Reduce Cost of Solar Panels in Oklahoma: Solar Incentives, Tax Credits

There is a rich oil and gas industry, no doubt, but solar power is gradually changing the minds of investors and homeowners alike. Are you tired of the high energy costs and want a way out, or maybe are looking for a way to have dependable energy that is off grid?

It is true that solar installation can cost you a pretty penny, but not always.

The government and utilities are working non-stop only to help reduce the cost of solar panels in Oklahoma; solar incentives, tax credits, rebate programs, and more have actually gone a really long way to achieve that goal.

This guide explains exactly how you can use these incentives to install solar panels in your home.

Solar Power Oklahoma: Solar Farms and Plants

Solar power is making waves all across the country, and more and more homeowners are changing their minds about it, certain that they want to do away with grid electricity and fully embrace renewable energy.

Unfortunately, in matters of the adoption of solar power, it is clear to see that some states are doing better than others; sadly, Oklahoma is not one of them.

The state has shown a lot of improvement when it comes to wind energy, which shows by the 24% of all energy use in the state,⁴ but solar is kind of lagging behind at this point. Based on findings from the Solar Energy Industries Association, Oklahoma comes in at number 45 in the entire country with only 0.18% installations, ahead of just a few states.

Therefore, it is not really one of the best states for solar power but wait, before you change your mind, you would want to know that there is a lot of potential.

As of 2022, there was at least 112 MW of solar energy coming from solar farms in Oklahoma, and if the reports are right, the state could increase this capacity to as much as 2000MW just in the next half a decade with the development of a solar park and solar farms.

The Choctaw Nation Solar Farm is a testament to this, being one of the largest installations in the state, able to produce 6.1 MW of power.

Again, SEIA states that the solar market in Oklahoma is likely responsible for the employment of almost 1,000 people all across the many companies that are operating in the region. What’s more, there has been a total of a whopping $189 million invested in the sector alone, and if that doesn’t show great potential, well, nothing else can.

Leave alone that, there is another reason why many Oklahomans are opting for solar as an excellent alternative for renewable energy,¹¹ solar rebates from the government. It has worked for other states and seems to be doing the same for Oklahoma.

Although there is not that much to work with, you will still have a few Oklahoma solar incentives from the government as well as from the local level to get you started on your solar power journey.

Therefore, the cost of solar panels in Oklahoma is not as high as you might have been led to believe. As a matter of fact, the prices have dropped by more than 50% over the past 10 years or so, and now is somewhat the best time to dip your toes in the solar market.

Going by what exactly is happening in other states, you will not regret it one bit.

How Much Are Solar Panels in Oklahoma: Cost of Solar Panels in Oklahoma

Are you focused on going solar? Then it is obvious that you will be keen on what you are expected to pay for it.

You know by now that the project is an investment, maybe even one of the most important ones that you will ever carry out for your entire house. But before you commit to the entire process, you want to know just how much it will cost you.

The cost of solar panels in Oklahoma is not that bad, but in all honesty, it is slightly higher than the price in many states. For you to fully go solar, the entire system will cost you as much as $28,800, but not always, that is the rate for a typical 11 kW setup, which many people go for.

On the other hand, if you are going for a less elaborate system for your small household, say an 8 kW one, you may be able to save more money and only part with about $20,000.

Please bear in mind that these are only rough estimates, and you can even spend way less if some factors come to play. However, how does the cost of solar panels in Oklahoma play out against the national average?

If you take a closer look and conduct more research, you will find out that the rates are about 20% higher than the national average or what you would be expected to pay in most areas.⁷

But what gives? How come it is more expensive?

There are a few explanations for this. For one, the energy needs in Oklahoma are higher, and as such, most homeowners have to go for larger and of course more expensive setups.

Another very logical explanation is the fact that there is not a lot to work with really when it comes to Oklahoma solar incentives, therefore, residents don’t end up saving as much money as they would have hoped.

How To Use the Solar Panel Cost Calculator Oklahoma

If you are a keen buyer, the last thing you want to do is go in blind when buying solar panels in Oklahoma. You want to know what to expect from the solar market, whether there are better deals somewhere, and whether you will save some cash in the process.

