Solar Guide
Solar in Dallas
Dallas homeowners are turning to solar energy as Texas electricity prices have increased 28% from 2020 to 2024. With the city’s abundant sunshine and rising energy costs, solar installation offers a practical path to lower energy bills and greater control over your home’s energy future.
Texas ranks 7th for residential solar installations nationwide, making Dallas an ideal location for solar adoption. Our comprehensive guide to home solar panels will help you understand the installation process and make informed decisions for your Dallas home.
Key Takeaways
- Dallas receives abundant sunshine year-round with excellent solar potential despite occasional storms and winter clouds.
- Texas electricity rates increased 28% from 2020 to 2024, making solar a practical solution for rising energy costs.
- Solar systems provide predictable energy costs and protect homeowners from future utility rate increases over 25 years.
Solar Cost Calculator
Our Dallas solar cost calculator uses real installation data from neighborhoods like Plano, Frisco, and Richardson. Get accurate pricing estimates based on actual local projects, not generic numbers from other states.
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Dallas Electricity Prices
Understanding Dallas electricity costs helps homeowners make informed energy decisions as rates continue climbing across Texas.
Texas electricity rates jumped from 12.1 cents per kWh in 2021 to 14.9 cents in 2024, adding hundreds to annual energy bills.
Solar panels generate electricity at a fixed cost, protecting Dallas homeowners from future rate increases while reducing monthly energy expenses.
Over 25 years, solar systems provide predictable energy costs and substantial savings compared to traditional electricity from the grid.
Price of Energy: Texas vs National Average
Dallas Area Utility Providers
Dallas residents primarily receive electricity from Denton County Electric Cooperative (12.8¢/kWh) and Tri-County Electric Cooperative (14.1¢/kWh), both offering competitive rates compared to national averages in 2023.
These cooperative utilities maintain lower rates than the 2023 national average of 16.0¢/kWh through community ownership and local management, though they slightly exceed Texas’ state average of 14.5¢/kWh.
With electricity costs consistently rising, solar panels help Dallas homeowners lock in predictable energy expenses while reducing dependence on utility rate increases over time.
Dallas Utilities Electricity Rates
Texas Solar Incentives
Dallas homeowners can significantly reduce solar installation costs through federal and state programs, including solar incentives in Texas.
Texas offers property tax exemptions that prevent solar installations from increasing your home’s taxable value. Most Dallas-area utilities also provide net metering programs that credit excess energy production.
These incentives can change over time, so research current programs thoroughly and consider acting promptly to maximize your savings.
$8,189
Average savings in Texas solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| Property Tax Exemption | State tax exemption | No property tax increase from solar installations. Example: $20k system saves ~$400/year at 2% tax rate. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Texas offers a property tax exemption for solar and wind-powered energy devices, which means homeowners can exclude the added value of their solar system from their property tax assessment. When you install solar panels on your home, they typically increase your property’s appraised value, but this exemption ensures you won’t pay additional property taxes on that increased value.
To qualify for this exemption, your solar energy system must be installed on property you own and use as your residence. You’ll need to apply for the exemption with your local county appraisal district using Form 50-123 before the May 1 deadline. The exemption continues as long as you own the property and the solar system remains installed. Since property tax is administered locally in Texas, it’s important to contact your specific appraisal district to confirm eligibility requirements and ensure you receive the full benefit of this valuable tax savings.
Net metering and net billing programs in Texas vary significantly by utility company, offering different ways for solar homeowners to receive credit for excess electricity their systems produce. Unlike traditional net metering where you receive full retail credit, most Texas utilities now offer net billing programs that credit exported solar energy at lower wholesale rates, typically ranging from 3-8 cents per kilowatt-hour depending on your utility provider.
The financial benefits depend on your specific utility company and chosen retail energy provider (REP). For example, CenterPoint Energy customers using Shell Energy’s buyback plan receive 7 cents per kWh for exported energy, while cooperative utilities like Pedernales Electric offer around 6 cents per kWh. Some utilities like CPS Energy in San Antonio still offer monthly net metering with seasonal credit rates, while others like Austin Energy use a unique “Value of Solar” rate of about 10 cents per kWh for all production.
