Solar Guide
Solar in McKinney
McKinney residents are exploring solar panel installation as Texas electricity prices have increased 28% from 2020 to 2024. With abundant sunshine and rising utility costs, solar offers a smart path to energy independence.
Understanding your home solar panel options is the first step toward making an informed decision about this proven energy solution in McKinney.
Key Takeaways
- McKinney receives abundant sunshine year-round making it an excellent location for solar energy production and long-term savings.
- Texas electricity rates have increased 28% since 2020 while solar offers stable energy costs and protection from future rate hikes.
- Federal tax credits and Texas property tax exemptions can save McKinney homeowners thousands on their solar installation costs.
Solar Cost Calculator
Our calculator uses real installation data from McKinney neighborhoods like Stonebridge Ranch, Craig Ranch, and Adriatica Village. Get accurate solar costs based on actual local installations, not generic estimates.
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McKinney Electricity Prices
McKinney residents face rising electricity costs, with Texas rates climbing 23% since 2021 while solar offers energy independence.
Texas electricity rates increased from 12.1 cents per kWh in 2021 to 14.9 cents in 2024, adding hundreds to annual energy bills.
Solar panel installation in McKinney allows homeowners to generate their own electricity, reducing dependence on the traditional utility grid and rising rates.
With McKinney’s abundant sunshine, solar systems provide decades of stable energy costs, protecting families from future electricity price increases over time.
Price of Energy: Texas vs National Average
McKinney Area Utility Providers
McKinney residents primarily receive electricity from Denton County Electric Cooperative, which charged 12.8¢ per kWh in 2023—significantly below national and state averages.
This cooperative’s lower rates reflect efficient local management and Texas’ competitive energy market, staying well under the 16.0¢ national average and 14.50¢ state average.
Even with competitive rates, solar panels can further reduce electricity costs while providing energy independence and protection against future utility rate increases.
McKinney Utilities Electricity Rates
Texas Solar Incentives
McKinney residents can reduce solar installation costs through solar incentives in Texas and federal programs designed to make clean energy accessible.
Texas offers property tax exemptions that prevent solar installations from increasing your home’s taxable value, providing ongoing savings for McKinney homeowners who invest in solar panels.
Net metering policies allow you to earn credits for excess energy your system produces, further offsetting electricity costs over time.
$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 installation 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 1st deadline. The exemption continues as long as you own the property and the solar system remains in place.
This exemption is particularly valuable because it protects you from paying higher property taxes due to your investment in clean energy. Since property tax rates and home values vary by location in Texas, the actual dollar savings will depend on your local tax rate and how much the solar installation increases your home’s appraised value. Be sure to contact your local appraisal district for specific guidance on the application process and to confirm eligibility requirements in your area.
Net metering in Texas varies significantly by utility company, with most areas offering net billing (export credit) rather than traditional 1:1 net metering. Under these programs, your solar panels first power your home directly, helping you avoid purchasing electricity at retail rates. Any excess energy your system produces is then sent to the grid, where you receive credits that reduce your monthly electric bill.
The financial benefits depend on your specific utility company and location. Export credit rates typically range from 3-8 cents per kWh for excess solar energy sent to the grid, though some utilities like Shell Energy offer 7 cents per kWh through their buyback program. True 1:1 net metering, where you receive full retail credit for excess production, is only available in select areas like Grayson Collin Electric Cooperative. Most programs settle monthly, meaning excess credits don’t roll over to the next month, while some utilities forfeit unused credits each December. Additional fees may apply, such as monthly distributed generation charges ranging from $10-30 depending on your utility.
Eligibility requirements and program details vary by utility company, so it’s important to check with your specific provider. Some utilities have capacity limits or require special interconnection agreements. Homeowners should be aware that Texas’ deregulated energy market means your retail energy provider (REP) may be different from your transmission and distribution utility (TDU), which can affect your net metering options and rates.
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’s hot summers and mild winters create excellent solar conditions year-round. Despite occasional storms, proper system design maximizes energy production effectively.
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 Installations in McKinney
We’ve mapped every solar installation across the United States to show you how McKinney neighborhoods are embracing clean energy. Click any hexagon to discover how many of your neighbors have already made the switch to solar power!
Leasing Solar Panels
McKinney residents have access to solar leasing options through Palmetto’s LightReach program, which offers an alternative to purchasing solar panels outright. With a solar lease, you pay a fixed monthly amount based on your system’s estimated production, providing predictable energy costs without the upfront investment.
Leasing eliminates the need for system maintenance, repairs, or monitoring – Palmetto handles all technical aspects while you enjoy immediate solar savings. This approach is particularly beneficial for homeowners who want solar benefits without managing equipment or dealing with warranty issues over the system’s lifetime.
Compared to cash purchases, leasing requires no initial investment and includes comprehensive maintenance coverage. While cash buyers own their systems and may see higher long-term returns, leasing provides immediate savings with zero responsibility for system performance or upkeep, making solar accessible to more McKinney families.
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 McKinney due to abundant sunshine, rising electricity costs, and favorable incentives. Texas electricity rates have increased 28% since 2020, making solar an attractive way to lock in stable energy costs.
McKinney homeowners can take advantage of the 30% federal tax credit and Texas property tax exemptions, with average savings of $80,000 over 25 years. The city’s excellent solar conditions provide strong year-round energy production.
McKinney doesn’t have traditional 1:1 net metering. Instead, residents receive net billing export credit through Shell Energy’s Buyback Plan, which credits excess solar energy at 7 cents per kWh.
This means your solar panels first power your home directly, then excess energy goes to the grid for credits. Credits roll over monthly but are forfeited each December without payout.
Yes, solar panels do increase home value in McKinney. A Zillow study shows solar panels increase home value by 4.1% nationwide, which translates to approximately $12,000-$15,000 for the average McKinney home.
Texas property tax exemptions mean you won’t pay additional taxes on this increased value, making solar a smart investment that pays immediate dividends while boosting your home’s marketability and resale potential.
Solar costs in McKinney range from $14,179 to $25,057 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home needs a 9.72 kW system costing $19,107 after the 30% federal tax credit.
Texas property tax exemptions prevent solar from increasing your taxable home value, providing additional savings. With average monthly savings of $183, most McKinney homeowners see payback in 7-8 years.
Yes, solar is financially worth it in McKinney. With Texas electricity rates rising 28% since 2020 and abundant sunshine year-round, solar offers excellent returns through immediate monthly savings and long-term value.
McKinney homeowners typically save $80,000 over 25 years while achieving payback in 7-8 years. Federal tax credits and Texas property tax exemptions reduce upfront costs, making solar a smart financial investment that protects against future rate increases.
Palmetto Solar is the leading solar company serving McKinney, TX. We’ve completed over 3,810 installations across Texas since 2020, bringing proven expertise to local homeowners.
Our comprehensive approach includes some of the industry’s best financing options and a trusted network of certified installers. We handle everything from permits to activation, making solar simple and accessible for McKinney families.