Nathan Healy
Certified by Nathan Healy
Updated: July 2025
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar in Tyler

Tyler, Texas homeowners are turning to solar energy as electricity prices increased 28% from 2020 to 2024. With rising energy costs, solar installation offers a practical path to energy independence.

Understanding your options is the first step toward making an informed decision about solar panels for your home. This guide covers everything Tyler residents need to know about solar installation.

TEXAS by the Numbers

6th Most residential solar in the United States
159k Households have installed solar panels
~$8k Texas average solar rebate savings
~$78k Tyler average savings over 25 years
02

Key Takeaways

  • Tyler homeowners can save an average of $78,000 over 25 years by switching to solar energy.
  • Texas offers property tax exemptions for solar installations preventing increased property taxes on your home’s added value.
  • Solar panels in Tyler produce excellent year-round energy with hot summers and mild winters creating ideal conditions.
03

Palmetto Reviews

04

Solar Cost Calculator

Our solar cost calculator uses real installation data from Tyler neighborhoods including Brookshire, Cumberland Park, and Azalea. Get accurate pricing estimates based on actual local installations, not generic estimates.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Texas.
Recommended
System
9.72 kW
Cost Breakdown
Your estimated investment
System Cost
$27296
Federal Tax Credit (30%)
$-8189
Final
Cost
$19107
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$178
Payback Period
Break-even point
7.9 years
25-Year
Savings
$77967
05

Tyler Electricity Prices

Tyler, TX electricity costs have risen steadily, making solar energy an increasingly attractive option for local homeowners.

Texas electricity rates have increased from 12.1 cents per kWh in 2021 to 14.9 cents in 2024, representing a 23% rise over three years.

Solar panels allow Tyler homeowners to generate their own electricity, reducing dependence on the grid and protecting against future rate increases from utility companies.

Over 25 years, solar systems can provide significant savings as electricity rates continue climbing, offering Tyler residents long-term energy cost stability and predictability.

Price of Energy: Texas vs National Average

10¢
20¢
30¢
13.7¢
12.1¢
15.0¢
13.8¢
16.0¢
14.5¢
16.5¢
14.9¢
2021
2022
2023
2024
US Average
Texas

Tyler Area Utility Providers

Tyler residents primarily receive electricity from SWEPCO, which charged an average of 11.9¢ per kWh in 2023, significantly below state and national averages.

SWEPCO’s rates remain lower than Texas’ 14.5¢ average and the national 16.0¢ average due to the region’s energy infrastructure and generation mix.

Even with competitive rates, Tyler homeowners can achieve greater energy cost stability through solar, protecting against future utility rate increases and market volatility.

Tyler Utilities Electricity Rates

SWEPCO
11.90¢
-26%
TX Average
14.50¢
-9%
US Average
16.0¢
06

Texas Solar Incentives

Tyler homeowners can significantly reduce solar installation costs through available solar incentives in Texas and federal programs.

Texas offers property tax exemptions that prevent solar installations from increasing your home’s taxable value, saving hundreds annually on property taxes.

Net metering policies allow Tyler residents to earn credits for excess solar energy sent back to the grid.

$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 system must be primarily designed to produce energy for on-site use at your residence. You’ll need to apply for the exemption with your local county appraisal district using Form 50-123, and the general deadline for filing is before May 1st each year. The exemption is administered locally, so specific requirements and processes may vary by county. This incentive helps make solar more affordable by protecting you from higher property taxes that would otherwise result from your home’s increased value due to the solar installation.

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 exported to the grid, where you receive credits that reduce your monthly electric bill.

The financial benefits depend on your specific utility provider and location. Export credit rates typically range from 3-8 cents per kWh, with some utilities like Shell Energy offering 7 cents per kWh through their buyback program. A few utilities still offer true 1:1 net metering, where excess production offsets consumption on an equal basis. Many programs include monthly fees ranging from $4.95 to $30, and most utilities settle credits monthly rather than annually. Important considerations include that excess credits often expire each December without payout, and some utilities require enrollment with specific retail energy providers (REPs) to participate in solar 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 Quote
07

Tyler 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 hot summers and mild winters create solid solar conditions year-round. Despite occasional clouds, proper system design maximizes energy production effectively.

Solar Production in Tyler by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

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)

[WinterProduction] kWh/day

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

[AnnualProduction] kWh/year

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 Estimate
08

Solar Installations in Tyler

We’ve mapped every solar installation across America to show you something exciting: your Tyler neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.

09

Leasing Solar Panels

For Tyler homeowners, Palmetto offers leasing options that make solar accessible without the upfront costs of purchasing a system. Based on your utility provider, you may qualify for our LightReach lease program, which provides immediate solar savings with no down payment required.

With a solar lease, you pay a fixed monthly amount while we handle all system maintenance, monitoring, and repairs. This eliminates the need for large upfront investments and removes the responsibility of system upkeep from homeowners.

Our LightReach program offers predictable monthly payments and professional maintenance, allowing Tyler residents to enjoy clean energy benefits without the complexities of system ownership or cash purchases.

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 More
10

Frequently Asked Questions

Yes, solar makes strong financial sense in Tyler, TX. Tyler homeowners can save an average of $78,000 over 25 years by switching to solar energy.

Texas offers excellent solar incentives including a 30% federal tax credit and property tax exemptions. With Tyler’s abundant sunshine and rising electricity costs, solar panels provide both immediate savings and long-term energy independence for local residents.

Tyler, TX does not have traditional 1:1 net metering. As a SWEPCO customer, Tyler residents typically receive net billing with export credits rather than full net metering benefits.

Under net billing programs, your solar panels first power your home directly, helping you avoid retail electricity rates. Any excess energy is exported to the grid for credits, usually at wholesale rates of 3-7 cents per kWh, which is lower than the retail rate you pay for electricity.

Yes, solar panels typically increase home value in Tyler, TX. A Zillow study shows solar panels increase home value by 4.1% on average nationwide, which translates to approximately $8,000-$12,000 for typical Tyler homes.

Texas property tax exemptions mean you won’t pay additional taxes on your home’s increased value from solar installation. This makes solar an attractive investment that provides both energy savings and potential resale value for Tyler homeowners.

Solar installation costs in Tyler, TX vary by home size and energy needs. After the 30% federal tax credit, Tyler homeowners typically pay $14,179-$25,057 for a complete solar system.

A medium-sized home (2,000-3,000 sq ft) averages $19,107 after incentives, while smaller homes start around $14,179. These systems typically pay for themselves in 7-8 years through electricity savings, with Tyler homeowners saving approximately $78,000 over 25 years.

Yes, solar is financially worth it for Tyler homeowners. With average savings of $78,000 over 25 years and payback periods of 7-8 years, solar provides strong returns on investment.

Tyler residents benefit from the 30% federal tax credit, Texas property tax exemptions, and protection against rising electricity rates. Even with SWEPCO’s competitive rates, solar offers long-term financial stability and energy independence.

We are Palmetto Solar, a leading solar installer serving Tyler, TX residents. We’ve completed over 3,810 installations across Texas since 2020, bringing proven expertise to East Texas homeowners.

Our national reach combined with local focus allows us to offer competitive financing options and a reliable installation network. We handle everything from system design to permits, installation, and ongoing support for Tyler residents making the switch to clean energy.