Going Solar in Sherman? Your Electricity Plan Matters More Than Ever.
For homeowners in the Sherman area, the value of solar in 2026 hinges on one key detail: the buyback plan offered by your Retail Electricity Provider (REP). Unlike states with mandated net metering, Texas's deregulated market means the compensation for your exported solar energy can vary dramatically. This makes understanding how to use your own solar power the most important part of the financial equation.
Compare bill offset and incentives—open the calculator next.
Open calculatorBenchmark Cost Analysis
2026 Solar System Pricing in Sherman
Without the federal tax credits of previous years, the upfront cost is the primary number for homeowners to consider. A typical 8.7 kW solar-only system is estimated to cost around $21,750. This system is sized to offset a significant portion of a household bill averaging $159 per month.
For homeowners seeking backup power, adding a 10 kWh battery increases the total cost to approximately $36,750. While a battery improves savings by storing energy for evening use, its main benefit in this market is often energy security during grid outages.
Incentives & Tax Credits
The Key Texas Solar Incentive: Property Tax Exemption
While the 30% federal tax credit for homeowners expired at the end of 2025, Texas offers a powerful and permanent financial benefit. Thanks to a state law, the value added to your home by a solar panel system is 100% exempt from property taxes. You can install a $21,750 system without seeing your property tax bill increase as a result, a benefit that provides value year after year.
This tax exemption, combined with the long-term bill savings, forms the core financial case for owned solar in Texas. An owned system can also be an attractive feature for potential buyers if you decide to sell your home in the future.
Net Metering: Address-specific utility or retail electricity plan
Limited Export Credit
Optional
Understanding Export Rates in the Texas Market
Texas does not have a statewide net metering law. Instead, your ability to get paid for surplus solar energy depends on the plan you choose from a Retail Electricity Provider (REP). Most plans that buy back solar power do so at a rate far below the retail price.
This model shows a typical scenario where you save nearly $0.16 for every kilowatt-hour (kWh) of solar you produce and use at home, but you only receive about $0.04 for every kWh you send to the grid. This difference is why maximizing self-consumption—using the power you generate on-site—is the most effective strategy for solar savings in Sherman.
Projected Savings
How Solar Creates Value on Your Bill
A solar-only system is modeled to generate around $1,074 in electricity savings in the first year. These savings come primarily from avoiding the purchase of power from your provider at the full retail rate of $0.16/kWh. Because exported power is only worth about $0.04/kWh, the financial goal is to use as much of your own solar generation as possible.
Adding a battery increases the first-year savings to an estimated $1,664. It achieves this by storing excess solar energy produced during the day and deploying it at night, which further reduces the amount of electricity you need to buy from the grid. Over time, these savings can become more impactful if grid electricity rates continue to climb.