Dallas, TX Solar Installation: 2026 Costs, Incentives & Savings

Solar Power in Dallas

With the sun shining bright over Dallas nearly year-round, it’s no surprise that Texas ranks 7th in the nation for residential solar installations. Many Dallas homeowners are discovering that solar is a practical way to take control of their energy and rely less on the grid.

That interest makes sense, especially as electricity prices have climbed 28% from 2020 to 2024. Curious how solar works for your home? Our guide to home solar panels is a great place to start.

TEXAS by the Numbers

How Much Do Solar Panels Cost in Dallas, TX?

See real solar costs for your Dallas home, based on our actual installations across the area—from Plano and Frisco to Irving, Garland, and Richardson. This calculator uses firsthand local data, not estimates, so you get a clear, accurate picture of what solar could look like where you live.

Recommended System: 8.91 kW
Your Monthly Payment: Estimated monthly cost with LightReach - $114/mo
Why Lease Solar?

Cost Breakdown:

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Based on Palmetto Solar installations in Texas. Current electricity rate: 14.9¢/kWh. Assumes 100% credit of retail rate.

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Key Takeaways

Dallas Electricity Prices

Texas electricity rates rose from 12.1 cents per kWh in 2021 to 14.9 cents in 2024, a roughly 23% increase. Solar offers Dallas homeowners a way to generate their own power and depend less on the grid. As utility rates rise, producing electricity at home can help you manage costs more predictably.

Price of Energy: Texas vs National Average

Year Texas US Average
2021 12.1¢ 13.7¢
2022 14.5¢ 13.8¢
2023 14.9¢ 16.0¢
2024 16.0¢

Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861

Dallas Area Utility Providers

In Dallas, electricity rates vary by provider. Based on 2023 data, CoServ Electric charged about 12.8¢ per kWh, while Tri-County Electric Cooperative averaged 14.1¢ per kWh.

Dallas Utilities Electricity Rates

Provider Rate
CoServ Electric 12.80¢
Tri-County Electric Cooperative 14.10¢
TX Average 14.50¢
US Average 16.0¢

Source: US Energy Information Administration, 2023, Form 861, Table 6

Texas Solar Incentives

Dallas homeowners can offset the cost of going solar with several solar incentives in Texas, from statewide tax exemptions to local utility rebates.

Incentive Type Description Source
Texas Property Tax Exemption for Solar Energy Systems Property Tax Exemption 100% property tax exemption on the home value from a solar energy system installation. Learn More
Texas Sales Tax Exemption for Solar Equipment Sales Tax Exemption Solar energy equipment purchased in Texas is exempt from state sales tax. Learn More
Oncor Residential Solar + Battery Storage Rebate Program Rebate Up to $9,000 for residential customers who install a qualifying solar PV system paired with battery storage. Learn More
Texas Solar Buyback & Net Billing Programs Net Metering Solar homeowners in deregulated areas can choose a Retail Electric Provider offering a solar buyback plan. Learn More
Tesla Virtual Power Plant (VPP) Program Rebate $10/month bill credit for Powerwall owners enrolled in the program.

Dallas Solar Irradiance

Dallas enjoys abundant sunshine year-round, with solar panel production varying throughout the year.

Solar Production in Dallas by Month

Month Daylight Hours Energy Production (kWh/day)
July At least 10 50
December About 7 31.9

What Can Your Solar System Power?

Summer Production (July)

Winter Production (December)

Annual Production

Solar Panel Systems in Dallas

We’ve mapped solar installations across the United States, highlighting neighborhoods.

Leasing Solar Panels

With a solar Power Purchase Agreement (PPA) through Palmetto’s LightReach program, you can save money without any upfront investment or maintenance worries.

Frequently Asked Questions

Does Dallas, TX have net metering?

Texas does not require traditional net metering; homes serve by Oncor Energy use a net billing "buyback" approach.

Do solar panels increase your home value in Dallas, TX?

Yes, owning solar panels can increase your home's value by about 4.1%. Texas also offers a 100% property tax exemption on that added value.

How much does it cost to go solar in Dallas, TX?

With Palmetto’s LightReach lease, the cost can be as little as around $114/month for a medium home.

Do solar panels work in Dallas, TX’s climate?

Yes. Dallas averages about 5.4 peak sun hours per day. Solar panels still generate power during cloudiness and seasonal variations.

Is solar worth it financially?

For many Dallas homeowners, solar can be worth it financially, especially with Texas electricity rates climbing about 23% from 2021 to 2024.