Cost of electricity in Dallas, TX: Real numbers from real people

Residents in Dallas, TX who request quotes on the EnergySage Marketplace spend an average of $221 monthly on electricity. That adds up to $2,652 per year. A different way to look at it is that a typical Dallas, TX resident uses 1,541 kWh of electricity per month and 18,492 kWh over the year. 

(For what it’s worth: Dallas, TX residents shopping for solar on EnergySage may use more electricity than a typical household.)

The easiest way to compare electricity costs across regions is to look at the electricity rate. In the U.S., residential rates generally range from 11 ¢/kWh all the way up to 34 ¢/kWh. 

As of March 2026, the cost of electricity in Dallas, TX is 14 ¢/kilowatt-hour (kWh)—roughly 29% lower than the national average cost. That number is based on real-world electric bills shared with EnergySage over the past 12 months. You can compare that number to the most recent average state electric price reported by the U.S. Energy Information Administration (EIA).

When you pay your electric bill, you’re not only covering the costs to produce that electricity, but also the costs of running and maintaining the electrical grid, as well as public benefit funds that promote things like renewable energy and energy efficiency.

Electric bill costs are rolled into fixed (monthly customer charges) and variable charges (¢/kWh that you use). 

Fixed charges, like the flat fee for having a meter, generally remain the same monthly unless your utility makes a policy update. 

Your variable charges will change every month and depend on your electricity rate and how much electricity you use. 

Your electric bill's variable charges will include a supply (or generation) charge and a transmission and distribution (or delivery) charge. The supply charge covers the cost of electricity generation, while the transmission and distribution charges cover the cost of delivering it to your home.

As long as you have a suitable roof, one of the surest ways to save on energy is to go solar—ideally with a vetted contractor offering a competitive price. 

Solar panels will reduce or even eliminate your electric bills in the short term and protect you against rising electricity costs in the long run, too. The amount you save depends on how much you spend on electricity now and how much of your electric bill you can offset with solar energy.

Solar panels are a big investment, but Dallas, TX homeowners who install them—and pay upfront—break even after an average of just 8.3 years. Then, the solar panels will continue to produce free electricity for years to come.

How much can you save with solar?

Just take a look at how much you'll spend on electricity over time based on your current bill. It’s easy to see how going solar can pay off quickly.

Electricity cost over time in Texas

Let's assume you pay $221 for electricity monthly (the Dallas, TX average) and that electricity prices increase by 2% annually. Let's also assume you buy your solar panel system upfront and that it costs you $23,500 before any available incentives.

In the first year with solar, you'll avoid spending $2,600 on electric bills. Over five years, you'll avoid $13,600; by 10 years, you'll have avoided $28,700. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $84,900 on electric bills in Dallas, TX.

The average payback period in Dallas, TX is 8.3 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $61,400 over 25 years with solar.

*The cumulative solar cost shows the full price of a solar panel system in Dallas, TX after state and local incentives.

Your solar savings depend on you

How much your utility company charges for electricity is a big indicator of how much you'll save with solar. But your exact solar savings depend on your unique situation—including your energy usage, roof layout, system size, and how you pay for your system. 

Here are some reasons your savings could be below average:

• You don’t use much electricity, or your roof is small or has a less-than-ideal layout. You might have a relatively long payback period, so you'll save a little less over time.

• You don't install enough solar panels to 100% offset your energy use. You’ll pay less up front but save less in the long run. 

• You finance your solar panel system with a loan or sign a lease or power purchase agreement (PPA) instead of paying up front. These types of arrangements can make a lot of sense for keeping your capital flexible and will allow you to start saving sooner. But they will cut into your long-term savings.

Choosing a high-quality solar installer is the key to getting a top-notch solar panel system that will help you save on electric bills. 

We pre-screen all solar companies on EnergySage to ensure they get the job done right. Here are the highest-rated EnergySage installers in Dallas, TX: