Is going solar in Allen still a smart financial move in 2026? With high electricity rates and plenty of sunshine, the potential is strong. However, with the end of the main federal tax credit, understanding the local costs, Texas-specific incentives, and the rules of the deregulated electricity market is crucial to making an informed decision.
Run your scenario: the calculator uses this city’s utility and tariff data.
Open calculatorBenchmark Cost Analysis
What Do Solar Panels Cost in Allen? (2026 Estimates)
For a typical home in Allen, a solar system is sized to offset the household's average energy consumption. Based on local modeling, here are the estimated costs for two common setups:
- 9.6 kW Solar-Only System: The estimated upfront cost is approximately $24,000. This system is designed to significantly reduce reliance on grid power during daylight hours.
- 9.6 kW Solar System with 10 kWh Battery: The estimated cost for this combined system is around $39,000. The battery adds energy independence and can improve the overall financial payback by maximizing the use of your own solar power.
Note: These are modeled estimates. The final price depends on equipment, installer, and specific roof characteristics.
Incentives & Tax Credits
Texas Solar Incentives Available in 2026
While the 30% federal solar tax credit is no longer available for systems installed in 2026, Texas offers a powerful incentive that directly benefits homeowners.
The primary financial benefit is the Texas property tax exemption for solar installations. This state law prevents your property taxes from increasing due to the value added by your solar panels. Given the potential increase in home value from an owned solar system, this exemption provides significant long-term savings.
There are no state-level tax credits or rebates, so the financial case for solar in Allen rests on direct bill savings, the property tax exemption, and protection from future rate hikes.
Net Metering: Address-specific utility or retail electricity plan
Limited Export Credit
Optional
The Catch: Low Export Rates in the ERCOT Market
Allen is part of Texas's deregulated electricity market. This means there is no state-mandated "net metering" policy forcing your Retail Electricity Provider (REP) to buy your excess solar power at the same price they sell it to you.
Instead, most REPs offer buyback plans that pay a much lower, wholesale-based rate. Our financial model assumes a conservative export rate of just $0.0397 per kWh. This large gap between the retail purchase price and the export credit price is why maximizing self-consumption—using the power you generate—is the key to a strong return on investment. A battery is the most effective tool for achieving this.
Projected Savings
Projected Annual Savings and Payback Period
Your savings come from avoiding the purchase of grid electricity, which costs about $0.16/kWh in the area. The more solar power you use yourself, the more you save. A 9.6 kW solar-only system is modeled to save an Allen homeowner around $1,181 per year, with an estimated payback period of 17.7 years.
Adding a battery changes the math for the better. By storing excess solar power instead of selling it to the grid for a low price, you can use that stored energy at night. This strategy boosts modeled annual savings to $1,855 and shortens the payback period to 16.3 years. Furthermore, producing your own power provides a hedge against rising utility costs, making your savings potentially greater in the future if grid prices continue to climb.