Solar Panel Cost In 2023 (Homeowner’s Installation Savings Guide)
By Karsten Neumeister /
Oklahoma residents who install solar arrays see a healthy average return on investment (ROI) of over $14,000 after the panels pay for themselves.
Oklahoma has one of the slowest adoption rates in the country, according to the Solar Energy Industries Association (SEIA).1 Likely because the state is one of the biggest producers of wind energy.
However, the healthy energy savings Oklahomans see by converting to solar is one of the primary reasons clean energy is so beneficial in the Sooner State. Although the local cost of going solar is above average at over $28,000, the Oklahoma solar incentives help make conversion worthwhile in OK.
Additionally, Oklahoma sees well above-average amounts of sunlight every year, and the local energy demands are significantly higher than they are in most other states.2 That means residents can usually generate ample energy and offset abnormally high utility bills to maximize savings.
In this guide, we’ll be walking through the solar conversion process from start to finish. You can also use the links below to skip to a specific step in the process.
Step 1: What to Consider When Buying Solar Panels
Step 2: Getting a Quote from a Solar Provider
Step 3: Signing a Solar Contract
Step 4: What to Expect on Solar Panel Installation Day
Step 5: Final Inspection for Installed Solar Panels
Regional Service
Average cost
Pros
Cons
Average cost
Pros
Cons
Regional Service
Average cost
Pros
Cons
Since installing photovoltaic (PV) panels in your area is so expensive, you’ll naturally want to make sure solar is a worthwhile option for your home before you sign any contracts. We’ll explain a few ways to evaluate your home’s solar viability in the following sections.
The first thing we recommend you do is figure out if solar is a good option for your specific home.
A good first step in determining your home’s solar viability is to get an estimate of how many PV panels you need. You can use our solar calculator to get an estimated system size in watts or kilowatts (kW)/1,000 and then multiply by the average cost per watt in your area — $2.62 — to get a total cost.
The average system size in Oklahoma is 11 kW. If your estimated system size is significantly larger than this, then there’s a chance there’s some factor that is limiting your production. Weather and shade on your roof are the two most likely culprits.
Oklahoma as a whole sees an average of 234 sunny days per year, which is well above the national average of 205.3 PV panels generate less energy in cloudy conditions, so you should check your local weather trends to see where your city stands. If it’s well below 234, then your solar system will still be valuable, but not quite as valuable as it would be elsewhere in the state.
You also need to consider shading on your roof, as a panel’s efficiency will drop significantly if a tree or other obstruction blocks the available sunlight.
Another important factor in determining whether or not solar is a good fit for your home is your access to net metering. Net metering — commonly referred to as NEM or net energy metering — is a billing policy through which your utility company credits you for all excess energy your panels generate.
You earn NEM credits for the excess energy sent to the grid, and those credits can pay down electric bills in the future. NEM effectively reduces your electricity costs, and it can help eliminate utility bills altogether.
Thankfully, the Oklahoma Corporation Commission (OCC) mandates net energy metering for customers of all investor-owned utilities. These include three of the larger power providers in the state:
NEM is widely available in Oklahoma, but the rate at which you’re credited isn’t specified by the OCC. That means you could receive the full retail rate — which is ideal and leads to the greatest long-term savings — or you could receive a much less beneficial avoided-cost rate or wholesale rate.
For example, Liberty Utilities and PSO both use an avoided-cost rate.4,5 OG&E has a superior net metering program that offers the full retail rate to qualifying customers.6
Net energy metering is not mandated for municipal electric companies or electric cooperatives, but some will opt to offer NEM to promote renewable energy. You should check with your provider before deciding if solar is right for you.
The table below includes some solar statistics for Oklahomans and U.S. residents in general. Seeing these compared side-by-side should illustrate how beneficial PV systems are in OK as compared to other states.
Oklahoma State Average | United States National Average | |
Solar Power System Size Required | 11 kW | 9 kW |
Typical Cost Per Watt to Install Photovoltaic (PV) Equipment | $2.62 | $2.66 |
Average Total System Cost Before Federal Solar Income Tax Credit | $28,820 | $23,940 |
Average Federal Solar Tax Credit Value | $8,646 | $7,182 |
Average Total System Cost After Federal Credit | $20,174 | $16,758 |
Average Panel Payback Period | 14 years | 12 years |
Average Lifetime Savings of Converting to Solar | $14,190 | $22,379 |
As you can see, going solar isn’t quite as valuable in Oklahoma as it is in most other states, but it can still save you over $14,000 after the system pays for itself.