The best way for you to do that is by finding out how much the system is going to cost you, and a solar panel cost calculator will get this job done.

This is supposed to give you an idea, no matter how general it will be. There are so many software online, using various algorithms and they seem to be very effective in giving you the cost estimates that you need.¹²

All you have to do is to find one that is clear, simple, detailed, and accurate, so how do you know that it will work?

Simple, check its methods. A great calculator should be able to ask the right questions and touch on the most important aspects first.

You will want to go for one that asks the crucial details, like your location (where you will have the panels installed), your monthly energy needs (you can use your previous monthly bills for this), and basically any other important concern, that is based on how the software is designed.

A great system design is supposed to give you detailed information, from how many panels you will need, the amount of energy the system should be able to generate, and most importantly, how much it will cost you. It is this information that you will carry with you when you make your first solar system purchase.

What Determines the Cost of Solar Panels in Oklahoma?

Believe it or not, the cost of solar panels in Oklahoma is one of the deciding factors for which people choose whether to go solar or not in the first place.

The impression that most people get before converting is that the project is too expensive.

It, therefore, comes as a shock to find out that it doesn’t really have to be, that there are several factors that come into play to actually lower the cost.

Here are a few instances where you will end up paying way less for solar panel installation in Oklahoma.

1. If you need a small system: If you have low energy needs and your monthly utility bills are not atrociously high, then you are in luck because the installation will be a breeze for you. The size of the panels is a big deal.
   Why, because the bigger you go, the more expensive it gets. If you need a 7 kW system, you will end up paying less in comparison to another homeowner that needs a 14 kW setup.
2. If you go for a lower-quality system: Of course, like any other product you buy, there are different types of solar panels, some of better quality than others. If you are very keen on the efficiency rating, durability, or any other quality that makes the perfect solar system, you will have to pay up more to get exactly what you want.
   However, if affordability is the biggest deal for you, there are also panels that will easily fit within your budget.
3. If you opt for conventional roof mounting: Did you know that there are ground-mounted solar panels and those for car mounts? These modes of installation are a bit more complicated and need outstanding tools and exceptional installers.
   That is why they tend to be more expensive. If you are on a budget, you can always go for the traditional roof mounting, that is unless your roof space is not sufficient or there are other issues that will force you to go for a different installation method.
4. If you have a simple metal roof: You will notice that the more complicated the installation is, the more money you will have to pay for your panels. In this case, your roof design is a factor because you will pay less if you have a metal roof,¹³ why?
   Because the racking will be simple and fast. However, for shingles or flat roofs, that require a little more work, you will have no choice but to pay up more.⁸

What Are the Oklahoma Solar Incentives and Rebates for Solar Panels Available?

Oklahoma solar incentives are just the thing that homeowners need to give them the motivation to go solar. It is clear to see that cost is a huge factor for Oklahomans, therefore, telling them that there is a possibility of them paying less for their systems is a huge leg up and maybe, just maybe, may make them change their minds and finally go solar.

There may not be as many incentives and rebates as those that are in other states, but it doesn’t mean that the ones in Oklahoma are of no help. You can make use of the following incentives to reduce the cost of solar panels in Oklahoma.

Federal Solar Tax Credit

Check any compilation of available solar incentives in virtually any state and see how the federal solar tax credit pops up at number one.

It is currently one of the most famous programs from the national government and people honestly can’t wait to get their hands on it; it makes you wonder, what’s so special about it?

Well, imagine an incentive that gives you 30% off your installation. Who wouldn’t be in a hurry to apply for this one?

The ITC (Investment Tax Credit), as many like to call it, is a program that was launched way back in 2005 to urge more Americans to convert to solar power. The plan was to have it phase out slowly from the year 2021 and be over by 2024, but the Inflation Reduction Act of 2022 said no, that it has to continue for the next decade.

This was the best news ever for the entire solar market because, for the first time, there were more people actually willing to invest in solar power, knowing fully well that the government will have their backs and relieve some of the burden. This is no mean feat because, given the slightly high cost of solar panels in Oklahoma, it technically means that you will be able to save even as much as $8,000; trust there is no other program that is that lucrative in the state.

