Tyler, TX Solar Panels
In This Guide
Solar Power in Tyler
Solar energy is growing fast in Tyler, TX — and for good reason. Texas electricity prices have risen 28% from 2020 to 2024, and homeowners across East Texas are increasingly looking for ways to take back control of their energy bills.
Whether you’re just starting to explore your options or ready to take the next step, this guide from Palmetto walks you through everything you need to know about solar panels for your home — from how they work to what installation looks like right here in Tyler.
How Much Do Solar Panels Cost in Tyler, TX?
Using real installation data from Tyler and surrounding areas — including Lindale, Whitehouse, Bullard, and Longview — this calculator gives you an honest, localized estimate of what solar installation actually costs for homes like yours.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Tyler homeowners can save an average of ~$78,000 over 25 years by switching to solar — with no upfront cost through Palmetto’s LightReach lease starting at $125/month.
- Texas electricity rates have risen 23% since 2021 — solar helps Tyler homeowners lock in more predictable energy costs and reduce dependence on the grid.
- Texas offers a 100% property tax exemption on the added home value from a solar installation, making solar one of the smartest financial moves for Tyler homeowners.
Tyler Electricity Prices
Electricity costs in Tyler, TX have been climbing steadily — and what you pay per kilowatt-hour today looks very different than it did just a few years ago.
Texas electricity rates rose from 12.1 cents per kWh in 2021 to 14.9 cents per kWh in 2024 — an increase of more than 23%. For Tyler homeowners, that steady climb adds up on every monthly bill.
Solar panels can help East Texas homeowners offset the impact of rising electricity rates. By generating your own power from the sun, you rely less on the grid — and less on rates you can’t control.
Over the long term, solar offers something the utility grid doesn’t: greater energy cost predictability. For Tyler, TX homeowners, that stability can make a meaningful difference in household budgeting year after year.
Price of Energy: Texas vs National Average
Tyler Area Utility Providers
In Tyler, TX, the primary electricity provider is Entergy Texas. Based on the most recently available 2023 data, Entergy Texas charges approximately 13.2¢ per kilowatt-hour (kWh) — the standard unit used to measure home electricity use.
That 13.2¢ rate is actually below both the 2023 Texas state average of 14.5¢ per kWh and the national average of 16.0¢ per kWh — likely reflecting Texas’ regional fuel mix and grid infrastructure advantages.
Even so, electricity rates have historically trended upward over time. For Tyler homeowners, solar can offer a more predictable energy cost — helping protect against future rate increases, regardless of where prices start today.
Tyler Utilities Electricity Rates
Texas Solar Incentives
Tyler homeowners have access to several solar incentives in Texas that can help reduce the upfront and long-term cost of going solar.
The most broadly available benefit is Texas’ 100% property tax exemption on the added home value from a solar installation. Depending on your utility provider, additional rebates and programs may also apply to East Texas residents.
State and local incentives still exist. If you lease solar through Palmetto’s LightReach program, Palmetto claims the commercial tax credit and passes those savings to you 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’s service territory 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 Tyler 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 Tyler 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 service territory 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 Tyler 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 Tyler 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 QuoteTyler 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.
Tyler, TX enjoys abundant sunshine and mild winters, making it a strong candidate for solar. Hot summers and long daylight hours help panels produce more energy than you might expect year-round.
Solar Production in Tyler 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 Tyler
We’ve mapped every solar installation across the U.S. — and Tyler, TX is lighting up! Explore the heatmap below to see which neighborhoods in your community have already made the switch to solar. Click any hexagon to see how many of your neighbors have gone solar!
Leasing Solar Panels
In Tyler, TX, Palmetto’s LightReach program offers a solar lease through Entergy Texas. With a lease, you pay a fixed monthly amount — determined by your system’s estimated annual production — rather than purchasing the panels outright. There’s no large upfront investment, and Palmetto owns and maintains the system for you.
Compared to buying solar with cash, leasing removes two significant burdens: the upfront cost and ongoing maintenance responsibility. When you own a system, you’re responsible for repairs, monitoring, and any performance issues over the system’s lifetime. With LightReach, Palmetto handles all of that — including a 90% production guarantee — so you simply pay your monthly lease and enjoy the savings.
Leasing also means you’re not waiting years to recoup an investment. Your savings start from the moment your panels go live. To understand the full difference between leasing and buying, Palmetto’s buy vs. lease guide walks through both options clearly so you can decide what makes the most sense for your home and budget.
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 good sense for most Tyler homeowners. With an average of 5.3 peak sun hours per day, East Texas gets plenty of sunshine to generate meaningful energy. Texas electricity rates have risen over 23% since 2021, and a typical Tyler home can save an estimated ~$78,000 over 25 years by going solar.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — homeowners can go solar with no money down and start saving from day one, with plans starting as low as $125/month for a medium-sized home.
Tyler, TX is served by Entergy Texas, which uses a Net Billing (Export Credit) policy rather than traditional net metering. Instead of a 1:1 credit for energy sent to the grid, Entergy Texas credits exported solar electricity at the avoided cost of power — approximately 3–5 cents per kWh, which adjusts seasonally and annually. This rate is lower than the retail rate you pay for electricity.
Credits are settled monthly, with no annual true-up. Any excess credits on your account are paid out once the credit balance reaches $50. Because exported energy is credited at a lower rate than retail, Tyler homeowners benefit most by using their solar energy directly as it’s produced rather than exporting it to the grid.
Yes, solar panels can increase your home’s value in Tyler, TX. According to a Zillow study, homes with solar panels sell for about 4.1% more than comparable homes without them. For a $300,000 home in Tyler, that’s roughly $12,300 in added value.
Texas also offers a 100% property tax exemption on the added home value from a solar installation — meaning Tyler homeowners can enjoy the increased market value without paying higher property taxes on it.
For Tyler 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 at $89/month for smaller homes and $125/month for a medium-sized home.
If you prefer a cash purchase, a typical Tyler system runs $20,000–$36,000 depending on home size. Note that the federal 30% solar tax credit is no longer available for residential cash purchases following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For most Tyler homeowners, solar is worth it financially — especially with a lease. With Palmetto’s LightReach program, there’s no upfront cost, and your monthly lease payment is typically less than your current electricity bill, meaning you can start saving from day one.
Over time, the financial case grows stronger. Tyler homeowners can save an estimated ~$78,000 over 25 years, and with Texas electricity rates rising more than 23% since 2021, locking in a predictable monthly solar payment offers real long-term value.
Palmetto Solar is a top choice for Tyler, TX homeowners. As a national company with a local focus, we’ve completed 3,810 installs across Texas since 2020 — backed by an experienced install network and some of the best financing options in the industry.
We offer flexible options including our LightReach lease starting at $125/month with no upfront cost, as well as cash purchase options. Tyler residents benefit from our 90% production guarantee, full maintenance coverage, and transparent pricing — so you always know what to expect.
With Palmetto’s LightReach lease, Tyler homeowners pay one simple monthly fee that covers the solar panel system, installation, monitoring, maintenance, and a 90% Production Guarantee — with no upfront cost. For a typical 9.72 kW system in Tyler, the estimated monthly lease payment is approximately $125/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments. Most Tyler homeowners find their lease payment is less than their current electricity bill — so savings begin from day one.