Once you figure out if solar is a good option for your home, your next step should be to figure out how to pay for your equipment. Since the typical Oklahoma solar system averages around $28,820 before incentives, finding a solar financing option that works with your budget is a priority.
First, if you haven’t already, you should use our solar calculator to figure out what size system you need. The calculator will also give you an estimated installation cost. This total could be much higher than you’re comfortable with, but remember, your panels should pay for themselves and provide additional savings over time above and beyond the initial cost of solar panels.
You have four primary options when it comes to paying for your solar power system. We’ll discuss these below:
We strongly recommend you consider the PV panel payback period when choosing a financing option. The sooner your panels pay for themselves, the more beneficial that option for paying for solar will be for you in the long run.
Once you’ve confirmed that solar is expected to be a good fit for your home and save you money, you can move on to get quotes from installers in your area. We’ll explain what to look for in a company and how to proceed with this step of the process in the following sections.
Choosing a solar system installation company can be intimidating, not only because there are a bunch of installers to choose from in Oklahoma but also because the one you choose will influence your system price, the customer service experience you get and more.
We recommend choosing a provider that meets all of the following criteria to ensure you get a reputable company that provides good value for the money you’re spending:
Below, we’ll include a quick list of some of our most highly recommended solar companies in your area:
You can read more about these companies in our guide to the best solar providers in OK.
Within a day or two of providing your contact information to an installer, you should be connected with a sales representative. They will either call or email to set up a formal appointment, and they’ll ask for a copy of a recent energy bill.
Your consultation can usually either be virtual or in person. During the meeting, you’ll need to answer some questions about your energy costs and consumption, like which appliances and systems in your home are powered by electricity. Your representative will then provide that information to the company’s design team.
Once a system is designed for your home, your sales rep will connect with you again, provide a formal solar proposal and set up another call to go over the proposal. Your solar quote contains a lot of information, so we recommend reading through it carefully to make sure you understand all of the details. Below are some of the things you should look for in your quote:
It takes some time and effort to get to the point where you have a formal solar quote, but we recommend going through this process with a few different installers in your area. Getting multiple quotes is always a good idea because it lets you choose the best value.
Some companies might offer discounts or deals as well to compete with other providers if they know you’re shopping around.
While you’re reaching out to solar installers to get quotes, you should be including all of the equipment you want to be installed in your request. All solar systems include panels and inverters, but there are add-on products you can buy as well that expand your system’s capabilities.
Below are some of the more popular add-on products in Oklahoma that you may want to consider:
When you’ve found a solar contract that meets your needs and fits into your budget, you can proceed to sign it and get the installation process underway. We’ll explain some of the most important things to look for in your contract to ensure you get favorable terms below.
Since solar equipment is so expensive, we recommend checking your contract for the warranty terms, which help protect your investment. Three types of warranty coverage can be included, and the best solar companies will offer all three for total peace of mind. Below are the three types and a brief explanation of what they cover:
You should plan on waiting between three and six months between the day you sign your solar contract and the day your panels are commissioned and activated. The actual installation process takes only a day or two in most cases, but other things take some time. The longest delays will usually come as a result of the following:
You might also see weather become a factor, but strong winds and thunderstorms that are prominent in the area should only cause minor delays.
An important part of getting your panels installed properly is getting building permits for the installation and the electrical connection. Permits are governed by individual municipalities, so the process for and cost of pulling permits can vary based on where you live.
Your solar contractor should be the one to file and set up any inspections that might be required. However, you will need to pay the fee for the permits, which varies based on your location, and you might need to be home during the inspection to provide interior access.
For example, Oklahoma City only requires an electrical permit, which comes with an average fee of $55.9 The City of Tulsa charges a $50 base fee plus $4 for the electrical fee ($54 total).10 The City of Norman has a free online application for solar permits, but you’ll also need an electrical permit, which averages around $40.11,12
Some municipalities will have fees significantly higher than these, but yours will likely fall between $25 and $200. You can ask your contractor for a fee schedule, or you can check your solar proposal, as the fees should be included there.
Your solar power system installer should also file for interconnection on your behalf. Interconnection is the policy that governs how your panels interact with the power grid, so it’s required for a grid-tied system and to take advantage of net energy metering.
Most utility companies in Oklahoma will have a simple interconnection application, which rarely comes with an application fee.
Liberty Utilities, for example, has an online application that your installer can fill out.13 There is no application fee, and the company notes that the review process can take between ten and 90 days.