The idea was that the money would come out from the taxes that an individual owes the government. Therefore, don’t rush applying expecting you will get cash at the end of the year, not really.

It is a relief on your taxes of 30% of how much the installation cost you, and not exactly a cashback, but still attractive nonetheless.

Net Energy Metering Oklahoma (NEM)

There is more great news for Oklahomans because the countrywide famous net metering also works in the region. NEM is not exactly as lucrative as the ITC but it is still famous among homeowners.

Hearing about it for the very first time? Not to worry because it is pretty simple and straightforward.

Basically, NEM Oklahoma is a billing method that helps all solar system owners make the most use of the power that the panels provide.¹⁴ When installing your system, the net metering option will come up and you will be given a choice to either go on or off the grid, entirely your choice.

If you want to connect to the local grid system, you are literally selling any excess power that your system generates to the utility provider.

You will not earn money though, what you will get in return is credits and it will be entirely based on just how much the system is capable of producing in terms of kilowatt-hours; the more power you are able to send, the more the credits.

It seems like a sensible thing to do because your panels are more than likely to produce more power than you really need, so why not put them to good use? That’s the whole point of energy efficiency, right?

The credit that you receive can actually go a long way to save you money on energy bills in the near future. Net metering is a great option because it provides you with access to solar power when you need it the most,³ say at night or when the weather is not really working for the panels.

However, note that the credits tend to vary with time, and in fact, more often than not, the value of the credits will be lower than the regular retail price in most states.

Local Oklahoma Solar Incentives

The reason why you can say that there is not really much to work with when it comes to the Oklahoma solar incentive is because there are no strong RPS goals in the state, at least not since the year 2015 when the goals expired. One of the many consequences of this is the fact that there are very few local incentives available for new solar panel buyers.

The following are the ones that are being offered at the local level by various utility companies.

• Incentives from Oklahoma Electrical Cooperative (OEC): If you are a proud OEC customer, you will be very glad to know that the company has some cash back for you, just as long as you install renewable energy systems like solar water heaters and heat pumps.
• Ways I Save Electricity (WISE) program: WISE is the brainchild of the Oklahoma Municipal Power Authority, and like the above, it is also a cash-back opportunity that you can make use of just by installing solar-powered systems.
• Incentives from Edmond Electric Efficiency: If you are a customer of the electric company, you are also able to receive rebates for simply installing energy-efficient systems.
• Verdigris Valley Electric Cooperative: Another utility company that has your back is this one and like the other ones listed, it also has programs where the customers can receive rebates for their solar system installations.

How the Federal Solar Tax Credit Works as One of the Oklahoma Solar Incentives

The federal energy credits may be the most famous Oklahoma solar incentives, in fact, it is known in the entire country and has built a solid reputation over the last 2 decades of operation.

However, not many people know how it works, or at least have their facts right about the do’s and don’t before they apply for the incentive.

There is quite a lot that you will realize about the ITC.¹⁵ For one, this incentive is a tax credit, and what that simply means is that you will not ever get a cashback.

The 30% off from your installation comes to you in terms of tax relief, meaning you won’t have to pay for that amount in your taxes. Which leads you to a very crucial question, how does the solar tax credit work if I don’t owe taxes?

If you are not a taxpayer, or if you don’t owe the government any money, there is absolutely no way that you can get your hands on the tax credit, much less apply for it. With the way it was created way back in 2005, that is basically how it works and you cannot use it as a cash back, or expect a check.

Apart from that, there are also a few more things that need ironing out when it comes to the ITC, the criteria for application.

Of course, you want the best shot at receiving the credit, but that will only be possible if you meet the requirements. For one, and many people seem to fail to pay attention to this; you have to complete the project first before you can be able to apply for the incentive, because how else will the 30% be calculated?

Apart from that, also note that the system that you install has to be brand new, straight from the shop. You cannot use a friend’s or neighbor’s system and pose it as your own.

There are also strict rules about the property being used for the installation, which is supposed to be a home that you own. If you get these right, you will be a step closer to achieving the best Oklahoma solar incentive ever.

Is There an Oklahoma Solar Tax Credit?

