Is solar worth it in Dallas in 2026?

A roof in Dallas produces about 1,513 kWh a year per kW of panels. For a home with a $150 monthly bill, a 7.4 kW system costs about $29,631 at Texas's median price and pays for itself in roughly 28.4 years, with no federal tax credit. That is 5% more sun than Houston, the city on our Texas page.

Data checked 2026-10-21 · Estimates, not a quote

Solar output in Dallas

1,513kWh per kW a year

Source: PVGIS, NSRDB data

Texas residential electricity price

16.1¢per kWh

Source: EIA, 2026 year to date

Median installed cost in Texas, 2025

$4.00per watt

Source: Berkeley Lab

Calculator · 2026 data, no federal tax credit

How long would solar take to pay for itself?

StateAverage monthly electric bill$Installed cost per watt (state median; use your quote)$Value of solar power vs. retail rate (why)%

Simple payback

28.4 years

System size: 7.4 kW
Installed cost: $29,631
Savings, year one: $1,044
Net over 25 years: $-5,039

Sized to cover your yearly use at today's price. Panels lose 0.5% a year; prices held flat. Method

How Dallas homes get paid for solar

Export rules are set at the state and utility level, not by the city. Dallas is under Texas's rules set by each utility: Texas has no statewide net metering rule for homes; export pay is set by your retail electric provider's buyback plan or by your city utility (Austin Energy, CPS Energy). The full rules, incentives and sources are on theTexas page.

Dallas: your utility, incentives and permits

Main utility: Oncor (wires and meters) plus the retail electric provider you choose. Checked 2026-10-21 against the sources below.

Dallas is in Texas’s competitive market, so two companies are involved. Oncor owns the wires and the meter and is on its tariff list of cities served. The power itself, and what you are paid for the power you export, come from the retail electric provider (REP) you choose.

What your provider pays for exported power

Texas has no statewide net metering. Under the Texas Utilities Code, a home with solar sells its surplus to the REP that serves it, at a value agreed between the two. In practice that means the buyback terms are part of your electricity plan, and they differ from one provider to the next. Check them before you sign a plan, not after the panels are up. Oncor’s part is the hardware: it requires an advanced meter to measure the surplus you send to the grid.

Incentives in 2026

Oncor’s residential solar program. In 2026 the residential incentive runs through Oncor’s Photovoltaic Standard Offer Program, with a budget of $1,774,000. It is paid to the registered installer in one installment, never more than 50% of the total project cost, and it ends on November 30, 2026 or when the money runs out, whichever comes first. Ask your installer whether it still has funds.
No property tax on the added value. Texas Tax Code section 11.27 exempts the value that a solar energy device adds to your home. Apply to your county appraisal district with Form 50-123, no later than April 30 of the year you want the exemption.

Permits and connection

In Dallas only a licensed professional registered with the city can pull the solar permit, so your installer files it through the DallasNow portal. A flush-mounted or tilt-up rooftop system needs both a building permit and an electrical permit, but not separate applications. The city works out the final fee when the application is submitted, and the system must pass its inspections before it can be switched on and connected.

For the grid connection, Oncor requires its Application for Interconnection and Parallel Operation of Distributed Generation, and the customer signs the application and the interconnection agreement. Oncor’s 2026 tariff charges no pre-interconnection study fee for an exporting system of up to 10 kW with pre-certified equipment outside network areas; otherwise the fee at that size is $166.20. The Texas state page has the statewide rules.

Sources

Why the city matters

Two things change from one city to another in the same state: the sun, which sets how many panels you need, and the utility, which sets what exported power is worth. Dallas gets 1,513 kWh per kW a year on a south-facing roof at a 20° tilt, so covering a year of use for a $150 bill at 16.1¢ takes about 7.4 kW, roughly 19 panels of 400 W. Electricity prices in the calculator are the Texas residential average; your utility's rate can be higher or lower, so put your own bill in.

Other Texas cities: San Antonio, Austin.

Method: how we calculate payback. Compare all states in theranking or size a system with the panel calculator.