Home Solar in Oklahoma:

Local installers, tax credits, and rebates.

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Oklahoma residents who experienced power outages in a span of ten years¹


Prices have fallen 54% over the last 10 years²


Average yearly savings for homeowner's who switch to solar³

Oklahoma Solar

In Oklahoma solar power is emerging as a cost saving and sustainable solution for homeowners. Despite being renowned for its oil and gas industry, the Sooner State is embracing the power of the sun to diversify its energy portfolio and contribute to a cleaner future. With abundant sunlight throughout the year, Oklahoma holds significant potential for harnessing solar energy. As the state's residents, businesses, and communities increasingly turn their attention to solar panels, its policies, financial incentives, and a growing awareness of environmental benefits are driving the adoption of solar energy across the region.

Let’s learn about home solar incentives, the utility policies associated with interconnection and setup, and solar financing plans for solar panels and battery systems in Oklahoma.

Incentive Programs, Tax Credits, and

Solar Rebates in Oklahoma

Federal ITC - 30%Solar PV systems installed in 2022 - 2032 are eligible for a 30% tax credit. The credit can only be claimed by on the original installation of the solar equipment located at a residence of yours. You must also purchase it using cash or financing, but you're not leasing the system or paying a solar company for the electricity produced by the system.
Instant Rebate from EnergyPalEnergyPal secures group discounts by leveraging the depth of our network. We pass these savings onto homeowners every day!

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Oklahoma provides multiple solar energy rebates and incentives that help to reduce the overall cost of solar systems. Our EnergyPal Advisors can help you navigate all of the solar incentives available in Oklahoma and also apply them to the available solar panel offerings.

In summary:

  • Oklahoma offers a $1,000 rebate on a solar system and a $500 rebate on solar hot-water heating systems. You can also get up to $5,000 off of a solar-battery system.
  • Oklahoma has Solar Renewable Energy Certificates (SRECs) that vary in value.
  • No sales tax on solar panels, systems and related equipment
  • No property tax on any increase in property value from installing solar

Oklahoma Rebates and Tax Breaks

Here are more details about the incentives available in Oklahoma:

  • The Oklahoma solar rebate program offers a $1,000 rebate on a solar system less than 20 kW in size and a $500 rebate on solar hot-water heating systems. Installers must have NABCEP certification. Don’t worry—our partners are all certified.
  • Oklahoma grants Solar Renewable Energy Certificate (SRECs) to those who purchase solar systems. You receive one SREC for every mWh your panels are expected to produce per year. You can keep these SRECs for up to three years or sell them on the SREC market, where their value ranges from $70 to $80 each.

For example, let’s say you need a 10 kW system and it’s expected to produce 13,000 kWh (13 mWh) per year. You get 13 SRECs per year. Say each SREC is worth $77 and you decide to cash in this year. Your savings for the year would look like this:

13 X $77 = $1,001 savings

Assuming a similar value every year and a solar system life of 20 years, this program basically pays for the value of the entire system! Plus you get highly reduced electricity bills.

  • The Oklahoma Energy Storage Income Tax Credit allows property owners to receive a tax credit of 30% of the total installed cost of a battery system, up to $5,000. The program is available on a first come, first served basis, and funding is limited.
  • The Sales and Use Tax Exemption for Renewable Energy Equipment is a tax break where you don’t pay any sales tax on solar panels, systems or related equipment in Oklahoma.
  • The Property Tax Exemption for Solar and Wind Energy Systems is a tax break where you won’t pay additional property taxes if your property value increases when you add a solar system (and with solar, your property value does go up!).

Other Solar Energy Incentives

The US federal government helps residents and businesses pay for their solar systems. The federal investment tax credit (ITC) allows for a tax deduction of 30% of the cost of a solar system currently. Tax credits can be rolled over if you can’t use the whole credit this year. The ITC cannot be claimed for solar leases or power purchase agreements (PPAs) where the third party financier takes the credits themselves, but that is typically baked into a reduced lease/PPA monthly for you.

If you purchased a $20,000 system, your savings from the federal tax credit would look like this:

$20,000 X 0.26 = $5,200 savings

You also would save an additional $1,000 by taking advantage of the Oklahoma rebate program. So if you spent $20,000 on that system, your cost would go down to $13,800. And you get yearly SRECs that can pay for the system over time.

Utility Policies

Utility policy factors determine what your utility provider pays you for the excess power you produce and what you save on your power bill by reducing electricity usage. Oklahoma gets a high score for utility policies.