Do you find the solar tax credit enticing and likely able to change your mind about going solar in the future? Now take a moment and imagine having two of such programs, one from the federal government and another local one from your state.

Lucky are the states that have this additional statewide tax credit because in most cases, it means slashing more than half of the cost; there is certainly no better deal than that.

Unfortunately, there is no such credit for Oklahomans. In fact, the local incentives are already not enough and you as a resident will have to make the best use of the ones that are available.

That is unless the state decides to implement any other program of the sort. Good for the residents of states that have implemented their own solar tax credits.

For them, it literally means that they will be able to apply for the two credits at once and have a great shot at receiving both of them. This should go to explain why there are more solar installations in these regions because no one would pass up such an offer to pay only half of the installation cost.

It is pretty easy to see why these states are some of the best-ranked when it comes to solar installations.¹⁶

How Does Net Metering Oklahoma Work? Does It Reduce the Cost of Solar Panels in Oklahoma?

Oklahoma net metering is not exactly straightforward as it is in other states.

For one, you will realize that according to the law, all utility companies, the investor-owned ones for that matter, are required to offer incentives to the people.

However, unfortunately, not all utilities are able to accept applications, only a few do and even so, there are still some issues surrounding it.

Those that allow customers to connect to their grids and earn credits usually offer their costs at basically avoided rates, which means that you will not get as much as you may have hoped; it will likely not be at the standard retail rate. There are also two ways to earn credits, you can either receive them based on annual rates that are set by your utility provider or else go for a system where you earn more based on increased time-of-day tariffs when there is more surplus from your panels.⁵

However, it is very important to note that the rates that you get are not fixedsolar park and that there are very high chances that they will keep changing over time based on legislation and other factors. But, you are still going to save a lot of money because the credits will be sufficient to pay for most of your energy bills if not completely offset them.

By doing so, you are also able to reduce your solar repayment period, that is depending on how much power you are likely to produce. One more very important thing to note is the existence of the Oklahoma solar surcharge and residents are not huge fans of it.

In this new law that was signed only in the year 2022, anyone that wants to link to the grid will be expected to pay a certain fee to have that right.

Which Oklahoma Solar Incentives Are the Best?

By now, you must have noticed that Oklahoma is not very generous in matters of solar incentives, but at least there are a few options that have done a great deal to help reduce the cost of your installation. Out of those, two seem to stand out more, and many homeowners swear that they have helped them save a great deal of money.

Of course, the first in line is the federal solar tax credit, known all through the country for just how much it is able to slash from your installation cost. There is no other incentive that will reduce the cost of solar panels in Oklahoma by as much as 30%.

Using $28,800 as the average cost of panels in the state, 30% roughly translates to more than $8,000, you can’t miss that.

Another deal that you want to land is net metering, and you will be lucky if your utility company provides it at a reasonable rate. In this way, you will finally be able to reduce or eliminate your energy bills and you can start to shrink the repayment period of your panels as soon as possible.

Perhaps the best feature about this is the fact that you will not have to buy a battery system as a backup, which reduces the total installation cost.

You can simply connect to the grid and have power when there are weather issues interfering with the efficiency of the panels and at night when of course there is no sunlight.¹⁷ It also helps that connecting to the grid is not as complicated as you might think because your panel installer will be more than willing to help with everything to get you started.

RPS Goals and Oklahoma Solar Rebates

First things first, what are RPS goals, and why are they so important in the solar market?

Well, the Renewable Portfolio Standards are regulations laid out by the state that mandates utilities to make sure that a certain percentage of their power comes explicitly from renewable sources,²⁰ be it wind, solar, or any other.

If the RPS goals are strong and strict, with higher quotas expected, utilities have no other option but to comply. If they fail, they will be in a great deal of trouble, paying very high fees as penalties.

Therefore, to avoid such issues, the companies would have to find ways to meet the demands, and in most cases, it means making net metering more attractive so as to increase the amount of solar power that they are able to produce.

Unfortunately, that cannot be said for Oklahoma and it explains why net metering policies are not that great. The RPS goals for the state stand at 15% since 2015,⁹ which has been pretty easy for companies to meet.

So what has that got to do with the solar rebates in Oklahoma? There is a direct connection between the two.

