Making Solar Work in Addison's Energy Market
For homeowners in Addison, going solar in 2026 is less about sending power back to the grid and more about using every kilowatt you generate yourself. In Texas's deregulated electricity market, the power you buy from your retail provider costs significantly more than what they pay you for your excess solar energy. This shifts the focus to self-consumption, where the primary goal is to offset your own usage first, maximizing your savings by avoiding high grid prices.
See payback and NEM impact with your inputs in the calculator.
Open calculatorBenchmark Cost Analysis
Estimated Solar Panel Costs in Addison for 2026
Based on local data, installing a 7.8 kW solar panel system in Addison costs approximately $19,500. This price reflects the total upfront investment for a system sized to cover the electricity needs of a typical local home. For homeowners interested in adding battery storage for backup power during outages, a combined system with a 10 kWh battery would have an estimated cost of $34,500. These figures are calculated without the federal tax credits that were available in previous years, representing the new market reality for 2026.
Incentives & Tax Credits
Key Financial Benefit: The Texas Property Tax Exemption
While the 30% federal tax credit for homeowners is no longer available for systems installed in 2026, Texas offers a powerful and permanent financial incentive. Homeowners are eligible for a 100% property tax exemption on the value added by a solar energy system. This means you can increase the value and appeal of your home with solar panels without paying a single extra dollar in property taxes. This state-level benefit is crucial for the long-term financial picture of going solar. An owned solar system can also be a significant asset when selling your home, appealing to buyers looking for lower, more predictable energy bills.
Net Metering: Address-specific utility or retail electricity plan
Limited Export Credit
Optional
Understanding Export Rates in the ERCOT Market
Addison is part of the ERCOT grid, where you choose your Retail Electricity Provider (REP). There is no statewide requirement for these companies to buy your excess solar power at the full retail rate. In fact, most buy it back at a much lower wholesale or "avoided-cost" rate. Our model uses a conservative estimate of $0.0397 per kWh for exported energy—about a quarter of the price you pay for electricity. This reality makes maximizing self-consumption essential. Using the power you generate is four times more valuable than selling it back to the grid, which is why timing your energy use or adding a battery can be effective strategies.
Projected Savings
How Rooftop Solar Translates to Real Savings
A 7.8 kW solar system in Addison is modeled to generate around $966 in electricity bill savings in its first year. These savings come directly from producing your own power and avoiding the retail rate of $0.1587 per kWh. Over time, these savings can grow. If grid electricity from your retail provider becomes more expensive in the future, the power your panels produce becomes even more valuable, offering a hedge against rising utility costs. While adding a battery increases upfront costs, it also boosts annual savings to an estimated $1,474 by storing solar energy for use after sunset, further reducing reliance on the grid.