2022 Oklahoma Solar Tax Credits, Rebates & Other Incentives

Here’s a quick look at the solar incentives in Oklahoma:

  • Federal Solar Tax Credit (ITC)
  • Additional City & Utility Rebates
Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 9/18/2022

Why You Can Trust EcoWatch

Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.

How Much Can You Save With Solar Incentives in Oklahoma?

In this article, we’ll discuss the solar incentives and rebates available to Oklahoma homeowners. When you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in Oklahoma.

Jump to Section:

  1. Solar Rebates, Tax Credits and Incentive Programs in Oklahoma
  2. Net Metering in Oklahoma
  3. Federal Solar Tax Credit
  4. FAQ: Oklahoma Solar Incentives

 

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ADT Solar

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Oklahoma is not one of the top states for solar, but there has been a rise of residential solar panel installations in the Sooner State, with the biggest increase yet in 2021.1 Still, it’s a little surprising to see the state ranked as 45th for solar, especially since it shares a similar sunny-subtropical climate with its neighbor, Texas, which is ranked second.2,3

Though it seems more Texans have bought into the pros of going solar — like energy savings and independence, part of the reason why Oklahomans are so far behind the solar movement is because Texas lawmakers have created more incentives for residents to go solar, while the majority of Oklahoma’s energy production comes from fossil fuels or wind power.4

Still, there are solar incentives available for Oklahoma homeowners who install solar panels. We want to make sure you capitalize on all of the solar benefits available to you, so we’ve outlined programs you may be eligible for in this article.
Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.

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Current Solar Rebates, Tax Credits and Incentive Programs in Oklahoma

 

Oklahoma Solar Incentive Description
Federal Solar Tax Credit (ITC) The federal solar investment tax credit, or ITC, allows homeowners to claim 30% of their solar energy system costs as a credit against the federal taxes they owe. The 30% federal tax credit is available to U.S. residents through 2032 and will decrease to 26% in 2033 and 22% in 2034. 
Oklahoma Net Metering Under current Oklahoma law, all investor-owned utilities must compensate solar customers for any excess energy production at the utility’s “avoided cost” (basically “wholesale”) rate.5 

Oklahoma Solar Incentives

Again, Oklahoma doesn’t have many statewide incentives available for solar. When it comes to renewable energy sources, Oklahoma is a wind-power state, ranking third in the U.S. in the amount of electricity energy generated from wind.6 And because the state is meeting its Renewable Portfolio Standard (RPS) goals through wind power, they don’t have a ton of reason to entice people to trade out standard electricity for solar systems.

Net Metering in Oklahoma

With net metering, any kilowatt-hours (kWh) your solar panel system produces and sends to the power grid will offset the kWh supplied to you by your utility provider. Under current Oklahoma law, all investor-owned (regulated) utilities must offer interconnection to solar customers, as well as compensation for any excess energy production at the utility’s “avoided cost” (basically “wholesale”) rate.7 

close up of solar panels

Unfortunately, the law also states that public utilities can apply to the Oklahoma Corporation Commission (OCC) for permission to apply a fixed charge to solar customers who enroll in net metering. Although the OCC is encouraged to direct these utilities to consider alternatives — such as time-of-use rates — before adding a fixed charge.8

Local Incentives and Rebates

While we haven’t found any state rebates or other incentives specifically for solar photovoltaic (PV) systems, several local utilities and governments in Oklahoma offer rebates for energy efficient upgrades that may be carried out by your solar installer. Here’s a few that we’ve found:

 

Provider Energy-Efficient Incentive
Edmond Electric Rewards for energy-efficient upgrades including air-source heat pumps, geothermal heat pumps and ceiling insulations.9
Oklahoma Electric Cooperative (OEC) Rebates for the purchase of air-source heat pumps, geothermal heat pumps and electric water heaters.10
Oklahoma Gas and Electric (OG&E)  Financial incentives for energy-efficient home improvements, including A/C tune-ups, LED lighting, insulation and energy star windows.11
Oklahoma Municipal Power Authority (OMPA) Ways I Save Electricity (WISE) Rebate program Rebates on a variety of HVAC equipment, including air-source heat pumps, dual-fuel heat pumps, geothermal heat pumps and ceiling insulations.12
Public Service Company of Oklahoma (PSO) General rebates for a wide variety of HVAC equipment, appliances and building insulation measures.13
Verdigris Valley Electric Cooperative Rebates for the purchase of energy-efficient home equipment, including heat pumps, smart thermostats and more.14

Be sure to check out the DSIRE database for a full list of energy efficiency incentives and information on eligibility.

See also: See how much you can save by going solar with the EcoWatch Solar Calculator

Federal Solar Tax Credit

solar panels on white rooftop

The only tax incentive available to Oklahoma residents is the federal solar investment tax credit, or ITC. All homeowners in the U.S. who install solar power systems and/or solar batteries energy storage systems can claim the ITC on their federal tax returns. This in turn deducts 30% of the total cost of the system from the taxes you owe.

With the average cost of a solar system in Oklahoma at about $28,820, the federal tax credit can lead to a savings of about $8,646. 

The ITC was first developed through the Energy Policy Act of 2005, under the Bush administration. Initially, it was set to last for just two years, but due to its success has continually been extended for solar panel installations.

The Inflation Reduction Act, passed in 2022, extended the 30% federal tax credit through 2032. The credit will decrease to 26% in 2033 and 22% in 2034. 

To be eligible for the 30% solar tax credit, homeowners must meet the following criteria:

  • You have installed a residential solar energy system at any point from 2006 through the end of 2032.
  • You have placed the solar energy system in a residential location. It does not have to be your primary residence.
  • You own the solar energy system, either having paid for it in cash or by taking out a solar loan. Homeowners who lease solar panels are not eligible to claim the ITC.

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Read More About Going Solar

FAQ: Oklahoma Solar Incentives

At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Oklahoma residents. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.

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Karsten Neumeister

Solar Expert

Karsten is a researcher, editor, writer and energy specialist focused on environmental, social and cultural development. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.