In Dallas, Oncor delivers your power but does not sell it, and it does not set your solar credit. See our Oncor solar and interconnection guide for how the wires-and-buyback split works. Dallas is in Texas’s deregulated market, so your retail electric provider decides the solar buyback rate. Texas power runs about 16.4 cents per kWh, and there is no statewide net metering.
- Oncor is the wires company, not your seller. It owns the poles, wires, and smart meters in Dallas and handles interconnection, but you buy electricity from a retail provider you choose (Oncor).
- Your solar buyback is a plan you shop for. Some Texas retail providers offer solar buyback plans that credit exported power; the rate varies by plan and can change at renewal, so verify a current plan before you size a system (DSIRE Texas).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS), so a Dallas homeowner who buys solar in 2026 cannot claim it.
Rooftop solar in Dallas works differently than in most of the country, and the difference is who pays you for the power you send back. Dallas sits in the deregulated ERCOT market, so Oncor delivers your electricity while a separate retail electric provider sells it and decides your solar buyback. There is no statewide net metering forcing a full-retail credit. This page is straight about what solar costs in Dallas in 2026, how the buyback really works here, how Dallas permitting and Oncor interconnection go, and the incentives that are actually real.
What solar costs in Dallas in 2026
A typical Dallas home installs a 7 to 9 kW system, and it offsets power that costs about 16.4 cents per kWh. Texas rates sit near the national average, but Dallas bills are not average, because the air conditioner runs half the year. Residential power in Texas runs about 16.4 cents per kWh (EIA Electric Power Monthly, Table 5.6.A, as of May 2026), a bit below the national average. What makes solar pay in Dallas is volume: long, hot North Texas summers drive high annual kilowatt-hour use, and every kWh your roof makes offsets one you would otherwise buy. One Dallas-specific wrinkle is that Oncor’s delivery charges, the part of your bill that pays for the poles and wires, rose again on June 1, 2026, which pushes the all-in cost of grid power up even when the energy rate holds steady (Oncor tariffs and rate schedules).
According to MySolarFY’s analysis (August 2026), a typical 8 kW rooftop system in Dallas (ZIP 75201) produces about 12,300 kWh a year, worth roughly $2,020 of grid power at the Texas average residential rate of 16.4 cents per kWh. That figure blends NREL’s PVWatts production model with the current EIA rate; your own output depends on your roof’s pitch, orientation, and shading, and how much of that power you use on-site versus export, which matters a lot in a deregulated market where export credits are not guaranteed at retail. See how we calculate these figures.
For the full cost-per-watt and payback breakdown by system size, see our Texas solar cost and payback guide.
| The number | What it is | Source |
|---|---|---|
| About 16.4 cents per kWh | Texas residential electricity rate | EIA, May 2026 |
| About 12,300 kWh per year | Estimated output of an 8 kW Dallas system (ZIP 75201) | NREL PVWatts |
| 100% property-tax exempt | Added home value from solar, under Tax Code 11.27 | Texas Comptroller |
See which solar buyback plans and installers serve your Dallas ZIP code
Buyback rates, retail-provider plans, and installer availability change by ZIP and provider. Enter your ZIP and we will match you with licensed installers who serve your area.
Free to check. About a minute. No credit pull to check.
Submitted securely and used to match you with licensed installers in your area. Some homeowners may qualify for no-up-front lease or PPA options where available.
How solar buyback works in Dallas
Dallas is deregulated, so the company that sets your solar buyback is your retail electric provider, not Oncor and not the state. In the ERCOT market three roles are split apart. Oncor, the transmission and distribution utility, owns the poles and wires, delivers your power, and interconnects your system, but it does not sell electricity and does not set an export credit. Your retail electric provider sells you the plan and decides whether, and how much, it pays for the solar you export. There is no statewide net-metering rule requiring anyone to credit your exports at the retail rate (DSIRE Texas).
The practical result is that a Dallas solar buyback plan is a contract feature you shop for, like a rate. Some retail providers offer plans that credit exported kWh at or near the retail rate, others credit at a lower wholesale-style rate, and the terms can change when you renew, so confirm a current buyback plan exists before you commit. Because the export credit is not guaranteed at retail, the smart design in Dallas leans on using your own solar as you make it, and often a battery, rather than banking on generous export credits. For the mechanics of export crediting in general, see our guide on how net metering credits your solar exports, and for the statewide picture see our Texas solar guide. Fort Worth sits in the same Oncor and ERCOT market, so compare our Fort Worth solar guide if you are shopping across the Metroplex.
| Who | Role in Dallas | Sets your solar buyback? |
|---|---|---|
| Oncor (TDU) | Owns the poles and wires; delivers power and interconnects your system | No |
| Retail electric provider (REP) | Sells your electricity plan; you can switch providers | Yes, through a solar buyback plan you choose |
| The State of Texas | Sets no statewide net-metering mandate for the deregulated market | No |
Note for Dallas, not Austin or San Antonio: Dallas is deregulated, so this retail-provider buyback model is what applies to you. It is different in Austin, where Austin Energy runs its own Value of Solar credit, and in San Antonio, where CPS Energy runs its own program. Those are municipal utilities outside the deregulated market, so do not assume their rules apply in Dallas.
Dallas permitting and Oncor interconnection
Going solar in Dallas takes two approvals: a City of Dallas permit and an Oncor interconnection. Both stand between a signed contract and a working system. The City of Dallas reviews residential rooftop solar through its Development Services department, and a licensed contractor typically files the electrical and building permits through the city’s online plan review system or in person; confirm the current requirements and fees with Dallas Development Services before you file (City of Dallas Development Services). On the utility side, Oncor handles the interconnection agreement and sets or swaps the meter so your system can safely export, separate from whichever retail provider bills you (Oncor). A good installer manages both steps for you, so ask any company how it handles Dallas permitting and Oncor interconnection before you sign.
The Texas incentives that are real for a Dallas home
Texas does not run a statewide solar rebate or a state solar tax credit, so the incentives that matter in Dallas are mostly about what you do not pay. Here is what is real in 2026.
- A 100% property-tax exemption on the added home value from solar, under Texas Tax Code Section 11.27, so your Dallas County appraisal should not rise because of the panels; you file an exemption form to claim it (Texas Comptroller).
- No state income tax in Texas, which simply means there is no state credit or state return to file for solar; the value is in the bill offset, not a state deduction.
- A local retail-provider solar buyback plan, where offered, which credits the power you export. This is not a state incentive and the rate is not guaranteed, so treat it as a plan feature to verify, not a fixed savings number (DSIRE Texas).
Because these are statewide rules that change over time, we keep the full detail on our Texas solar guide rather than repeating it on every city page.
What the federal tax-credit change means for Dallas
The 30% federal homeowner credit ended after December 31, 2025, and Texas has no state credit to replace it. That change hits Dallas buyers the same way it hits the rest of the country. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Dallas homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS). You will still see installer pages and ads implying the 30% credit is available; for a 2026 Dallas install it is not. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner (IRS Clean Electricity Investment Credit). For the full timeline, see what the federal solar tax-credit change means in 2026.
Paying for solar in Dallas: cash, loan, lease, or PPA
There is no single right way to pay for solar; the best fit depends on whether you want to own the system or avoid an up-front cost. You may also see ads for “free solar panels” in Dallas, and it is worth being clear that solar is not free; those are almost always lease or PPA offers, a long-term contract with monthly payments rather than a giveaway. A solar loan is a popular way to own the system with little up front, while a lease or PPA can mean no up-front cost. To weigh the long-run numbers, see whether solar panels are worth it.
| Path | Up-front cost | Who owns the system | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You | You want the fastest payback and the most lifetime savings |
| Solar loan | Little to none, financed | You | You want ownership without paying cash up front |
| Lease or PPA | No up-front cost where eligible | The third-party owner | You prefer no up-front cost and a simpler, fixed monthly bill |
How to choose a solar installer in Dallas
Search “dallas solar panels” and most of the first page is national review sites and directories rather than the companies doing the work, so it pays to screen a company directly. Dallas has an active market of licensed installers, from local North Texas companies to national lease and PPA brands, which means real competition on price and service. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A licensed Texas electrician on the job and proper City of Dallas permitting.
