) | Net Metering | Texas law prohibits HOAs, municipalities, and other entities from preventing homeowners from installing rooftop solar panels. | Learn More |
Under Texas Tax Code Section 11.27, the added value that a solar energy system brings to your home is 100% exempt from property tax assessments. Since solar panels can increase a home’s market value by $15,000–$25,000, this exemption can save homeowners an estimated $400–$600 per year in property taxes — potentially more than $10,000 over the lifetime of the system.
To qualify, the solar system must be owned (not leased) and primarily used to produce and distribute energy consumed on-site. Eligible systems include solar photovoltaic panels for electricity generation as well as solar thermal devices such as solar water heaters. The exemption has been available to Texas homeowners since 1978 and applies statewide.
To receive the exemption on your tax bill, residents of Arlington must file Form 50-123 with your county appraisal district by April 30 of the tax year. This is a permanent, ongoing benefit — one of the most valuable solar incentives available to Texas homeowners in 2026.
Texas law allows businesses to deduct the full cost of a qualifying solar energy device from their state franchise tax. This incentive is designed for commercial and business entities — not individual residential homeowners — and can meaningfully reduce the upfront cost of a commercial solar installation.
Qualifying solar energy devices include systems that convert solar energy into thermal, mechanical, or electrical energy, as well as systems that store or distribute that converted energy. This makes both solar PV systems and solar thermal installations eligible for the deduction.
Businesses considering a solar installation should consult a tax professional to determine how this deduction interacts with other business tax strategies. For more details, visit the Texas Comptroller’s franchise tax page or contact the Comptroller’s office directly.
Oncor Electric Delivery’s Residential Solar Program provides incentives for homeowners in the Dallas-Fort Worth area and other parts of Oncor’s service territory. Arlington is served by Oncor, making homeowners in Arlington eligible to participate. As of 2026, the program requires that solar installations be paired with a battery energy storage system to qualify. The solar system must be between 3 kW and 15 kW (DC) in size, and the estimated incentive can reach up to $9,000 for larger systems with significant storage capacity.
The exact rebate amount is not publicly disclosed and depends on multiple factors including system size, battery capacity, and installation details. The $9,000 figure represents the upper end of the incentive range for qualifying solar-plus-storage systems. Both residential and commercial customers in Oncor’s territory may be eligible.
To apply or get a precise incentive estimate, visit the official program website at takealoadofftexas.com or contact Oncor directly. Because this program requires battery pairing, homeowners should factor battery costs into their overall system budget when evaluating the net financial benefit.
Tesla Electric offers a Virtual Power Plant (VPP) program for Powerwall owners in select areas of Oncor’s and CenterPoint’s service territories in Texas. Participants receive a $10 per month electric bill credit in exchange for allowing Tesla to discharge their Powerwall’s stored energy back to the grid during periods of high demand or grid stress.
To participate, homeowners must use Tesla Electric as their Retail Electricity Provider (REP) and own a Tesla Powerwall battery system. The program is designed to support grid reliability on the ERCOT grid while providing Powerwall owners with a modest ongoing financial benefit that helps offset the cost of their battery investment.
This program is particularly relevant given Texas’ history of grid reliability challenges. Homeowners in Arlington interested in enrolling should visit Tesla’s website or contact Tesla Energy directly to confirm current eligibility, service territory coverage, and enrollment steps.
Texas has strong solar access protections enshrined in state law that prevent homeowners associations (HOAs), municipalities, villages, and other private entities from prohibiting or unreasonably restricting the installation of rooftop solar panels. This means that even if your HOA has aesthetic guidelines, it cannot outright ban solar installations on your home.
While HOAs may still impose reasonable restrictions related to placement or appearance — such as requiring panels not to be visible from the street — they cannot use these rules as a de facto ban on solar. This protection gives Texas homeowners the legal right to go solar regardless of their HOA’s preferences, removing a common barrier to adoption.
If you believe your HOA is unlawfully restricting your ability to install solar panels, you may wish to consult the relevant sections of the Texas Property Code or seek legal advice. This protection applies statewide and is an important foundational right for all Arlington solar homeowners.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Texas incentives.
Get a Free QuoteArlington Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Arlington, TX enjoys abundant sunshine and hot summers, boosting strong solar production year-round. Even cloudy months generate meaningful energy, making solar a smart investment for most Texas homes.
