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

Updated Nov 8, 2026

  • Residents in Dallas, TX spend about $247 per month on electricity based on utility bills shared with EnergySage—that translates to $0.15 per kWh of electricity, roughly 30% lower than the national average of $0.21/kWh.

  • These costs add up: Over 25 years, you'll pay about $91,100 for electricity. In all-electric homes, that number could be a lot higher.

  • Because most cities in Texas have deregulated electricity markets, you may have the power to choose your electricity provider, which could help you save on your monthly bills.

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Written by: Emily Walker

Residents in Dallas, TX who request quotes on the EnergySage Marketplace spend an average of $247 monthly on electricity. That adds up to $2,964 per year. A different way to look at it is that a typical Dallas, TX resident uses 1,676 kWh of electricity per month and 20,112 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 38 ¢/kWh. 

As of November 2026, the cost of electricity in Dallas, TX is 15 ¢/kilowatt-hour (kWh)—roughly 30% 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).

Price / kWh 0 0.05 0.1 0.15 0.2 0.25 Dallas National $0.15 $0.21 The graph above highlights price in $/kWh.
Price / kWh 0 0.05 0.1 0.15 0.2 0.25 Dallas National $0.15 $0.21 The graph above highlights price in $/kWh.

Most electricity markets in Texas, including those in Dallas, are deregulated. This means you can choose the company that supplies electricity to your home.

While you can choose your energy provider in Dallas, your utility company is typically based on your location. The major utility company in Dallas providing transmission and distribution is Oncor Electric, a privately held Investor-Owned Utility (IOU). Oncor charges fees for electric delivery, including a flat fee and a price per kWh. These fees are part of your total energy bill. 

You may also find aggregation programs that allow you to participate in a group buying program, offering lower prices than typical retail rates, similar to buying in bulk. Joining one of these programs won’t change your Dallas utility company, but it may help you lock in a lower rate and reduce monthly bills.

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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.

Most Dallas residents pay a set rate per kWh of electricity they use, but it depends on the choice of plan. With fixed rates, your price can vary based on utility charges, but your energy rate remains the same for the length of the contract. 

You can also choose a variable rate plan where the price changes, such as time-of-use (TOU) rates or demand charges.

How clean is the electricity in Texas?

Most electricity is generated by natural gas in Texas at 56%, according to August 2025 data from the U.S. Energy Information Administration. Another 12% comes from coal and 6% from nuclear. Only about 25% is powered by renewables, so going solar in Texas is a great way to shrink your carbon footprint.

Some electric companies in Texas offer 100% renewable energy plans or the option to pay a little more for clean power. These are great alternatives if you can’t install solar panels on your roof, or rent 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 9 years. Then, the solar panels will continue to produce free electricity for years to come.

Does Dallas offer net metering?

When your solar panels produce more energy than your home needs, you can sell the extra electricity to your energy company. Net metering is not a state law or requirement in Texas. But Dallas is part of the deregulated energy market, so you can choose a solar buyback plan offering similar benefits. By enrolling, you earn credits toward your future electric bills and may even be able to cover your entire power bill.  

Before choosing a plan, check the compensation or export rate. Some energy companies in Dallas will offer the retail rate (what you pay), while others pay you the wholesale rate or a specific amount per kWh that’s lower than the retail rate.

Consider choosing an energy company that compensates at the retail rate, like Chariot Energy, Gexa Energy, and Green Mountain Energy. This way, you get full credits for the excess energy your solar panels produce, and the most out of your investment.

Learn more about Texas solar incentives

How much can you save with solar?

The Lone Star State is known for its relatively expensive energy rates, at least for a southern state. With abundant sunshine, you can often save big by going solar in Dallas, TX.

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

Current monthly electric bill

10-year electricity cost

20-year electricity cost

30-year electricity cost

$50

$6,700

$15,000

$26,000

$100

$13,000

$30,000

$52,000

$150

$20,000

$46,000

$78,000

$200

$27,000

$61,000

$100,000

$250

$33,000

$76,000

$130,000

Assuming a 2% annual increase based on inflation and average annual electric rate increases in Texas.

Let's assume you pay $247 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 $27,200 before any available incentives.

In the first year with solar, you'll avoid spending $2,800 on electric bills. Over five years, you'll avoid $14,600; by 10 years, you'll have avoided $30,700. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $91,100 on electric bills in Dallas, TX.

The average payback period in Dallas, TX is 9 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $63,900 over 25 years with solar.

Cost Time (years) $0 $50,000 $100,000 1 5 10 15 20 25 Cumulative utility savings Cumulative solar cost*
Cost Time (years) $0 $50,000 $100,000 1 3 5 7 9 11 13 15 17 19 21 23 25 Cumulative utility savings Cumulative solar cost*

*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.

Use our Solar Calculator to get a custom savings estimate

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:

  • Atma Energy Inc.
    Multi-state
    Established 2020
    Elite Installer
    Awarded 2026 EnergySage Local Installer of the Year for Texas, Atma Energy is recognized for delivering exception... 
    Elite Installer
    Screened & Verified
    5.0 /5.0
    75 Reviews

    Awarded 2026 EnergySage Local Installer of the Year for Texas, Atma Energy is recognized for delivering exception... 
  • Bluesun Services
    Multi-state
    Elite Installer
    Bluesun Services was founded by solar professionals whose industry experience dates back to 2018. Before launchin... 
    Elite Installer
    Screened & Verified
    5.0 /5.0
    5 Reviews

    Bluesun Services was founded by solar professionals whose industry experience dates back to 2018. Before launchin... 
  • OTG Installs
    Multi-state
    Established 2023
    Advanced Installer
    Home solar made simple across 27 states. OTG Installs uses American-made equipment, backs it with strong warranti... 
    Advanced Installer
    Screened & Verified
    5.0 /5.0
    6 Reviews

    Home solar made simple across 27 states. OTG Installs uses American-made equipment, backs it with strong warranti... 
  • Beall Power Solutions Inc.
    Multi-state
    Approved Installer
    Power systems for those who don’t want to depend on the grid. Engineered for homes, businesses, and rural propert... 
    Approved Installer
    Screened & Verified
    5.0 /5.0
    7 Reviews

    Power systems for those who don’t want to depend on the grid. Engineered for homes, businesses, and rural propert... 
  • Logic Solar
    Multi-state
    Established 2021
    Approved Installer
    Choose Logic Solar for expert solar installations, transparent pricing, and unmatched customer care. We make goin... 
    Approved Installer
    Screened & Verified
    4.9 /5.0
    8 Reviews

    Choose Logic Solar for expert solar installations, transparent pricing, and unmatched customer care. We make goin... 
See the complete list of solar installers in Dallas, TX

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