- A clear workmanship and equipment warranty in writing.
- Real experience with Oncor interconnection and with matching you to a retail-provider solar buyback plan, so your export credit is set up correctly.
- A written production estimate and a transparent quote that models your actual self-use versus export, not a generic savings figure. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Frequently asked questions
Is solar worth it in Dallas in 2026?
For many owner-occupied Dallas homes with decent sun and high summer bills, yes, but the math is different than in a net-metering state. Texas residential power runs about 16.4 cents per kWh (EIA, as of May 2026), and a typical 8 kW Dallas system produces about 12,300 kWh a year, worth roughly $2,020 at that rate by MySolarFY’s August 2026 analysis. Because Texas has no statewide net metering, your savings lean on using your own solar as you make it and on whatever solar buyback plan your retail provider offers. Savings depend on your roof, usage, and plan, and they are not guaranteed.
Does Oncor pay me for solar in Dallas?
No. Oncor is the transmission and distribution utility that delivers your power and interconnects your system, but it does not sell electricity and does not set a solar credit (Oncor). In Dallas your solar buyback comes from your retail electric provider, through a solar buyback plan you choose. The rate varies by plan and can change at renewal, so confirm a current plan before you size a system. There is no statewide net-metering rule in the deregulated Texas market requiring a full-retail export credit.
Does Texas have net metering?
Not statewide. In the deregulated market that covers Dallas, there is no state rule requiring your provider to credit exported solar at the retail rate; instead, individual retail electric providers offer their own solar buyback plans, and the credit varies by plan (DSIRE Texas). Municipal utilities outside deregulation run their own programs, such as Austin Energy’s Value of Solar and CPS Energy’s program in San Antonio, but those do not apply in Dallas. The takeaway for Dallas is to treat export credit as a plan feature you verify, not a guaranteed retail rate.
Is the 30% federal solar tax credit going away in 2026?
It already ended. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Dallas homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS). You will see pages that still imply the credit is available; for a 2026 install it is not. A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Texas never had a state solar tax credit to replace it.
How do Dallas solar permits work?
The City of Dallas reviews residential rooftop solar through its Development Services department, and a licensed contractor typically files the electrical and building permits through the city’s plan review process; confirm current requirements and fees with Dallas Development Services before you file (City of Dallas Development Services). Separately, Oncor handles the interconnection agreement and the meter change so your system can export safely. A good installer manages both the city permit and the Oncor interconnection for you, so ask how each is handled before you sign.
What does “no up-front cost” actually mean?
It refers to lease and PPA financing, where an eligible homeowner can have no out-of-pocket cost at installation because a third party owns the system and you pay a monthly amount instead. It is not free solar; it is a long-term agreement, usually 20 to 25 years, that may include an annual price escalator, and total payments can exceed a cash purchase. On a lease or PPA the company that owns the panels keeps ownership and any tax benefits. It can still fit if you want predictable payments and no up-front spend, but read the term, the escalator, and who keeps the incentives before you sign.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL PVWatts, Oncor, DSIRE Texas, Texas Comptroller, City of Dallas, and IRS sources as of August 2026. Texas is a deregulated electricity market, so solar buyback rates are set by individual retail electric providers and change at renewal; confirm a current buyback plan, your Oncor interconnection terms, and Dallas permitting before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the system owner keeps ownership and any tax benefits. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. In Texas there is no statewide net metering; solar buyback is set by your retail electric provider and is not guaranteed. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.