McKinney, TX Solar Panels
Solar Power in McKinney
McKinney homeowners are turning to solar energy for long-term savings and energy independence. With Texas electricity prices up 28% from 2020 to 2024, solar panels for home use offer protection against rising utility costs.
This guide covers everything you need to know about solar installation in McKinney—from local incentives to choosing the right system for your home.
How Much Do Solar Panels Cost in McKinney, TX?
Our calculator uses real installation data from McKinney homes—including neighborhoods like Stonebridge Ranch, Craig Ranch, and Eldorado—to show you accurate solar costs. Get personalized estimates based on what your neighbors actually paid, not industry averages.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- McKinney receives abundant sunshine year-round with 5.4 peak sun hours daily, making it an ideal location for solar energy production.
- Texas electricity rates increased 23% from 2021 to 2024, while solar panels lock in predictable energy costs for 25+ years.
- A typical McKinney solar system can save homeowners around $80,000 over 25 years while reducing carbon emissions equivalent to planting 175 trees.
McKinney Electricity Prices
Understanding electricity costs in McKinney helps you make informed decisions about your home’s energy future and long-term budget planning.
Texas electricity rates have climbed from 12.1 cents per kWh in 2021 to 14.9 cents per kWh in 2024—a 23% increase in just three years that directly impacts McKinney household budgets.
Solar panels generate electricity at a fixed cost, protecting homeowners from future rate increases. Once your system is installed, the energy it produces remains consistent regardless of utility price fluctuations.
Over a typical 25-year lifespan, solar systems can save McKinney homeowners thousands of dollars. As electricity rates continue rising, your solar investment becomes increasingly valuable, providing predictable energy costs and financial stability.
Price of Energy: Texas vs National Average
McKinney Area Utility Providers
McKinney residents served by Denton County Electric Cooperative paid an average of 12.8¢ per kWh in 2023—about 20% below the national average of 16.0¢ per kWh and 12% below Texas’ state average of 14.50¢.
Denton County Electric Cooperative’s competitive rates reflect its nonprofit cooperative structure and efficient distribution network. However, even with below-average rates, McKinney homeowners still face rising electricity costs as Texas energy demand continues growing.
Lower electricity rates mean solar installations in McKinney may have longer payback periods than higher-cost areas. That said, solar panels lock in predictable energy costs for 25+ years, protecting against future rate increases regardless of today’s baseline prices.
McKinney Utilities Electricity Rates
Texas Solar Incentives
McKinney homeowners can reduce solar installation costs through solar incentives in Texas. These programs help make clean energy more accessible and affordable.
Texas offers a property tax exemption that prevents your home’s value increase from solar panels from raising your property taxes. Additionally, most local utilities provide net metering programs that credit you for excess energy your system generates.
Review the incentives table below to understand potential savings. These programs can change, so research current offerings and act when opportunities align with your goals.
| Incentive | Type | Description | Source |
|---|---|---|---|
| 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 |
Texas offers a property tax exemption for solar and wind-powered energy devices installed on your property. This exemption prevents your local appraisal district from adding the value of your solar energy system to your property’s assessed value for tax purposes. Without this exemption, installing solar panels could increase your property taxes since they add value to your home. With the exemption, you only pay property taxes based on your home’s value without the solar system included, potentially saving you hundreds of dollars annually depending on your local tax rates and system size.
To qualify for this exemption, you must own the solar energy device and it must be installed on property you own in Texas. You’ll need to file Form 50-123 (Exemption Application for Solar or Wind-Powered Energy Devices) with your county appraisal district. The general deadline for filing is before May 1st, though you should contact your local appraisal district to confirm specific requirements and timing. This exemption applies to all local property taxes, including school district, county, and city taxes. Since property tax is assessed and administered locally in Texas rather than at the state level, your actual savings will depend on your local tax rates and your system’s added value to your property.
Net metering and net billing policies in Texas vary significantly by utility provider, as the state operates a deregulated electricity market in most areas. Unlike traditional net metering where excess solar energy is credited at full retail rates, most Texas utilities now offer net billing programs that credit exported solar energy at lower wholesale rates, typically ranging from 3 to 8 cents per kilowatt-hour. The specific terms depend on your local utility or the Retail Energy Provider (REP) you choose in deregulated areas.
