For homeowners in Farmers Branch, electricity bills averaging $159 a month are a common reality in Texas's deregulated energy market. Rooftop solar offers a way to generate your own power, but understanding the real costs and savings is critical in 2026, especially since the rules have changed. The value of solar now depends heavily on using the power you generate yourself, rather than selling it back to the grid.
See payback and NEM impact with your inputs in the calculator.
Open calculatorBenchmark Cost Analysis
Solar Panel System Costs in Farmers Branch (2026)
The estimated cost for a professionally installed rooftop solar system in Farmers Branch is around $2.50 per watt. For a typical home needing to offset a $159 monthly bill, an 8.7 kW system is a common size.
- A solar-only system (8.7 kW) would have an estimated gross cost of $21,750.
- Adding a 10 kWh battery for energy storage and backup power would increase the total cost to approximately $36,750.
These costs reflect the full price before any local incentives. An owned solar system can also be a valuable long-term home feature, potentially supporting resale appeal for future buyers looking for lower energy bills.
Incentives & Tax Credits
Key Texas Solar Incentives for 2026
With the default federal solar tax credit for homeowners no longer available for systems placed in service in 2026, state-level incentives are more important than ever. Texas offers a powerful financial benefit through its property tax code.
100% Property Tax Exemption: This is the most significant solar incentive in Texas. A rooftop solar system increases the value of your home, but thanks to this exemption, your property taxes will not increase. You can claim this benefit by filing Form 50-123 with the Dallas Central Appraisal District. This saves you hundreds or even thousands of dollars over the life of the system.
There is no statewide sales tax exemption for residential solar equipment in Texas, nor are there any state income tax credits.
Net Metering: Address-specific utility or retail electricity plan
Limited Export Credit
Optional
How Exported Solar Energy Works in Farmers Branch
Texas operates within the ERCOT grid and has a deregulated electricity market, which means there is no statewide net metering mandate. The compensation you receive for sending surplus solar energy to the grid is determined entirely by your Retail Electricity Provider (REP).
Most REPs offer 'buyback' plans, but they typically credit you at a wholesale or 'avoided-cost' rate, which is much lower than the retail rate you pay for electricity. Our model uses a conservative export rate of about $0.04 per kWh, while the average retail rate is nearly $0.16 per kWh. This difference is why maximizing self-consumption—using the power you generate on-site—is the key to the best financial outcome with solar in Texas.
Projected Savings
Estimated Monthly & Annual Solar Savings
Installing an 8.7 kW solar system in Farmers Branch can lead to significant savings, but the amount depends on whether you add a battery. Because exported solar power is worth much less than the electricity you buy, using your own solar energy directly provides the most value.
- The solar-only system is modeled to generate first-year savings of about $1,074, with a payback period of around 17.6 years.
- The solar and battery system increases savings to $1,664 in the first year by storing excess solar energy for use in the evenings, improving the payback estimate to 16.9 years.
These savings can become more impactful over time. If grid electricity from your provider becomes more expensive in the future, the value of the power your panels produce increases, offering a buffer against rising utility costs.