You see, now that the voluntary RPS of the state is more relaxed, utility companies don’t have to struggle so much to make the market more affordable to invest in. Otherwise, had there been strong RPS, they would be forced to come up with much more solar rebate programs to encourage more people to go solar and be their sources of renewable energy to help them meet the strict quotas.

Is Solar Oklahoma a Great Idea? Does It Save You Money?

It is OK to be undecided about whether you really want to make the switch or not.

It is understandable because the project doesn’t come cheap; you will have to dig deeper into your pockets or even apply for a loan to afford it.

This is why you may actually need more convincing before you take the dive into the solar market.

Maybe the reasons below will sway your decision:

Low Energy Costs

This is probably the main reason that you would want to go solar, and that is the top answer for many homeowners. They want to reduce their electricity bills, which makes a lot of sense considering that the electricity rates in the region rose by a record 19% in just one year.¹

Therefore, when you go solar, you can bid farewell to these atrocious grid electricity bills and become fully dependent on your own system.

Going Solar Is the Kindest Thing You Can Do for the Planet

Are you eco-conscious, worried about your carbon footprint and how your activities negatively affect the environment? You won’t have to worry about using fossil fuels if you go solar.

The carbon footprint solar panels are lower than that of conventional grid electricity,¹⁸ and you will be doing the planet a huge favor by doing away with power from fossil fuels.

But what about the panels and the batteries themselves? Doesn’t their manufacturing have a high carbon footprint, you may ask?

This is also true because they are products made in high-emission factories, but still, remember that these products are recyclable when they reach their end of service, which makes them greener than fossil fuels.

Your Home Value Will Increase

Maybe you have plans to resell and want to do home renovations here and there to help bump up how much you will end up getting.

Did you know that you can do that by simply installing solar panels? Yes?

How much does solar increase home value, then, you may ask. Your resale rate may rise by at least 4% unless you live in high-cost areas like Stillwater and Elk City, for which you will fetch a pretty sum for your solar-powered home.

Should You Buy or Lease a Solar Power System in Oklahoma?

Again, going solar is supposed to be a careful decision and the first thing that you want to do is lay out all the cards and consider all the available options, especially when it comes to financing.

Do you have the money that is needed to fund the entire project?

If so, great, but if not, you may have to take into account options like solar leasing.

What is that and how will it help you save money? Imagine zero upfront costs.

That is exactly what you get by opting for a solar lease. So what happens is that you sign a deal with a solar company and let them do the entire installation for you and at very little or even no cost whatsoever to you.

There is only one catch; you will have to pay for the power that you receive at the end of each and every month.

It sounds attractive, yes, but there are a few downsides. The system will never ever be yours; it will always be a product of the company that had it installed.

Therefore, automatically, you are shut out of the federal solar tax credit. On the other hand, you can pay the entire cost either using your savings or a solar loan, but it means full ownership and the right to apply to as many Oklahoma solar incentives as you want, so the decision is entirely up to you; will you buy or lease?

How To Buy Solar Panels in Oklahoma

If you are starting to get swayed and are inclining more toward making the conversion to solar power, you may want to check out the various ways that you can use to finance the system. Remember that it can be costly, that is depending on several factors, and that is why you want to find out exactly which option will serve you perfectly.

• Cash: Of course, the most obvious number one way to go is to pay the full amount, all of it in cash; you can take out your savings for that, avoid any interest costs, and save a lot of time. And this way, you will be certain that you have full ownership of the panels, and it helps that you can start counting your savings as early as day one.
• Solar loan: What happens when you can’t afford the entire amount upfront? You can always opt for a solar loan instead.
  You will only cater to the low, upfront costs but brace yourself for the interest rates involved.
• Solar lease:¹⁹ This is another method where you can potentially eliminate all the upfront costs and have the solar company install the system for you. The only problem, though, is the fact that the system will never be fully yours, and you will have to pay a fee each and every month.²

Tips To Reduce the Cost of Solar Power of Oklahoma

If you are still kind of worried that the cost of solar panels in Oklahoma is too high, you will be excited to know that there are a few tricks that you can use to reduce the cost by as much as possible. When it comes to going solar, you want to get as many discounts as you can get because they will all definitely add up in the end.

