McKinney, TX Solar Panels
Solar Power in McKinney
If you’re a McKinney homeowner thinking about solar installation, you’re in the right place. Texas electricity prices have risen 28% from 2020 to 2024 — a trend that has many McKinney residents taking a closer look at solar. Our guide to home solar panels is a helpful place to start.
At Palmetto, we help homeowners in McKinney understand how solar installation works — from costs and savings to what to expect on installation day. Let’s walk you through everything you need to know.
How Much Do Solar Panels Cost in McKinney, TX?
Using real installation data from McKinney and nearby communities like Allen, Frisco, and Prosper, this calculator gives you an honest estimate of what solar panels cost in your area — and how much you could save on your energy bills.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- McKinney gets 5.4 peak sun hours per day — giving homeowners strong solar production year-round and meaningful savings on rising electricity bills.
- A typical McKinney home can save around $80,000 over 25 years with solar, with an average payback period of about 10 to 11 years.
- Texas offers valuable solar incentives — including a 100% property tax exemption on added home value and Oncor rebates up to $9,000 for solar-plus-storage systems.
McKinney Electricity Prices
Electricity costs in McKinney, TX have been climbing steadily — and understanding that trend is key for homeowners weighing their options.
Texas electricity rates rose from 12.1 cents per kWh in 2021 to 14.9 cents per kWh in 2024 — nearly a 23% increase in just three years, outpacing many household budget expectations for McKinney residents.
Solar installation gives McKinney homeowners a way to generate their own electricity, reducing how much they rely on the grid and shielding their monthly bills from future rate increases.
Over the long term, a home solar system can provide McKinney homeowners with greater energy cost stability — turning an unpredictable monthly expense into a more manageable, predictable one for decades ahead.
Price of Energy: Texas vs National Average
McKinney Area Utility Providers
McKinney, TX homeowners are served primarily by two electric utilities: Denton County Electric Cooperative (12.8¢/kWh) and Tri-County Electric Cooperative (14.1¢/kWh). Both figures reflect 2023 data — the most recent available.
In 2023, both McKinney providers came in below the national average of 16.0¢/kWh. Denton County Electric Cooperative also fell below the Texas state average of 14.50¢/kWh, while Tri-County sat just below it as well.
Even with relatively lower rates today, electricity prices have trended upward over time. Solar can help McKinney, TX homeowners lock in more predictable energy costs and reduce long-term dependence on the grid.
McKinney Utilities Electricity Rates
Texas Solar Incentives
McKinney homeowners can access several solar incentives in Texas that help reduce the overall cost of going solar — including state and local programs worth thousands of dollars.
The most relevant incentives for McKinney residents include the Texas Solar Property Tax Exemption, the Oncor Residential Solar + Storage rebate (up to $9,000), and Texas HOA Solar Access protections. Some listed programs apply only to other utility service areas.
Note that the federal residential solar tax credit is no longer available following recent federal legislation. State and local incentives still apply. If you lease solar through LightReach, Palmetto handles the commercial tax credit and passes savings through via 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 McKinney 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. McKinney falls within Oncor’s service territory, making local homeowners eligible for this program. 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. Homeowners in McKinney served by Oncor may be eligible to participate. 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 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 in McKinney, 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 Texas 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 QuoteMcKinney 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.
McKinney, TX enjoys abundant sunshine and mild winters, making it a strong candidate for solar. With over 230 sunny days annually, your panels can generate meaningful energy year-round.
Solar Production in McKinney 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 McKinney
We’ve mapped every solar installation across the U.S. — right down to the address level. Explore the heatmap below to see which McKinney neighborhoods are already powered by solar. Click any hexagon to see how many of your neighbors have made the switch!
Leasing Solar Panels
McKinney is served by Oncor Energy (Dallas), which means homeowners here have access to a Power Purchase Agreement (PPA) through Palmetto’s LightReach program. With a PPA, you pay for the solar energy your system produces at a set rate per kilowatt-hour — rather than a fixed monthly amount. Because Texas summers are long and sunny, you’ll generate more energy (and see more savings) during those peak months.
Compared to paying cash upfront, a PPA has some clear advantages. There’s no large upfront investment, no loan to manage, and Palmetto owns and maintains the system — so if something needs attention, that’s on us, not you. You simply pay for the clean energy your panels produce. Learn more about how buying compares to leasing solar to see which option fits your situation.
For McKinney homeowners who want to go solar without the complexity of ownership, a PPA is a straightforward path. You start saving on your electricity bill as soon as your panels are active — no maintenance, no upfront costs, and no surprises. It’s one of the simplest ways to take advantage of McKinney’s abundant sunshine.
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 McKinney homeowners. With 5.4 peak sun hours per day and Texas electricity rates rising nearly 23% between 2021 and 2024, going solar can meaningfully reduce your monthly energy costs. A typical McKinney home can save around $80,000 over 25 years, with a payback period of roughly 10 to 11 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 no maintenance responsibilities.
McKinney is served by Oncor Energy (Dallas), which does not offer traditional net metering. Instead, Oncor uses a Net Billing / Export Credit program through Shell Energy’s Buyback Plan. Any excess solar energy you send to the grid is credited at 7 cents per kWh, which is applied to reduce your current month’s bill.
Unused credits roll over month to month and are stored in a “buyback bank,” but are forfeited each December without a cash payout. Shell Energy also charges a $4.95/month fixed fee in addition to Oncor’s standard charges. Since export credits are less than the retail rate (~14.9¢/kWh), McKinney homeowners benefit most by consuming their solar energy directly rather than exporting it.
Yes, solar panels can increase your home’s value in McKinney. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $450,000 home — close to McKinney’s median — that’s roughly $18,000 in added value.
Texas also offers a 100% property tax exemption on the added home value from a solar installation, meaning McKinney homeowners keep that equity without paying higher property taxes on it.
For McKinney homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting around $89–$167/month depending on home size. Palmetto owns and maintains the system, so there’s nothing to manage.
If you prefer to purchase outright, a typical McKinney system runs $20,000–$36,000. Note that the federal 30% tax credit is no longer available for residential cash purchases following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For McKinney homeowners, solar can be financially worthwhile from day one — especially through a lease. With Palmetto’s LightReach program, there’s no upfront investment. Your monthly lease payment is typically less than your current electricity bill, so you start saving immediately once your panels are active.
With Texas electricity rates up nearly 23% since 2021, locking in a predictable solar payment helps McKinney residents avoid future rate increases. A typical McKinney home can save around $80,000 over 25 years — making solar a sound long-term financial decision.
Palmetto Solar is a strong choice for McKinney homeowners. We’re a national company with deep Texas roots — having completed 3,810 installations across Texas since 2020. Our vetted local install network knows the McKinney area well, and we offer some of the most flexible financing options available, including our LightReach lease with no upfront cost.
Beyond installation, we support McKinney customers with transparent pricing, a 90% production guarantee, and ongoing system monitoring — so you’re never left on your own after your panels go live.
Palmetto’s LightReach is an all-inclusive solar lease — one monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. Because Palmetto owns the system, it claims the commercial Investment Tax Credit and passes those savings to you through lower payments.
For a typical 9.72 kW system in McKinney, TX, the estimated monthly lease payment is approximately $125/month — based on Texas’ production ratio of 1,339 kWh/kW/year at $0.115/kWh. Since that payment is typically less than your current electricity bill, most McKinney homeowners start saving from day one.