Oklahoma might not boast an extensive list of solar incentives, but there are still some key programs that can help you save on your system when looking into the best solar companies. Understanding these can make a significant difference in your savings, especially as electricity rates keep climbing. Let’s break down what options are available for Oklahomans looking to harness the sun’s power and put money back in their pockets.
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What Are the Available Oklahoma Solar Tax Credits and Rebates?
Oklahoma residents can take advantage of the following solar incentives:
Net Metering
Solar owners can participate in net metering if their utility company has a program. Net metering is an easy way to save on energy costs—32% of our 1,000 surveyed solar buyers have participated in a net metering program. Any excess energy your solar panel system generates goes back to the power grid. Your utility provider gives you credits per kilowatt-hour (kWh) of energy sent back. You can use these credits to pay future electric bills.
Follow these steps to enroll:
- Call your local utility company to see if it participates in net metering. Investor-owned utilities (IOUs) are required to offer the program, but electric cooperatives and municipal utilities might not.
- Ensure you have a bi-directional meter installed. Most homes have one, but you can get one for free if you don’t.
- Once your provider connects your system to the power grid, ask it to complete a net metering application for you.
- After you enroll in a net metering policy, check your energy bills for the next few months to ensure you accrue energy credits. If you’re not, contact your utility company and installer to determine the issue.
Oklahoma Electric Cooperative, Northeast Oklahoma Electric Cooperative, and OG&E are three utility companies that offer net metering programs.
More resources:
- Net Metering in Oklahoma
- Oklahoma Electric Cooperative Net Metering Policy
- Northeast Oklahoma Electric Cooperative Net Metering Policy
- OG&E Net Metering Policy
Federal Solar Tax Credit
The federal solar investment tax credit is among the most financially rewarding solar incentives available—64% of our 1,000 surveyed solar buyers have used it. This credit allows you to claim 30% of your total solar costs on your federal income taxes, reducing or even eliminating your owed taxes.
Once your solar panel installation is complete, you’ll fill out IRS form 5695 the following tax season. The form requires information about your solar energy system, such as size, cost, and installation company. You’ll file the form with your other tax documents.
The federal tax credit is only available to those who own their system, meaning residents who bought it outright or via solar loan. Those with a solar lease or power purchase agreement (PPA) aren’t eligible.
More resources:
How Much Does Going Solar Cost in Oklahoma?
The average cost of a residential solar panel system in Oklahoma is $25,938 for a 5- to 7-kilowatt (kW) solar photovoltaic (PV) system. However, actual costs vary depending on your energy needs, your roof’s slope and angle to the sun, and your system’s size and complexity,
Here are some of the most common solar financing options:
- Cash purchase: Buy your solar PV system upfront to avoid interest fees and other costs from financing.
- Solar loan: Take out a loan to cover your costs. Compare lenders for low interest rates and loan terms up to 25 years.
- Solar lease: Rent your panels with little to no money down in exchange for a monthly lease payment. The solar company owns and maintains the system.
- Power purchase agreement (PPA): Lease your panels from a local solar company and pay by the kilowatt-hour (kWh) you draw from the system. PPAs typically have little to no upfront costs.
Is Going Solar in Oklahoma Worth It?
Going solar is worth it in Oklahoma. However, whether it’s right for you depends on how much energy you typically use to power your home. You can find your energy usage on your utility bill. If you have a particularly small home that doesn’t use much energy, investing in a system may not make financial sense. You can determine your potential savings by subtracting the amount you’ll pay for solar from what you would otherwise pay for electricity. A top Oklahoma solar company can help to calculate your potential savings and determine if solar is right for you.
Saving money isn’t the only reason to go solar. Clean energy positively impacts the environment by decreasing greenhouse gas emissions and the use of fossil fuels.
The Process of Going Solar in Oklahoma
Here’s how to install solar panels in Oklahoma, step by step.
1. Consultation
Your solar journey begins with a consultation to assess your home’s solar potential. Solar companies evaluate factors like sunlight exposure, roof layout, and energy consumption. They use satellite imaging and other tools to estimate your system’s potential output and how many solar panels you need before scheduling an in-person site visit.
2. Design
Once an installer evaluates your property, they’ll design a system that meets your energy needs and budget. This usually takes one to two weeks and can include options for solar battery storage, different types of solar panels, and inverters.
3. Permitting and Approvals
Your installer will handle the necessary permits and utility approvals, including building codes, HOA regulations, and Oklahoma utility interconnection agreements. This takes one to three months, depending on local requirements.
4. Installation
Once approved, solar panel installation takes one to three days. Your installer will mount the panels, connect the inverter, which converts the panels’ direct current (DC) electricity to the alternating current (AC) used by home appliances, and integrate the system with your electrical setup.
5. Final Inspection and Activation
Your solar provider and utility will conduct final inspections to ensure the system functions properly. Many installers offer solar monitoring apps to track your energy production. They might also outline any ongoing maintenance your system might require.
Our Conclusion
Oklahoma solar incentives may be fewer than in other states, but you should still apply for what you can and check with your solar installer about local tax credits or rebates.
FAQs About Solar Tax Incentives in Oklahoma
Does Oklahoma have a solar rebate?
Oklahoma has no state-specific solar rebates, but residents can participate in a local net metering program if their utility company offers one. Net metering helps offset the cost of electricity bills.
What is the incentive for solar panels in Oklahoma?
Oklahoma doesn’t offer many solar incentives. Homeowners can lower their energy costs by signing up for net metering through their utility company. Those who own their system can also apply for the federal solar tax credit.
Can I get free solar panels in Oklahoma?
No, you can’t get free solar panels in Oklahoma. PPAs allow homeowners to get solar panels without an up-front cost, but this disqualifies them from most incentives.
How much does it cost to go solar in Oklahoma?
The average cost of solar panels in Oklahoma is $11,135–$15,065 for a 5–7 kW system
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
