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
- 7th Most residential solar in the United States
- 122 Households have installed solar panels
- 5.4 Avg peak sun hours per day
- ~$73k Dallas average savings over 25 years
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?
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown:
- System Cost: $25,222
- Price per Watt: $2.83
- Final Cost: $25,222
- Monthly Savings: Average utility bill reduction: $167
- Payback Period: Break-even point: 10.7 years
- 25-Year Savings: $73,241
Get Your Personalized Quote
Based on Palmetto Solar installations in Texas. Current electricity rate: 14.9¢/kWh. Assumes 100% credit of retail rate.
Palmetto Reviews
"I have had nothing but a positive experience with Palmetto... Installation was done in a day and the inspector assured me the crew had done an excellent job. I highly recommend Palmetto!"
- Angela W, Dallas, Texas"Overall great experience with Palmetto right from 1st contact till the panels are activated... the crew came and fixed it asap without need of further follow-ups."
- Ashish Gupta, McKinney, Texas"Palmetto is top notch... did an excellent and quality job... their customer service is prompt, responsive, courteous, and professional."
- Kathy Platt, Cross Roads, Texas
Key Takeaways
- Dallas gets 5.4 peak sun hours per day, giving homeowners plenty of sunshine to generate their own clean, reliable power year-round.
- Texas electricity rates climbed about 23% from 2021 to 2024, so producing your own solar power can help you manage rising energy costs more predictably.
- Texas incentives can lower your solar costs, including a property tax exemption, sales tax exemption, and Oncor rebates worth up to $9,000.
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)
- 3.3 average homes
- 16 hours of central AC
- 5.0 Tesla Model 3 electric vehicles
Winter Production (December)
- 2.1 average homes
- 15 hours of heating system
- 3.2 Tesla Model 3 electric vehicles
Annual Production
- Offset 11 tons of carbon dioxide emissions
- Equal environmental benefit of planting 181 trees
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.