Oklahoma’s sunny climate makes it an excellent place to harness solar energy. With the right incentives, homeowners and businesses can save money while reducing their carbon footprint. In this blog, we’ll explore the key solar incentives available in Oklahoma, how to make the most of them, and why now is the perfect time to go solar.
Understanding Federal Solar Incentives
The Federal Solar Investment Tax Credit (ITC) is a powerful tool for Oklahoma residents looking to offset solar installation costs.
How the ITC Works
The ITC allows you to deduct 30% of your solar installation costs from your federal tax liability. For example, if your solar system costs $15,000, you could receive a tax credit worth $4,500. This applies to systems purchased outright or financed but not leased.
This incentive is slated to remain at 30% through 2032, dropping to 26% in 2033 and 22% in 2034. Acting soon ensures you get the maximum benefit. The ITC has been a key driver for residential and commercial solar adoption across the U.S., and its extension highlights the government’s commitment to supporting renewable energy.
Additional Savings Opportunities
Combining the ITC with state and local programs can dramatically reduce your out-of-pocket costs. Be sure to consult with a tax advisor to ensure you’re eligible for the full credit. Additionally, financing options such as solar loans or home equity loans can help spread out the upfront costs, making it easier to access solar energy savings.
The Net Metering Program in Oklahoma Solar Incentives
Net metering is another essential incentive for solar adopters in Oklahoma. This program lets you earn credits for excess electricity your solar panels produce.
How Net Metering Works in Oklahoma
Investor-owned utilities like Oklahoma Gas & Electric (OG&E) and Public Service Company of Oklahoma (PSO) offer net metering. When your panels generate more electricity than you use, the excess energy feeds back into the grid, and you receive a credit on your utility bill. These credits can significantly reduce your monthly energy costs, making solar an even more attractive investment.
Considerations for Net Metering
While Oklahoma’s net metering program is beneficial, not all utilities offer full retail value for energy credits. Additionally, some utilities charge fees to participate. Reviewing your utility provider’s policy ensures you understand your potential savings. Remember that program rules and credit rates can vary widely, so conducting thorough research or consulting a solar professional can help you optimize your benefits.
Oklahoma Solar Incentives: State and Local
While Oklahoma doesn’t have statewide solar rebates, several local utility companies provide programs to support renewable energy.
Notable Utility Incentives
- Oklahoma Electric Cooperative (OEC): Offers rebates for energy-efficient systems like heat pumps and water heaters, which pair well with solar energy systems. Homeowners can combine these upgrades with solar to maximize energy savings and improve overall home efficiency.
- Public Service Company of Oklahoma (PSO): Provides cash-back incentives for energy-efficient upgrades, including HVAC improvements and insulation. These rebates can be a stepping stone to integrating solar energy solutions.
- Edmond Electric: Rebates for improvements like insulation and HVAC upgrades can complement solar energy savings. These programs often align with broader energy efficiency goals, making it easier to transition to renewable energy sources.
- Oklahoma Municipal Power Authority (OMPA): The WISE program offers rebates for renewable energy installations. Solar panel installations may qualify, allowing residents to offset a portion of the upfront costs.
How to Qualify for Oklahoma Solar Incentives
Eligibility requirements vary by program. Most incentives require the submission of detailed application forms, proof of system installation, and verification of compliance with specific energy standards. Contact your utility provider for details about application processes, deadlines, and additional documentation you might need to secure these benefits.
The Cost of Solar Panels in Oklahoma
Solar panels in Oklahoma are competitively priced compared to national averages.
Upfront Costs and Savings
The average cost of solar panels in Oklahoma is approximately $2.62 per watt. For a typical 6-kilowatt system, the total cost is about $15,720 before incentives. After applying the ITC, the price drops to $11,004. Solar providers often offer free consultations to help you determine the optimal system size for your home and energy needs, ensuring you get the best return on investment.
Long-Term Savings
Solar panels pay for themselves in approximately 10 years for most Oklahoma homeowners, with average savings of over $26,000 in 20 years. Beyond the financial savings, solar panels can increase your property value. According to real estate studies, homes with solar installations often sell faster and at higher prices than those without.
Benefits of Going Solar in Oklahoma
In addition to financial incentives, solar power offers environmental and energy security benefits.
Environmental Impact
With solar, you reduce your reliance on fossil fuels, lowering your carbon footprint. With over 230 sunny days a year, Oklahoma’s climate is perfect for maximizing solar energy production. Each kilowatt-hour of solar-generated electricity reduces greenhouse gas emissions, contributing to cleaner air and a healthier environment.
Energy Independence
Solar energy can protect against power outages, especially with battery storage systems. This can be particularly valuable during severe weather events common in Oklahoma, such as tornadoes and ice storms. By generating your power, you become less reliant on the grid, giving you peace of mind and greater control over your energy supply.
Community Benefits
Investing in solar energy also contributes to Oklahoma’s local economy by creating jobs in solar installation, maintenance, and related industries. Supporting renewable energy initiatives can foster economic growth and promote sustainable development in your community.
Conclusion
With a combination of federal tax credits, net metering, and local utility programs, Oklahoma residents have more reasons than ever to embrace solar energy. These incentives reduce costs and make going solar a financially savvy and environmentally responsible choice.
Solar power isn’t just a cost-saving measure—it’s an investment in a cleaner, more sustainable future. By acting now, you can maximize your savings and take full advantage of the incentives available in 2025. Whether you’re a homeowner or a business owner, the time to go solar is now.
Don’t wait—start your solar journey today and take advantage of these programs before they change.
