Solar Savings Analysis — Denton, Texas
Electricity Market Structure in Denton
Denton presents a distinctive utility structure relative to other cities in this batch. The City of Denton operates Denton Municipal Electric (DME), a municipally owned utility serving the city's incorporated area. DME is not part of the Oncor service territory.
However, surrounding unincorporated portions of Denton County and nearby communities are served by Oncor. This page addresses the broader Denton area and the Oncor-served portions of Denton County. Homeowners within DME's service boundary should consult DME directly for applicable rate and net metering information.
Denton Municipal Electric, where applicable, operates as an ERCOT-interconnected municipal utility. Oncor-served portions of Denton County also operate within ERCOT. Denton's position in the northern extent of the North Texas grid reflects slightly different transmission corridor characteristics than the southern DFW core, with the ERCOT North Load Zone encompassing this area.
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 — Denton
Denton, Texas receives an estimated annual average solar irradiation in the range of 4.8 to 5.2 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 5.0 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 — Denton
The City of Denton operates Denton Municipal Electric (DME), a municipally owned utility serving the city's incorporated area. DME is not part of the Oncor service territory. However, surrounding unincorporated portions of Denton County and nearby communities are served by Oncor. This page addresses the broader Denton area and the Oncor-served portions of Denton County. Homeowners within DME's service boundary should consult DME directly for applicable rate and net metering information.
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 — Denton (EIA 2024 Reference Year)
For Oncor-served portions of Denton County, SunScore™ references EIA Form 861 data for the 2024 reference year. DME-served Denton city homeowners should note that DME's rate structure and solar policies are determined by the municipal utility and are not directly comparable to deregulated Oncor-territory pricing. GetSunScore flags this distinction as a data accuracy consideration. Rate data used in projections for this page reflects the Oncor-served portion of the broader Denton area.
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 Denton 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 — Denton
Avoided cost modeling for the Oncor-served Denton County area uses the ERCOT North Hub wholesale-proxy baseline. For DME customers, avoided cost and export compensation are governed by DME's own interconnection and billing tariffs, which differ from the deregulated market avoided cost framework. GetSunScore recommends DME-area homeowners review Avoided Cost Explained for general framework context and consult DME directly for applicable rates.
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 — Denton (ITC 30% Reference)
The federal Investment Tax Credit (ITC) is available to qualifying homeowners in Denton 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.
Denton County homeowners in both DME and Oncor service territories are eligible for the federal ITC and the Texas property tax exemption for qualifying solar installations. DME does have an established interconnection process for solar; net metering or comparable billing provisions under DME should be confirmed with the utility directly. This represents a meaningful distinction from the deregulated ERCOT market applicable to Oncor-served areas.
Modeled Projection Context — Denton
Denton's identity as a university city — home to the University of North Texas and Texas Woman's University — produces a residential market with greater demographic diversity and a higher proportion of rental housing than most other Oncor-territory cities in this batch. SunScore™ projections are calibrated for owner-occupied single-family homeowners, consistent with the platform's lead qualification framework. Denton's position at the northern edge of the DFW metropolitan area also places it in a slightly cooler and occasionally wetter subclimate than central Dallas, a factor reflected in the lower end of the irradiation range for this market.
SunScore™ projections for Denton are generated by synthesizing NREL irradiation data for the Denton 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 Denton
Homeowners in Denton 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 Denton 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.
Regional Context & Related Analysis
Neighboring Zones
Technical Node
Frequently Asked Questions — Denton Solar Savings
Qualifying Denton homeowners who install eligible solar systems, whether in the Oncor-served or DME-served portions of the city, may be eligible for the federal Investment Tax Credit at 30%. This non-refundable credit reduces federal income tax liability, with carryforward provisions available. GetSunScore does not provide tax advice; eligibility should be reviewed with a qualified tax professional.
Texas provides a property tax exemption for the assessed value added by a qualifying solar installation, per DSIRE's 2024 reference year records. Denton County homeowners, including those in the city of Denton, may qualify for this exemption. No Texas personal income tax solar credit applies. DME customers should also inquire with Denton Municipal Electric about any utility-specific incentive programs.
For Oncor-served portions of Denton County, SunScore™ references EIA Form 861 residential rate data for the 2024 reference year. Homeowners within the Denton Municipal Electric service territory should be aware that DME rates are set independently and may differ from Oncor-territory deregulated market rates. GetSunScore's rate modeling for this page reflects the Oncor-served portion of the broader area.
The SunScore™ Projection Engine applies NREL irradiation data for the Denton geographic zone, applicable rate baselines, standard residential performance assumptions, and incentive inputs to generate a modeled, non-binding estimated savings range. Projections for Denton account for the slightly broader irradiation range at this northern DFW subregion. Individual results will vary.
Homeowners in the city of Denton served by Denton Municipal Electric operate under a different utility governance framework than those in Oncor-served areas. DME's solar interconnection process, rate structure, and any applicable net metering or buyback provisions are determined by the municipal utility and fall outside the deregulated ERCOT framework. GetSunScore's projections for the Denton area use Oncor-territory data as the reference baseline. DME-area homeowners are encouraged to consult DME directly and review our Net Metering Explained guide for general context.