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Denton Municipal Electric has been community-owned since 1905, with strong renewable energy programs. This guide covers solar costs, incentives, net metering policies, and savings projections specifically for DME ratepayers in Denton.
$0.12/kWh
Estimated residential rate. About 14% below the state IOU average of $0.14/kWh.
Available
Net metering with monthly credit rollover.
Denton
Denton Municipal Electric provides electricity to the town of Denton in Texas.
$0.25/watt
Max: $2,500. Rebate for residential solar through the Solar Ambassador program.
(940) 349-8700
Official WebsiteFree Audit Available
Schedule a free home energy audit to identify savings opportunities before going solar.
Municipal utilities typically offer lower electricity rates because they operate as non-profit, community-owned entities. There are no shareholders to pay, and local governance keeps costs in check. Here is how DME’s estimated rates compare to Texas’s investor-owned utility (IOU) average.
| Metric | DME | TX IOU Average |
|---|---|---|
| Residential Rate (est.) | $0.12/kWh | $0.14/kWh |
| Annual Cost (900 kWh/mo) | $1,296 | $1,512 |
| Ownership | Community-owned, non-profit | Shareholder-owned, for-profit |
| Rate Setting | Local board/town meeting | State PUC regulated |
| Savings vs. IOU | ~14% lower rate = ~$216/yr savings | |
Rates shown are estimates based on publicly available data. Municipal utility rates can change based on local board decisions. Even with lower rates, solar panels still provide significant savings by reducing or eliminating your electric bill. Contact DME for your exact current rate.
Understanding available incentives is key to maximizing your solar investment. Here is what DME customers can access in 2026.
The federal residential solar ITC expired on December 31, 2025. Homeowners who purchase solar panels with cash or a loan no longer receive a federal tax credit. However, third-party owned systems (solar leases and PPAs) may still qualify under Section 48/48E, with the financing company claiming the credit. This makes local utility rebates more valuable than ever.
DME
$0.25/watt
Max: $2,500
Rebate for residential solar through the Solar Ambassador program.
Must use approved installer.
heat pump
Up to $750
Rebate for high-efficiency systems.
SEER 16+ required.
ev charger
$300
Rebate for Level 2 home charger.
Must be a DME customer.
weatherization
Up to $600
Rebates for insulation and air sealing.
Energy audit required first.
Here is what a typical 8 kW residential solar installation looks like for DME customers, including available incentives and projected savings over 25 years.
Projection assumes $0.12/kWh rate with no annual increase (conservative estimate). Actual savings may be higher as rates typically increase 2-4% per year.
With a solar lease or power purchase agreement (PPA), a third-party company owns the system on your roof. The system owner can still claim the 30% federal ITC under Section 48/48E, which often results in lower monthly payments for you. You pay a fixed monthly rate or per-kWh price that is typically lower than your utility rate, with no upfront cost.
Customize your system size to see estimated costs and savings based on DME’s rates and available incentives.
Estimate your solar costs and savings with DME
19 panels at 430W each
Annual Production
10,000 kWh
Year 1 Savings
$1,200/yr
Payback Period
~19 years
25-Year Net Profit
$7,196
Estimates based on 1250 kWh/kW annual production, 0.12/kWh utility rate, and 0.5% annual panel degradation. Federal residential solar tax credit (Section 25D) expired Dec 31, 2025. Actual results vary by roof orientation, shading, and usage patterns.
Net metering with monthly credit rollover.
Net metering is the billing mechanism that makes rooftop solar financially attractive. When your solar panels produce more electricity than your home uses, the excess flows back to the grid and your meter effectively “runs backwards.” Here is the typical process with DME:
As a municipal utility, Denton Municipal Electric may participate in different state and federal programs compared to investor-owned utilities. Here is a summary of what DME customers can typically access.
The utility offers its own rebate and incentive programs for customers (see the incentives section above for details).
Home Electrification and Appliance Rebates are available regardless of utility type. Up to $8,000 for income-qualified households.
Municipal utilities set rates locally without shareholder profit margins, which often results in lower electricity costs.
DME offers net metering, allowing solar customers to earn credits for excess generation.
Denton Municipal Electric is a municipal utility, also known as a publicly owned utility or municipal light plant (MLP). Unlike investor-owned utilities (IOUs) such as Oncor and CenterPoint, municipal utilities are owned and operated by the local community.
Denton Municipal Electric customers pay approximately $0.12/kWh, which is roughly 14% less than the state average for investor-owned utilities ($0.14/kWh). As a municipal utility, DME sets rates locally, and revenue stays in the community rather than going to shareholders.
Yes. Denton Municipal Electric offers a solar rebate of $0.25/watt (max $2,500). Rebate for residential solar through the Solar Ambassador program. Note: The federal residential solar tax credit (Section 25D) expired on December 31, 2025, so this local rebate is now one of the most important incentives available to homeowners.
Yes. Denton Municipal Electric offers net metering for solar customers. Net metering with monthly credit rollover.
As a municipal utility, Denton Municipal Electric may participate in different programs than investor-owned utilities. Contact the utility directly or visit their website to learn about available efficiency programs and rebates.
To install solar panels as a Denton Municipal Electric customer: (1) Get a free solar estimate to determine your optimal system size. (2) Contact DME about interconnection requirements and any pre-approval needed. (3) Choose a NABCEP-certified installer. (4) After installation, apply for any available utility rebates. (5) Your system connects to the grid and you begin saving. The process typically takes 2-4 months from signing to activation.
Get a free, personalized solar estimate tailored to DME’s rates and incentives. Our NABCEP-certified team handles everything from design to permitting to interconnection.
Serving Denton and all of Texas. Free consultation, no obligation.