Solar Production in Arlington by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Arlington
We’ve mapped every solar installation across the U.S. — and Arlington, TX is lighting up! Explore the heatmap below to see which neighborhoods in your community have already made the switch to solar. Click any hexagon to see how many of your neighbors have gone solar!
Leasing Solar Panels
Arlington, TX is served by Oncor Energy (Dallas), which means Palmetto’s LightReach Power Purchase Agreement (PPA) is available to eligible homeowners here. With a PPA, you don’t pay a fixed monthly amount — instead, you pay for the electricity your panels actually produce, at a set rate per kilowatt-hour. Because Arlington summers are long and sunny, your system produces more in summer months, which also means more bill savings during those peak periods. Payments naturally taper in winter when production dips.
Compared to buying a system outright, a PPA removes the need for a large upfront investment and eliminates the responsibility of maintenance. Palmetto owns and maintains the system throughout the agreement, so if something needs attention, that’s on us — not you. There’s no loan to manage, no repair bills to worry about, and no need to track system performance on your own.
If you’d like to understand how a PPA compares to other ways of going solar, our guide on buying vs. leasing solar walks through the key differences in plain language. For many Arlington homeowners, a PPA is a straightforward way to start generating clean energy and reducing utility costs without taking on the full cost of ownership.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes strong sense for most Arlington, TX homeowners. With 5.5 peak sun hours per day, rising electricity rates (up 23% since 2021), and local incentives like Oncor’s Solar + Storage rebate and Texas’ property tax exemption, the conditions are favorable for long-term savings.
For homeowners concerned about upfront costs, Palmetto’s LightReach lease removes that barrier entirely — you can go solar with no money down and start saving from day one, with Palmetto handling all maintenance.
Arlington, TX does not have traditional net metering. Arlington is served by Oncor Energy (Dallas), which operates under a Net Billing / Export Credit model through Shell Energy’s Buyback Plan. Exported solar energy is credited at 7 cents per kWh — below the retail rate — and applied to reduce your current month’s bill.
Excess credits roll over month to month but are forfeited each December without a payout. Shell Energy also charges a $4.95/month fixed fee in addition to Oncor’s standard delivery charges. While not true net metering, Arlington homeowners can still meaningfully reduce their electricity bills by maximizing self-consumption of their solar production.
Yes, solar panels can increase your home value in Arlington, TX. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. On a $350,000 Arlington home, that’s roughly $14,350 in added value.
Texas also offers a 100% property tax exemption on the added home value from solar under TX Tax Code Section 11.27, meaning Arlington homeowners get the value boost without a higher property tax bill — making solar a strong long-term investment.
With Palmetto’s LightReach lease, Arlington homeowners can go solar for a low fixed monthly payment — starting as low as $89/month for smaller homes — with no upfront cost. Palmetto owns and maintains the system, and passes along savings from the commercial tax credit through lower payments.
For a cash purchase, a typical Arlington home requires a 9.72 kW system priced around $27,296. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate based on your home size.
For many Arlington homeowners, solar can be worth it financially — especially with a lease option. With Palmetto’s LightReach lease, there’s no upfront cost, and your monthly payment is typically lower than your current electricity bill, meaning you can start saving from day one.
With Arlington’s 5.5 peak sun hours daily and electricity rates that have risen 23% since 2021, solar helps reduce exposure to future rate increases. A typical Arlington home can see estimated 25-year savings of around $82,000 — making solar a financially sound long-term decision.
Palmetto Solar is a top choice for Arlington, TX homeowners. As a national company with a local focus, we’ve completed 3,810 installations across Texas since 2020 — backed by a trusted install network and some of the best financing options in the industry.
We offer both flexible lease options through LightReach (no upfront cost) and cash purchase plans tailored to Arlington’s energy needs. With an 85%+ customer approval rating and 20,000+ customers served across 31 states, Palmetto brings experience and reliability to every installation.
With Palmetto’s LightReach lease, Arlington homeowners pay one simple monthly payment that covers the solar system, installation, monitoring, maintenance, and a 90% Production Guarantee — with no upfront cost. For a typical 9.72 kW system in Arlington, the estimated monthly payment is approximately $125/month, calculated using Texas’ production ratio of 1,339 kWh/kW/year at $0.115/kWh.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage over cash purchases, where the residential ITC was eliminated. Most Arlington homeowners find their lease payment is less than their current electricity bill, so savings begin from day one.