Tyler, TX Solar Panels
In This Guide
Solar Power in Tyler
Tyler, TX homeowners are finding that solar energy offers a practical solution for lower energy costs. With Texas electricity prices increasing 28% from 2020 to 2024, more residents are exploring how solar panels can help reduce monthly utility bills.
This guide covers local climate advantages, system costs, and how to choose the right setup for your Tyler home.
How Much Do Solar Panels Cost in Tyler, TX?
Our calculator uses real installation data from Tyler homes—including neighborhoods like South Tyler, Hollytree, and Cumberland Park—to show you what solar actually costs in your area. Get a personalized estimate based on local installations, not national averages.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Tyler receives 5.3 peak sun hours daily making it an excellent location for solar energy production throughout the year.
- A typical 10 kW system costs around $27,296 and can save Tyler homeowners approximately $78,000 over 25 years.
- Texas offers a property tax exemption preventing solar panel installations from increasing your property taxes, adding to long-term savings.
Tyler Electricity Prices
Understanding electricity costs helps Tyler homeowners make informed energy decisions. Let’s look at how rates have changed in recent years.
Texas electricity rates have climbed from 12.1 cents per kilowatt-hour in 2021 to 14.9 cents in 2024. That’s a 23% increase in just three years, adding up for Tyler families.
Solar panels generate electricity at a fixed cost. Once installed, your system produces power without the price fluctuations that affect traditional utility bills, helping stabilize your monthly energy expenses.
Over 25 years, this stability adds up significantly. While utility rates continue rising, solar panels lock in predictable energy costs, giving Tyler homeowners long-term budget certainty and protection from future increases.
Price of Energy: Texas vs National Average
Tyler Area Utility Providers
Understanding local electricity rates helps Tyler homeowners make informed energy decisions. Southwestern Electric Power Company (SWEPCO) serves the Tyler area with rates averaging 11.90¢ per kWh in 2023, notably below both the Texas average of 14.50¢ and the national average of 16.0¢.
Tyler’s lower electricity costs reflect Texas’ diverse energy mix and SWEPCO’s access to regional power generation. The state’s competitive energy market and abundant natural resources help keep rates more affordable compared to many other regions nationwide.
Even with competitive rates, Tyler homeowners can benefit from solar energy’s long-term stability. Solar panels provide protection against future rate increases while reducing dependence on the grid, making them a practical consideration for managing household energy costs over time.
Tyler Utilities Electricity Rates
Texas Solar Incentives
Tyler homeowners can reduce solar installation costs through state and local programs. These solar incentives in Texas help make the switch to clean energy more affordable.
Texas offers a property tax exemption that prevents your home’s value increase from solar panels from raising your property taxes. Additionally, most utilities in the Tyler area provide net metering, allowing you to receive credit for excess energy your system generates.
These programs change periodically, so research current offerings carefully. Understanding available incentives helps you make an informed decision about solar for your home.
| 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 homeowners who install solar or wind-powered energy devices on their property. This exemption prevents your local appraisal district from adding the value of your solar energy system to your home’s assessed value for property tax purposes. Without this exemption, installing solar panels could increase your home’s appraised value and result in higher property taxes. With the exemption, you only pay property taxes based on your home’s value without the solar system included.
To qualify for this exemption, you must own the solar energy system installed on your property (leased systems don’t qualify), and the system must be used to power your home or business. 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 those levied by your city, county, and school district, providing ongoing savings for as long as you own the system.
Net metering and net billing policies in Texas vary significantly depending on your utility provider or electric cooperative. Unlike traditional net metering where excess solar energy is credited at full retail rates, most Texas utilities now use net billing programs that credit exported solar energy at lower wholesale rates, typically ranging from 3 to 8 cents per kilowatt-hour. In deregulated areas served by transmission and distribution utilities (TDUs) like Oncor, CenterPoint, and AEP Texas, you’ll need to enroll with a Retail Energy Provider (REP) like Shell Energy to receive export credits, currently at 7 cents per kWh as of April 2024.
