Solar Savings Analysis — Dallas, Texas

Electricity Market Structure in Dallas

Dallas sits at the core of the Oncor Electric Delivery service territory, one of the largest transmission and distribution utilities in Texas. As a deregulated market participant within ERCOT, Dallas residents select retail electricity providers independently from delivery infrastructure.

Dallas is served entirely within the ERCOT interconnection, operating as an energy-only market without capacity payments. The city's urban density and commercial load profile contribute to elevated distribution system congestion during peak summer demand periods.

For additional context on Oncor Electric Delivery's role as the transmission and distribution operator in this market, see the Oncor Electric Delivery utility authority node.

Solar Irradiation Context — Dallas

Dallas, Texas receives an estimated annual average solar irradiation in the range of 4.9 to 5.3 kWh per square meter per day, based on NREL National Solar Radiation Database reference data for the North Texas geographic zone. This translates to approximately 5.1 peak sun hours per day on an annualized basis, representing a moderately high solar resource consistent with the broader Texas solar production environment.

City-level irradiation data is applied in SunScore™ modeling as a primary energy yield input. No ZIP code-level or address-level irradiation claims are made on this page. Actual solar output at any specific property will vary based on roof pitch, azimuth, shading obstructions, and system configuration.

Utility Territory & Delivery Structure — Dallas

As a deregulated market participant within ERCOT, Dallas residents select retail electricity providers independently from delivery infrastructure.

Oncor Electric Delivery does not set retail electricity prices in the deregulated Texas market. Retail rates are established by competing retail electricity providers (REPs) operating under Public Utility Commission of Texas (PUCT) oversight. The delivery charge component of a retail electricity bill — covering Oncor's transmission and distribution infrastructure — is regulated separately and appears as a line item in monthly billing. Solar savings projections on this platform address the energy supply component of the retail bill, not the regulated delivery charge component. Methodology detail is available at SunScore™ Projection Methodology.

Retail Electricity Baseline — Dallas (EIA 2024 Reference Year)

Residential electricity rates in the Dallas area, based on EIA Form 861 data for the 2024 reference year, reflect a market-competitive environment typical of deregulated Texas service territories. Retail rates in the broader Dallas metropolitan area have historically ranged between approximately 11 and 16 cents per kWh depending on contract terms, market conditions, and plan structure.

All rate references on this page are derived from publicly available EIA Form 861 data for the 2024 reference year and represent historical average figures. They are not real-time rates, guaranteed future rates, or provider-specific quotes. Actual retail electricity prices in Dallas vary by retail electricity provider, contract type, and enrollment date. Consumers seeking current rate information should consult the Power to Choose portal maintained by the Public Utility Commission of Texas.

Avoided Cost & Export Compensation Context — Dallas

In the ERCOT market structure serving Dallas, avoided cost is modeled as a wholesale-proxy figure derived from marginal generation cost data. Wholesale locational marginal prices in the North Hub, which encompasses Dallas, are consistently and substantially lower than residential retail rates. This differential is a core input to SunScore™ modeled projections.

In the ERCOT market structure, the avoided cost concept is central to understanding the economic dynamics of solar energy for Texas homeowners. Solar energy consumed on-site avoids the retail rate, while energy exported to the grid is compensated at or near wholesale-proxy levels — a materially lower value. SunScore™ projections distinguish between self-consumption and export scenarios in the modeled output. A detailed explanation of the avoided cost framework used in this platform is available at Avoided Cost Explained.

Federal Incentive Layer — Dallas (ITC 30% Reference)

The federal Investment Tax Credit (ITC) is available to qualifying homeowners in Dallas who install eligible solar photovoltaic systems. As of the 2024 reference year, the ITC is structured at 30% of eligible system cost under the Inflation Reduction Act (IRA). This credit is non-refundable, meaning it reduces federal income tax liability but does not generate a direct cash payment if the credit amount exceeds tax liability in the installation year. Unused credit amounts may carry forward to subsequent tax years subject to applicable IRS rules.

The federal ITC is incorporated as an incentive layer input in SunScore™ projected payback and return scenarios. GetSunScore does not provide tax advice. Homeowners should consult a qualified tax professional to assess personal eligibility and ITC application. A detailed explanation of the federal solar tax credit as it applies to Texas homeowners is available at Federal Solar Tax Credit Explained.

Texas does not mandate retail net metering at the state level. Dallas-area homeowners evaluating solar export compensation must review individual retail electricity provider contracts for applicable buyback or bill credit terms. The Texas property tax exemption for solar energy equipment, as referenced in DSIRE's publicly available incentive database, may apply to qualifying installations in Dallas County.

Modeled Projection Context — Dallas

Dallas represents the largest population center within the Oncor service territory. The urban heat island effect present across much of central Dallas can modestly elevate cooling load, a factor reflected in above-average residential electricity consumption relative to smaller Oncor territory cities. SunScore™ modeling for Dallas accounts for this consumption profile when generating estimated offset scenarios.

SunScore™ projections for Dallas are generated by synthesizing NREL irradiation data for the Dallas geographic zone, EIA Form 861 rate baselines for the 2024 reference year, publicly available residential system performance assumptions, and applicable federal and state incentive layer inputs. The output is a modeled estimated savings range expressed as an annual and cumulative scenario over a defined projection horizon.

All SunScore™ projections are non-binding modeled scenarios. They do not constitute financial advice, a solar installation quote, or a guaranteed savings figure. Results will vary based on actual system performance, roof characteristics, shading, consumption patterns, and future retail rate changes. Full methodology documentation, including data sources and modeling assumptions, is available at SunScore™ Projection Methodology, GetSunScore Data Sources, and Modeling Assumptions.

Solar Installation Pathway in Dallas

Homeowners in Dallas who have reviewed GetSunScore's modeled solar savings projection and wish to proceed with installation evaluation may do so through the standard residential solar qualification and contractor evaluation process.

Homeowners evaluating solar installation in Dallas typically proceed through structured qualification and installer evaluation stages, beginning with a property assessment to confirm roof suitability, structural capacity, shading conditions, and utility interconnection eligibility under Oncor Electric Delivery's interconnection standards.

GetSunScore does not install solar systems, endorse specific solar contractors, or recommend providers. Qualified homeowners seeking installation evaluation may consult the installer directory referenced in GetSunScore's partner network documentation.