For one, you can start by taking your time to do your due diligence, carefully check out the solar companies near you and compare their prices, and you might just get a great deal for panels that are still very efficient. The second thing, although this might seem a bit weird, is that you should prioritize paying in cash as much as you can.

Yes, the upfront costs may seem high, but not as high as how much it will cost if you add up interest rates from solar loans. The third way to save some extra cash is by actively seeking out any available solar incentives in the area.

You can start with the one that you know, like the ITC, but then again, there are chances that your local utility has some rebates of cash-backs that could go a long way.

Before You Install Solar Panels Oklahoma

Excited about going independent of the grid and relying on your own system to provide the power to run your house?

That is expected, but before you start shopping for panels and all that is needed, you might want to take a break and consider certain factors, some of which may negatively affect the entire project.

Is Your Roof Okay?

The reason why this is important to consider is that the panels are supposed to go on your roof, right? That will be virtually impossible if they are not in great shape, and the installer will actually decline and advise you to make necessary adjustments first, maybe repair old sheets or sometimes even the entire roof first.

Do You Get Enough Sun? (Sunlight Hours in OK)

One of the best aspects of going solar in Oklahoma is the fact that there are so many sunny days, about 234 to be exact, that is in contrast to the national average of 205. This basically means that sunlight is not supposed to be a problem for you. This explains why you want to make sure that your roof has an excellent angle and that there are no shading permanent objects around that will interfere with the sun’s rays.

Will HOA Rules Be a Problem?

It matters a lot that you check whether there are going to be any restrictions from your HOA about setting up the panels. You should check that before they ask you to take them down, which would mean a lot of money wasted.

How To Get Free Solar Panels Oklahoma

There are so many ways for you to finance your solar panels;¹⁰ if you cannot afford it, there are always going to be solar loans and leases to help you reduce or eliminate the total upfront costs.

On the other hand, you just can’t help but wonder how to get solar panels for free.

Of course, it would come as a huge relief, allowing you to focus attention on other less expensive aspects of the installation.

It would be perfect if there were an Oklahoma solar program that would help in any way to make energy more affordable for people, especially those from low-income communities. Unfortunately, there is none available at the moment, and the best you can get in terms of price reduction is the few available Oklahoma solar incentives.

Another thing that comes pretty close to free solar panels is solar leasing. That is where you get a company to install the entire system at no cost to you.

Well, technically, the panels will be free, but the only difference is that you will have to pay a fee at the end of the month as compensation for the power that you receive.⁶

Is the Solar Panel Installation Cost Oklahoma Worth It?

Are solar panels worth it in Oklahoma? This is the ultimate question that you want to ask before you can finally make the decision to switch.

Perhaps the main concern, as with many buyers across the country, is why are solar panels so expensive. It bothers a lot of people because it is a five-figure investment that sometimes means taking out virtually all your savings or getting a loan to cover the costs.

First of all, the cost of solar panels in Oklahoma is not as high as you might think. In fact,²¹ may even be cheaper in comparison to other states.

The price point, therefore, should not be an issue because you can imagine how much you are going to actually save in the long run. Besides, if you cannot afford it, there are always loans and leases that you can always take out.

There are also chances that you can further reduce the cost by opting for Oklahoma solar incentives, which have so far proven to be very helpful indeed for new solar owners. Think about just how much you will save instead of paying extremely high power costs.

It means complete independence from the grid, especially if you invest in a battery, and peace of mind that there will be no power outages. It is for these and many more reasons that investing in solar in Oklahoma is worth every single penny.

You don’t have to be conflicted when it comes to deciding whether to make the switch to solar or not. There are so many reasons to support the move, and you will never regret it.

What about the cost, you may ask? The solar installation costs are nothing in comparison to exactly how much you are actually going to save in the long run, money that you would have used to pay for the extremely high energy bills.

You should also know that there are a few Oklahoma solar incentives that can go a long way to help reduce the cost of solar panels in Oklahoma; all you have to do is apply for them and hope that they will be successful, easing some of the burdens.

Frequently Asked Questions About Oklahoma Solar Incentives