In deregulated areas served by major transmission companies like Oncor (Dallas), CenterPoint (Houston), AEP Texas, and TNMP, homeowners typically work with Shell Energy’s Buyback Plan, which credits exported energy at 7 cents per kWh as of April 2024. These credits roll over month to month but are forfeited each December without payout. Shell Energy charges an additional $4.95 monthly fee on top of your transmission company’s charges. Some electric cooperatives like Grayson Collin Electric Cooperative offer true 1:1 net metering with credits that carry over year to year, while others like CPS Energy (San Antonio) and Austin Energy have unique programs with monthly settlements and December forfeitures.
Eligibility typically requires installing an approved solar system and enrolling in your utility’s distributed generation program. Important considerations include understanding whether your utility offers true net metering (1:1 credit) or net billing (reduced credit rates), any monthly fees associated with solar programs (ranging from $10 to $30 depending on the utility), and how excess credits are handled—most utilities settle monthly with no annual payout. Homeowners in deregulated areas should carefully compare REP options, as rates and terms can vary significantly. Some utilities like Tri-County Electric Co-op charge a $12 monthly distributed generation fee, while others like Xcel Energy offer options with no credits but also no fees.
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 enjoys abundant sunshine year-round, with hot summers maximizing solar production. Even during cooler months, modern panels efficiently capture sunlight, making McKinney ideal for solar energy.
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 United States to help you explore the clean energy revolution happening right in McKinney. Click any hexagon to discover how many of your neighbors have already made the switch to solar power.
Leasing Solar Panels
McKinney residents have flexible options for going solar. Depending on your utility provider, you may qualify for Palmetto’s LightReach program, which offers Power Purchase Agreements (PPAs) in areas served by Oncor Energy and solar leases through providers like Denton Municipal Electric and Grayson Collin Electric Cooperative.
With a PPA, you pay only for the electricity your panels produce at a set rate per kilowatt-hour—typically lower than utility rates. This means no upfront costs, no maintenance responsibilities, and immediate savings on your energy bills. Palmetto handles installation, monitoring, and all system maintenance throughout the agreement.
Compared to paying cash upfront, leasing or choosing a PPA eliminates the need to manage equipment repairs or performance issues. Your solar savings start from day one without tying up capital or taking on the responsibilities of system ownership, making clean energy accessible regardless of your financial situation.
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 McKinney. With 5.4 peak sun hours daily and abundant sunshine year-round, McKinney provides excellent conditions for solar energy production. Texas electricity rates have increased 23% from 2021 to 2024, while solar panels lock in predictable energy costs for 25+ years.
A typical McKinney solar system can save homeowners around $80,000 over 25 years with a payback period of approximately 10.6 years. Texas also offers a property tax exemption that prevents solar installations from increasing your property taxes, making the investment even more attractive for McKinney residents.
McKinney residents are primarily served by Oncor Energy (Dallas), which operates under Texas’ deregulated electricity market. Most homeowners work with Shell Energy’s Buyback Plan, offering net billing rather than traditional net metering.
With Shell Energy, exported solar energy receives credits at 7 cents per kWh (as of April 2024). These credits roll over monthly but are forfeited each December without payout. Shell Energy charges an additional $4.95 monthly fee beyond Oncor’s transmission charges.
Yes, solar panels typically increase home value in McKinney. A Zillow study found that homes with solar panels sell for 4.1% more on average than comparable homes without solar.
For a median-priced McKinney home, this translates to thousands of dollars in added value. Additionally, Texas’ property tax exemption ensures your solar installation won’t increase your property taxes, allowing you to benefit from the added home value without higher tax bills.
Solar installation costs in McKinney vary by home size and energy needs. Based on actual Palmetto installations in Texas, a typical medium home (2,000-3,000 sq ft) needs a 9.72 kW system costing around $27,296 at $2.81 per watt.
Smaller homes (under 2,000 sq ft) average $20,256 for a 6.97 kW system, while larger homes (over 3,000 sq ft) typically invest $35,795 for a 13.04 kW system. These prices reflect complete installations with no upfront incentives since the federal tax credit expired.
Yes, solar is financially worth it in McKinney. A typical 9.72 kW system costs around $27,296 and saves approximately $183 monthly on electricity bills, with a payback period of 10.6 years.
Over 25 years, McKinney homeowners can save around $80,000 while protecting against rising electricity rates. Texas’ property tax exemption means your solar installation won’t increase property taxes, and solar panels typically add 4.1% to home values when selling.
We’re Palmetto Solar, and we’re proud to serve McKinney homeowners with quality solar installations. Since 2020, we’ve completed 3,810 installations across Texas, bringing our national experience to your local community.
We offer flexible financing options to fit different budgets and work with trusted local installation partners who understand McKinney’s specific requirements. Our team handles everything from design to activation, making your transition to solar energy straightforward and stress-free.