Dallas, TX Solar Panels
Solar Power in Dallas
Dallas averages over 300 sunny days per year, making it an ideal city for solar panel installation. With Texas electricity prices up 28% from 2020 to 2024, more Dallas homeowners are turning to solar to gain control over their energy bills.
Palmetto has helped homeowners across Dallas navigate the process from start to finish. Whether you’re just beginning your research or ready to move forward, this guide covers everything you need to know about solar panels for your home in Dallas, TX.
How Much Do Solar Panels Cost in Dallas, TX?
Using real installation data from Dallas and surrounding areas — including Plano, Frisco, Arlington, and Garland — this calculator gives you an honest, localized 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
- Dallas gets over 300 sunny days a year, making it one of the best cities in the country for solar panel installation.
- Dallas homeowners can save up to ~$80,000 over 25 years with solar — and Texas offers strong incentives like a 100% property tax exemption on added home value.
- You can go solar in Dallas with no upfront cost through a lease — starting as low as $89/month for a typical home.
Dallas Electricity Prices
Electricity costs in Dallas have been rising steadily. Here’s what the data shows — and why more homeowners are paying attention.
Texas electricity rates climbed from 12.1 cents per kWh in 2021 to 14.9 cents per kWh in 2024 — a roughly 23% increase in just three years. While Texas rates remain below the national average of 16.5 cents per kWh, the upward trend is clear.
That steady rise is one reason Dallas homeowners are exploring solar installation. Solar can help reduce how much electricity you draw from the grid, giving you more predictability over your monthly energy costs.
Over the long term, Dallas solar panels can act as a hedge against future rate increases. The energy your system produces is yours — and the more you generate at home, the less you’re exposed to rising utility prices.
Price of Energy: Texas vs National Average
Dallas Area Utility Providers
Based on 2023 data — the most recent available — Dallas-area solar installation customers are served primarily by Denton County Electric Cooperative (12.8¢/kWh) and Tri-County Electric Cooperative (14.1¢/kWh).
Both utilities fall below the 2023 national average of 16.0¢/kWh and at or below the Texas state average of 14.50¢/kWh, meaning Dallas-area residents currently enjoy relatively competitive electricity rates.
Even so, utility rates can rise over time. With 300+ sunny days annually, Dallas TX is well-suited for solar — offering long-term price stability regardless of where local rates trend.
Dallas Utilities Electricity Rates
Texas Solar Incentives
Dallas homeowners have access to meaningful solar incentives in Texas — from property tax exemptions to local utility rebates — that can meaningfully reduce the cost of going solar.
The most impactful incentives for Dallas residents include the Texas Solar Property Tax Exemption, which exempts 100% of the added home value from solar, and the Oncor Solar + Storage rebate, which offers DFW customers up to $9,000 when pairing solar with battery storage.
Note that the federal 30% residential tax credit was eliminated by the Big Beautiful Bill. State and local incentives still apply. For those considering solar leasing, Palmetto’s LightReach program handles the commercial investment tax credit 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 Dallas 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. 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 in Dallas 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 Dallas 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 Dallas 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 QuoteDallas 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.
Dallas gets over 230 sunny days per year, making it one of the best cities for solar. High heat and occasional hail are worth noting, but a well-designed system handles both with ease.
Solar Production in Dallas 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 Dallas
We’ve mapped thousands of solar installations across Dallas so you can see just how many of your neighbors have made the switch. Explore the heatmap below to discover which communities and neighborhoods are leading the way on solar energy in the Dallas area.
Leasing Solar Panels
Dallas homeowners served by Oncor Energy have access to Palmetto’s LightReach Power Purchase Agreement (PPA). With a PPA, you agree to purchase the electricity your solar panels produce at a fixed rate per kilowatt-hour (kWh) — rather than paying a large upfront cost for the system itself. Because Dallas summers are long and sunny, your system will produce more electricity in summer months, which means higher solar bill credits and greater utility savings during peak season.
Compared to buying a system outright with cash, a PPA removes the burden of a large upfront investment. There’s no system to maintain, no repair bills to worry about, and no need to manage warranties on your own. Palmetto owns the system and handles all maintenance — so you simply pay for the clean energy your panels produce, typically at a rate below what you’d pay your utility.
If you’d like to understand how a PPA compares to other financing options, Palmetto’s buy vs. lease guide walks through the key differences in plain language. It’s a helpful starting point for any Dallas homeowner weighing their solar options.
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 in Dallas. With over 300 sunny days per year, 5.4 peak sun hours daily, and Texas electricity rates rising 23% since 2021, Dallas homeowners are well-positioned to reduce their energy bills with solar. A typical system can save an estimated ~$80,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — you can go solar with no money down and start saving from day one, with payments starting as low as $89/month.
Dallas does not have traditional net metering. Most Dallas homeowners are served by Oncor Energy, which operates under a Net Billing (Export Credit) program through Shell Energy’s Buyback Plan. Instead of a 1:1 credit, excess solar energy exported to the grid is credited at 7 cents per kWh — below the retail rate of ~14.9 cents/kWh.
Unused credits roll over month to month and are forfeited each December without a cash payout. Shell Energy also charges a $4.95/month fixed fee in addition to Oncor’s standard delivery charges. Because of this, Dallas solar systems are typically designed to maximize self-consumption rather than export excess energy.
Yes, solar panels can increase your home value in Dallas. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $400,000 Dallas home, that could mean roughly $16,400 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 Dallas homeowners can benefit from the increased resale value without paying higher property taxes on it.
With Palmetto’s LightReach lease, Dallas homeowners can go solar for no upfront cost — with monthly payments starting as low as $89/month for a smaller home or $125/month for a medium-sized home. Palmetto owns and maintains the system, so there are no repair bills or warranties to manage.
For those who prefer a cash purchase, a typical 9.72 kW system in Dallas costs 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 more personalized estimate.
For many Dallas homeowners, solar can be worth it financially — especially with a lease option. With Palmetto’s LightReach lease, there is no upfront investment required. Your monthly lease payment is typically lower than your current electricity bill, meaning you can start saving from day one.
Dallas homeowners also benefit from 300+ sunny days per year, rising electricity rates, and Texas’ 100% property tax exemption on solar-added home value. A typical system can generate an estimated ~$80,000 in savings over 25 years.
Palmetto Solar is a strong choice for Dallas homeowners. We’re a national company with deep Texas roots — having completed 3,810 installations across Texas since 2020. Our trusted install network and flexible financing options, including our no-money-down LightReach lease, make going solar straightforward.
With over 20,000 customers served across 31 states and an approval rating above 85%, we bring both experience and local focus to every Dallas installation. Dallas residents can start with a free, personalized quote to see what solar could save them.
With Palmetto’s LightReach lease, Dallas homeowners can go solar for no upfront cost. One simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 9.72 kW system in Dallas, the estimated monthly payment is approximately $125/month — often less than your current electricity bill.
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 not available with cash purchases. Dallas homeowners can start saving from day one with no maintenance responsibilities.