PSO also has a convenient online application that comes with no fees.14 Just about every residential solar system will be under the 25 kW mark, which means they’ll be eligible for an expedited review process that should take minimal time.
OG&E has a lengthy application available online, but your installer will be filling it out for you anyway.15 There is no fee to apply, and the company doesn’t mention expected wait times for review and approval.
After the installation is completed, your utility company will also need to conduct a final inspection to make sure the connection to the grid was done safely and up to code.
Applying for interconnection adds minimal time to your installation timeline, although waiting for the inspection can take weeks in some cases, depending on how backed up your provider is. Still, it’s worth the wait, as interconnection will give you access to NEM, if it’s available, maximizing your savings over time.
After permits and interconnection are all taken care of, your installer will get your installation scheduled. On the day of the installation, your team will arrive in the morning and will likely be there working through the afternoon. Solar installations take between 5 and 10 hours in OK, on average, given the large system size requirements.
Most customers wonder, “do I need to be home for solar panel installation?” The answer is yes; you or another adult should be home for the entirety of the installation. The technicians will need access to your home at some point to make the connection to your electric panel, and they might also need access to install your panels or add-on products.
The company might schedule the inspection with your electric company on the day of your installation to expedite the interconnection approval and commissioning of your system. Solar inspections take about a half hour, on average, so this can add to your installation timeline.
When your panels are installed, your solar contractor should schedule the final inspection with your local building department.
This inspection helps your local government keep track of work being completed in the area, and it’s also necessary to close out your permits. Open permits can cause issues with home resale and could lead to building department violations.
This inspection usually doesn’t come with any fee, and your installer should be the one scheduling it. Some building inspectors will do an exterior inspection if you only install panels, while others will request interior access, especially if you have add-on products inside. You might need to be home to provide access, in which case your installer will coordinate the inspection.
The only time you’ll see a fee for an inspection is if you have a scheduled appointment and miss it. The fee can range from $20 up to $100 in most cases, so it’s important to be present so that you don’t have to pay for a re-inspection.
After the inspection is completed, you’re on your own to monitor your Oklahoma solar panel system and make sure things run smoothly. Some panel manufacturers — like Tesla and SunPower — will couple a free monitoring app with their equipment. You can ask your installer if you have access to an app and they should help you get it set up.
Finally, your utility provider will need to inspect the system to make sure it’s connected to the grid safely. Your installer will schedule this inspection as well and some schedule it on the installation day to expedite the approval.
Once your electric company signs off, you’ll receive permission to operate (PTO), which is your formal approval that you can activate your system.
At this point, your installer should turn your system on, show you the emergency shut-off outside your home, and provide you with information about solar monitoring software, if it’s available to you.
Going forward from this point, you should make sure you have emergency contact information for your energy company. If you experience a life-threatening issue, like an electrical fire or severe system malfunction, you should dial 911 and then call your utility company to report the problem.
Below are emergency numbers for the larger electricity providers in your area:
At this point, your hard work should be paying off. Your system will be providing power to your home and should be generating NEM credits for you if the program is available to you and your system is sized appropriately. You very well could be enjoying the perks of energy independence at this point.
It has likely taken months to get to this point, but you’ve reduced your carbon footprint, cut down on CO2 emissions and have done your part to contribute to the clean energy movement.
You’ll see the highest savings if you continue to live in your home and use your panels to offset your electric bills. However, you should still see an ROI if you sell your home, as panels make your home more valuable.
Below, we’ll answer some questions we often see from Oklahomans who are considering converting to solar.
Yes, homeowners associations (HOAs) do have the authority to ban PV panels in Oklahoma. The state is one of the few that haven’t passed solar rights laws yet, which means you’re not guaranteed to be able to convert to solar. HOAs and other governing bodies can restrict or prohibit solar adoption.
Solar isn’t as valuable in the Sooner State as it is in many others for two primary reasons.
First, equipment costs are high due to above-average size requirements. Second, the state has invested heavily in wind power, and the relatively few solar incentives are helpful, but they don’t save you as much as they would in other states with more robust tax incentives and solar rebate programs.
With that being said, solar is worth it for most OK residents, as systems in the state usually pay for themselves and then save an additional $14,000+. The high energy demands and abundant sun in the state make for a decent return on investment.
The average lifespan for solar PV panels is around 25 years, with some lasting up to 30 years or beyond. Oklahoma sees some extreme weather, including tornadoes and intense thunderstorms, which can put your panels at risk of damage. Still, most Oklahoma homeowners should see between 20 and 25 years of panel life.
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