Most programs settle monthly with excess credits either rolling over to future bills or being forfeited at year-end in December. Important considerations include additional monthly fees (ranging from $4.95 to $30 depending on the utility), minimum bill requirements, and the fact that in deregulated areas of Texas, you’ll need to work with approved retail energy providers to access solar buyback programs. Always verify current rates and terms with your specific utility, as policies and credit rates change frequently.
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 receives abundant sunshine year-round, with peak solar production in summer months. Despite occasional storms and winter clouds, Dallas offers excellent solar potential.
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 Installations in Dallas
We’ve mapped every solar installation across the United States to show you something exciting: your Dallas neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.
Leasing Solar Panels
Dallas homeowners can access solar through Palmetto’s Power Purchase Agreement (PPA) program available through Oncor Energy. With a PPA, you pay only for the electricity your solar panels produce at a fixed rate per kilowatt-hour, typically lower than your current utility rate.
This means no large upfront investment, no maintenance responsibilities, and immediate savings on your electricity bills. Your monthly solar costs will vary seasonally – higher in summer when panels produce more energy, lower in winter – but you’ll save money year-round compared to traditional utility rates.
Unlike purchasing a system outright, a PPA eliminates the need for system maintenance, repairs, or performance monitoring. Palmetto handles all equipment servicing while you enjoy predictable energy costs and protection from rising utility rates. Learn more about solar financing options or explore our LightReach program for additional solar solutions.
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 excellent sense in Dallas. The city receives abundant sunshine year-round, creating ideal conditions for solar energy production. Dallas homeowners can save an average of $80,000 over 25 years with solar installations.
With Texas electricity rates increasing 28% from 2020 to 2024, solar panels provide protection from rising utility costs. The federal tax credit covers 30% of installation costs, and Texas offers property tax exemptions for solar systems, making the investment even more attractive for Dallas residents.
Dallas does not have traditional net metering. Instead, Dallas residents served by Oncor Energy participate in Shell Energy’s buyback program, which credits exported solar energy at 7 cents per kWh starting in April 2024.
This net billing system stores excess production credits in your “buyback bank” to reduce future electric bills. Credits roll over monthly but are forfeited each December without payout, along with Shell Energy’s $4.95 monthly fixed charge.
Yes, solar panels typically increase home value in Dallas. Research shows that solar installations can boost property values by an average of 4.1% nationwide, according to a Zillow study.
In Dallas’ competitive real estate market, solar panels make homes more attractive to buyers seeking lower energy costs and environmental benefits. Texas’ property tax exemption for solar installations means you won’t pay additional property taxes on the increased value, making solar a smart investment for Dallas homeowners.
Solar installation costs in Dallas range from $14,179 to $25,057 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home (2,000-3,000 sq ft) requires a 9.72 kW system costing approximately $19,107 after incentives.
These prices include equipment, installation, permits, and interconnection. With average monthly savings of $183, most Dallas homeowners achieve payback in 7.8 years while enjoying 25 years of energy production and savings.
Yes, solar is financially worth it for most Dallas homeowners. With Texas electricity rates rising 28% since 2020, solar panels provide predictable energy costs and protection from future rate increases over 25 years of system life.
Dallas homes typically see $183 monthly savings with 7.8-year payback periods. The 30% federal tax credit and Texas property tax exemptions make solar installations even more attractive financially for local residents.
We believe Palmetto Solar is the best choice for Dallas homeowners. As a national company with local focus, we’ve completed 3,810 installations across Texas since 2020, giving us deep experience with local conditions and regulations.
We offer some of the industry’s best financing options alongside our trusted installation network. Our comprehensive approach handles everything from initial consultation through system activation, ensuring Dallas residents receive quality solar solutions with ongoing support.