Electricity Rates in Dallas, TX (2026)
The average residential electricity rate in Dallas, TX is approximately 12.0 cents/kWh. This is 8% below the Texas state average of 13.0 cents/kWh, and 25% below the national average of 16.0 cents/kWh. Even with lower rates, Dallas homeowners can benefit from solar through state incentives, net metering, and protection against future rate increases.
Texas State Average
13.0¢
per kWh
Dallas is 8% lower
National Average
16.0¢
per kWh
Dallas is 25% lower
Utility Providers Serving Dallas, TX
The following utility companies operate in Texas and may serve the Dallas area. Rates can vary depending on your specific provider and plan.
| Utility Provider | Avg Rate ($/kWh) | Service Area |
|---|---|---|
| TXU Energy | $0.13/kWh | ERCOT deregulated areas |
| Reliant Energy | $0.12/kWh | ERCOT deregulated areas |
| Green Mountain Energy | $0.14/kWh | ERCOT deregulated areas |
| CPS Energy | $0.11/kWh | San Antonio |
| Austin Energy | $0.11/kWh | Austin |
| Oncor | $0.13/kWh | Dallas-Fort Worth (delivery) |
Electricity Rate History in Dallas, TX
The table below shows the trend of residential electricity rates in the Dallas area over recent years. Understanding rate trends helps you evaluate the long-term value of going solar.
| Year | Avg Rate (cents/kWh) | Year-over-Year Change |
|---|---|---|
| 2020 | 11.0¢ | -- |
| 2021 | 12.0¢ | +9.1% |
| 2022 | 13.0¢ | +8.3% |
| 2023 | 13.0¢ | 0.0% |
| 2024 | 13.0¢ | 0.0% |
| 2025 | 13.0¢ | 0.0% |
Source: U.S. Energy Information Administration (EIA) residential electricity rate data for Texas.
How Dallas Electricity Rates Affect Solar Savings
Your electricity rate is the single most important factor in determining how quickly solar panels pay for themselves. At 12.0 cents/kWh, every kilowatt-hour your solar system generates directly offsets energy you would otherwise purchase from your utility provider.
Although Dallas's electricity rate is currently below the national average, rates in Texas have been trending upward. The typical solar payback period in Texas is approximately 6 years. Installing solar now locks in your energy costs for 25+ years, protecting you from future rate increases while benefiting from available state incentives.
While Texas does not have a statewide net metering mandate, many utility providers in the Dallas area offer buyback or credit programs for excess solar generation. Pairing a solar system with battery storage can help you maximize self-consumption and savings regardless of your utility's specific policies.
With approximately 5.5 peak sun hours per day, Dallas receives excellent solar irradiance. Combined with available incentives and available state incentives, solar panels are a smart financial decision for homeowners in Dallas, TX.
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