Key Points
- Oklahoma is ranked in the top 10 states for peak sunlight, making it an ideal place for solar energy.
- One of the best ways to save money on solar panels in Oklahoma is with the federal solar tax credit, providing a 30% return on all purchases made toward a solar array.
- Oklahoma has no state credits or rebates for solar installations, and the net metering policy is weak.
Oklahoma is ranked in the top 10 states for peak sunlight, making it an ideal place for solar energy. However, the Sooner State invests most of its resources into wind, making the alternative practically nonexistent. So how do homeowners save money on solar panels in Oklahoma if they want to make the switch?
Despite great conditions, it’s hard to find incentives. However, some options still exist. Continue reading to learn more about how to save money on an installation.
How to Save Money on Solar Panels in Oklahoma: Overview
We just looked at external factors, and solar panels in Oklahoma would make a lot of sense. With decent rates on equipment and excellent sunlight, homeowners could cut utility bills by a significant margin. Even with larger systems than in other states, Oklahomans might save as much as $23,000 or more over the course of 25 years.
Unfortunately, this is where the benefits stop in the Sooner State. Because legislation favors wind power, there’s virtually no support for solar energy. In Oklahoma, residents only have access to a modest net metering policy. And with the state’s renewable standards long expired, there’s not much hope for improvement in the near future.
Let’s take a closer look at what’s going on with solar panels in Oklahoma.
Solar Panels in Oklahoma: Federal Incentive
One of the best ways to save money on solar panels in Oklahoma is with the federal solar tax credit. This program provides a 30% return on all purchases made toward a solar array. This includes labor, equipment, and even sales tax. Those installing a 6kW system could cut the price by over $4,500.
There are a few stipulations you should know about the federal incentive. Foremost, you must purchase your system outright or with a loan. Otherwise, you won’t qualify for the return.
The federal credit lasts in its current state until 2032. It drops to 26% in 2033 and 22% in 2034. And unless it’s extended, the program terminates in 2035. So don’t wait too long to purchase an array.
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Oklahoma’s State Credits and Rebates
In some states, homeowners can save additional money on their installation through financial incentives, such as credits and rebates. Unfortunately, Oklahoma has no benefit for solar in these forms.
Further, the Sooner State has one of the weakest net metering mandates in the country. Usually, this incentive requires utility companies to pay customers for their excess solar energy each month. However, Oklahoma only requires that they offer it to customers, not that they have to pay.
Solar Panels in Oklahoma: Government Regulations
Oklahomans receive few solar benefits partly due to the state’s lack of renewable portfolio standards (RPS). An RPS tells us the state’s intentions to invest in renewables.
Oklahoma had a goal of 15% clean energy by 2015. And while they met that objective, the state never updated its standards going forward. This means that utilities have no incentive to help homeowners purchase solar panels.
Furthermore, the Sooner State offers no tax exemptions for making the switch. In some states, homeowners might receive reprieves on sales, and others save on property taxes for up to 15 years. These would be easy ways to introduce solar to residents without any investment from the state.
Should Oklahomans Lease Solar?
In many places across the country, homeowners can lease a solar panel system as an affordable way to make the switch. While this option disqualifies the array from any incentives, including the federal solar tax credit, it can still help save money on electricity while reducing carbon footprints.
In Oklahoma, however, homeowners don’t have this option. This means they’ll have to buy their system outright or not participate at all. This further dissuades people from making the switch to clean energy.
Solar Panels in Oklahoma: Incentive Summary
| Incentive | Accessiblity |
|---|---|
| Federal Tax Incentive | 30% credit |
| Oklahoma Tax Credits / Rebates | None / none |
| Net Metering | Voluntary net metering at avoided cost rate |
| Renewable Portfolio Standard | 15% by 2015 (expired) |
| Property Tax Exemption | None |
| Sales Tax Exemption | None |
| Performance Payment Program | None |
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