Solar resource
Your solar production in Dallas
5.38 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Austin, TX. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
Oncor Electric Delivery service area (ERCOT deregulated) electricity rate
$0.127/kWh residential
- Utility
- Oncor Electric Delivery service area (ERCOT deregulated)
- Residential rate
- $0.127/kWh (blended)
Dallas is in Texas's deregulated electricity market (ERCOT) within Oncor Electric Delivery's wires territory. Retail rates are set by your chosen Retail Electric Provider (REP) — providers such as TXU Energy, Gexa Energy, Constellation, and Reliant serve the area. The $0.127/kWh figure reflects a typical fixed-rate residential plan in the Oncor territory. Competitive rates range from $0.10 to $0.16/kWh depending on plan. There is no utility-wide net metering mandate — each REP sets its own solar buyback rate, typically $0.03–$0.07/kWh for exported energy.
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Incentives
Available solar incentives in Dallas, TX
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| Texas Solar Property Tax Exemption | Exemption | 100% of added home value from solar | State |
| REP Solar Buyback Programs | Net Metering | Varies by provider — typically $0.03–$0.07/kWh for exported energy | Utility |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $17100
- Federal ITC (30%)
- −$5130
- Net system cost
- $11,970
- Installed cost per watt
- $2.85/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — Texas median installed cost for systems 3–10 kW
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $1,143
- Simple payback period
- 10.5 years
- 25-year net savings
- $16605
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Dallas
- Your panels capture sunlight Solar panels convert sunlight into DC electricity. Dallas averages 5.38 peak sun hours per day — excellent production year-round driven by North Texas's sunny climate. Dallas sees fewer overcast days than Houston and benefits from lower humidity, making it one of the best solar cities in Texas.
- An inverter converts DC to AC A solar inverter converts the DC power from your panels into the AC electricity your home uses. Modern string inverters and microinverters achieve 96–99% conversion efficiency. Dallas's warm climate means inverters operate well year-round, with peak production in the long summer months.
- You use solar power instead of buying from your REP Every kilowatt-hour (kWh) your system produces during daylight reduces what you buy from your Retail Electric Provider at approximately $0.127/kWh. A 6 kW system produces about 9,000 kWh/year in Dallas — enough to significantly offset a typical Texas home's electricity usage, particularly during the high-AC summer months.
- Excess power flows back to the grid via your REP When your panels produce more than your home uses — common on sunny spring days and early summer mornings before peak heat — excess electricity flows to the ERCOT grid. Your Retail Electric Provider (REP) sets the buyback rate, typically $0.03–$0.07/kWh. Selecting a REP with a competitive solar buyback plan before installation maximizes your return.
- You claim the federal tax credit In the tax year your system is installed, you claim a 30% federal tax credit on the full installed cost. On a $17,100 system, that's $5,130 off your federal income taxes — reducing your net cost to $11,970. Texas has no state income tax, so there is no additional state solar tax credit, but the property tax exemption (§11.27) saves hundreds per year.
- Your savings grow over time As retail electricity rates rise (historically ~2.5%/year in Texas), your solar savings increase while your system cost stays fixed. Over 25 years, a 6 kW system in Dallas nets roughly $16,600 after repaying the installation cost. Dallas's strong solar resource and competitive installer market make it one of the most favorable solar economics in Texas.
FAQ
Common solar savings questions for Dallas, TX
How much can I save with solar panels in Dallas, TX?
A 6 kW system — typical for a Dallas home — produces about 9,000 kWh/year and saves approximately $1,143/year at a typical retail rate of $0.127/kWh. After the 30% federal tax credit, the net system cost is around $11,970, with a payback period of about 10–11 years and 25-year net savings near $16,600. Dallas's high summer AC loads and excellent solar resource make solar particularly valuable from April through September.
How does solar work in Dallas's deregulated electricity market?
Dallas is served by Oncor Electric Delivery for electricity delivery (wires and poles), but you choose your own Retail Electric Provider (REP) for generation — providers include TXU Energy, Gexa Energy, Constellation, Reliant, and others. REPs set their own solar buyback rates for excess energy you export to the grid, typically $0.03–$0.07/kWh. Shopping for a REP with a competitive solar plan before installation is an important step to maximizing your solar ROI in Texas.
Is there a state solar incentive in Texas for Dallas residents?
Yes. Texas Tax Code §11.27 exempts 100% of the appraised value added to your home by a solar installation from property taxes. A typical 6 kW installation in Dallas adds $15,000–$20,000 to home value, avoiding $300–$500/year in property taxes at Dallas County rates. Texas has no state income tax, so there is no state-level solar tax credit — the federal 30% ITC is the primary financial incentive.
How much does a solar system cost in Dallas?
A 6 kW system in Dallas costs approximately $17,100 before incentives ($2.85/watt installed, per Lawrence Berkeley Lab 2024 data for Texas). After the 30% federal Investment Tax Credit ($5,130), the net cost is about $11,970. Dallas has a large, competitive solar installer market. Getting 3–4 quotes from local installers typically yields the best pricing.
Does Dallas get enough sun for solar panels to be worth it?
Yes — Dallas is an excellent solar city. Dallas averages 5.38 peak sun hours per day, better than Austin (5.07), Houston (4.82), and well above the national average (~4.5). North Texas's lower humidity and fewer overcast days compared to the Gulf Coast give Dallas higher annual solar production per panel. The combination of strong solar resource, high summer AC bills, and the federal tax credit makes Dallas one of the best solar markets in Texas.
How does Dallas compare to other Texas cities for solar?
Dallas gets more sun than Houston or Austin but less than far-west Texas cities like El Paso or Midland. Dallas averages 5.38 peak sun hours/day vs. Houston's 4.82 and Austin's 5.07 — that means roughly 11% more annual production per kW installed compared to Houston. Dallas also has a larger average monthly electric bill (more heating and cooling days), making more kWh to offset. Solar economics in Dallas are strong.
How many solar panels do I need for my Dallas home?
A typical Dallas home using 1,100–1,400 kWh/month (driven by summer AC and winter heating) needs a 6–9 kW system. A 6 kW system (about 14–16 panels at 390–430 W each) covers a significant share of typical consumption. Use the calculator above to enter your monthly bill and see a system size estimate tailored to your usage.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://openei.org/apps/USURDB/
- https://www.eia.gov/electricity/data/browser/
- https://statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
- https://www.puc.texas.gov/industry/electric/retail/netmetering.aspx
- https://www.oncor.com/
- https://www.ercot.com/
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-13.