The financial benefit depends on your specific utility. Some cooperatives like Grayson Collin Electric Cooperative offer true 1:1 net metering where credits roll over indefinitely, while others like CPS Energy in San Antonio and Austin Energy provide monthly credits that expire each December. Most programs settle monthly, meaning any excess credits beyond what you consume are valued at the lower export rate rather than your full retail electricity rate. Several utilities also charge additional monthly fees for solar customers, ranging from $10 to $30 per month, which can reduce your overall savings. Solar energy you use immediately in your home always avoids the full retail rate, making self-consumption the most valuable use of your solar production.
Eligibility typically requires being a residential customer of the participating utility and having an approved interconnection agreement for your solar system. There are no statewide deadlines, though individual utility programs can change their rates and terms periodically. It’s important to understand your specific utility’s policy before installing solar, as the export credit rate and monthly fees significantly impact your return on investment. Working with your solar installer to size your system appropriately for your consumption patterns will help maximize the value you receive from these programs.
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’s mix of sunny summers and mild winters creates solid solar potential year-round. While occasional clouds and shorter winter days affect output, properly designed systems consistently generate clean energy.
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 United States to help you explore the growing solar community in Tyler. Click any hexagon to see how many neighbors in that area have made the switch to clean energy!
Leasing Solar Panels
Tyler homeowners have flexible options for going solar through Palmetto’s LightReach program. Depending on your utility provider, you may qualify for either a solar lease or Power Purchase Agreement (PPA), allowing you to enjoy solar energy without the upfront investment of purchasing a system.
With a solar lease or PPA, Palmetto owns and maintains your solar panels while you benefit from the clean energy they produce. This means no maintenance responsibilities, no repair costs, and predictable monthly payments. Unlike purchasing a system outright, you avoid the burden of equipment ownership while still reducing your electricity bills from day one.
The key advantage is simplicity: Palmetto handles installation, monitoring, maintenance, and any necessary repairs throughout your agreement. You get immediate access to solar savings without managing the system yourself or worrying about performance issues over time.
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 sense in Tyler. With 5.3 peak sun hours daily and electricity rates that have increased 23% since 2021, solar panels offer strong financial benefits for local homeowners.
A typical 10 kW system costs around $27,296 and can save approximately $78,000 over 25 years. Texas’ property tax exemption and available net metering programs add to the value, making Tyler an excellent location for solar energy.
Tyler doesn’t have traditional net metering. The area is served by Southwestern Electric Power Company (SWEPCO), which doesn’t currently offer a net metering or net billing program for residential solar customers.
Without net metering, excess solar energy your system produces won’t earn credits on your utility bill. However, solar still makes financial sense in Tyler due to competitive electricity rates and the ability to offset daytime energy consumption. Your solar panels reduce the amount of electricity you purchase from the grid, providing savings through direct usage rather than export credits.
Yes, solar panels typically increase home value in Tyler. Research shows that homes with solar energy systems sell for approximately 4.1% more than comparable homes without solar installations.
For a median-priced Tyler home, this translates to thousands of dollars in added value. Additionally, Texas’ property tax exemption means your solar panels won’t increase your property taxes, allowing you to enjoy the full value boost without additional tax burden when you sell.
Solar panel costs in Tyler vary by home size. A typical 10 kW system costs around $27,296, with prices ranging from $20,256 for smaller homes to $35,795 for larger properties.
These prices reflect complete installations including equipment, labor, and permits. Tyler’s competitive electricity rates and Texas’ property tax exemption help offset the initial investment through long-term savings.
Yes, solar is financially worth it in Tyler. A typical 10 kW system costs around $27,296 and can save approximately $78,000 over 25 years, with a payback period of about 10.8 years.
Tyler receives 5.3 peak sun hours daily, making it excellent for solar production. With electricity rates increasing 23% since 2021, solar panels provide protection against future rate increases while reducing your monthly utility bills from day one.
At Palmetto Solar, we’re proud to serve Tyler homeowners with quality solar installations. As a national company with local focus, we’ve completed 3,810 installations across Texas since 2020.
We offer competitive financing options and work with experienced local installation partners to ensure your system is installed correctly. Our team handles everything from design through activation, making the solar process straightforward for Tyler residents.