Net Metering and Interconnection Policy

One important policy for solar customers is called Net Metering. Net Metering is a billing mechanism that allows solar customers to push electricity to the grid for credit that can be used later, like at night when your solar panels aren’t generating power. This incentivizes people to go solar, provides clean energy for others to use and prevents waste. Some states have poorer net metering policies than others, meaning that credits may not be able to be rolled over to the next month or year, or that you don’t earn full watt-for-watt credit for your excess energy.

Oklahoma’s Net Metering program is very favorable. You are paid the full retail amount for your excess energy in the form of a bill credit. Credits can be carried over into the next month but expire at the end of every April, when you are paid at the average commodity rate. You can cash in for up to 200% of what you consume, so you can actually get paid every year. The exact details depend on your electricity provider’s policies.

Solar Setup Fees

In Oklahoma, there are no application fees for systems less than 10 kW in size.

Electricity Prices

Electricity prices in Oklahoma are average. Usually you don’t want high prices, but with solar, the higher the prices, the more you save, and the more economical a solar system becomes.

According to the US Energy Information Administration, the average total cost of electricity in Oklahoma is $0.133 per kWh for residents. The national average for all states is $0.134 per kWh, ranging from $0.967 to $0.288 per kWh.

Rate Design

Rate designs are comprised of monthly fees and either a flat or tiered rate you pay for electricity. Good rate designs, which save you money when you conserve energy, are tiered and have low fixed monthly fees. Poor rate designs have flat rates and high fixed monthly fees. 

Oklahoma is about average when it comes to the quality of its electricity bill rate design. It has some tiered rate programs and average fixed fees (around $12–$18 per month).

You still pay fixed monthly fees when you go solar because you are still tied to the grid. Being tied to the grid is a good thing, because otherwise you might not have power at night or if your system stopped working suddenly. Even if you go off of the grid and rely on a battery source, the high cost of the battery would not outweigh the low monthly fee and the substantial savings obtained from a net metering program.

PACE Programs

PACE stands for Property Assessed Clean Energy and is a financing program for solar projects that is tied to the home instead of the homeowner. The PACE program is not available in Oklahoma.

Home Solar Financing in Oklahoma

There are three pathways to powering your home with solar energy in Oklahoma: purchasing the solar system outright, obtaining a loan for its financing, or opting for a leasing program. Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. Regardless of your choice, solar panels can reduce your home energy expenses, contributing to financial savings and a cleaner power supply. Our Energy Advisors can guide you to the best solar deals in Oklahoma. Here's a comparison:

Solar Purchase

  • Optimal Return-On-Investment
  • Potential Reduction of Bills to near $0
  • Enhances Property Value

Outright Solar Purchase: Homeowners with a stronger financial position often cover the full cost of solar upfront, yielding the highest return-on-investment over the system's lifespan. By paying in cash, homeowners in Oklahoma can claim tax credits and rebates, avoid interest charges, and directly enjoy the savings on their electricity bills. Some of our customers experience virtually no electricity expenses from the moment they install solar. We offer top-tier products at attractive cash prices.

Solar Loan

  • No Initial Expenses
  • Ownership of the System
  • Appreciates Property Value

Solar Loan Financing: Utilizing a solar loan enables you to save and own your solar system, as our financiers cover the upfront expenses (similar to an auto loan). Homes equipped with solar systems command higher value due to their lower operational costs. Depending on the chosen solar loan, you can achieve greater monthly savings or complete your financing earlier. Our team will help you secure the most favorable rates and terms to match your requirements. To learn about our latest offerings, connect with us

Solar Lease

  • No Initial Investment Required
  • Complete Maintenance Coverage
  • Lower Monthly Payments
  • Guaranteed Rates

Solar Leasing: Leasing solar panels provides an accessible and cost-effective path to solar adoption. With zero upfront costs—often referred to as “$0 down solar financing“—installation and maintenance are entirely managed, and your home benefits from the energy generated by the solar panels. You pay a consistent monthly fee and save compared to your existing electricity bill. The reduced electricity rate are what many homeowners like about this option.

Talk to your EnergyPal Advisor about financing solar options in Oklahoma. We regularly source the best deals and terms for our customers. Let us guide you through the finance and application process from A-Z.

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Frequently Asked Questions

Is it worth going solar in Oklahoma?

In most cases, yes, solar will save you a significant amount of money. Solar panels produce electricity and reduce how much power you have to purchase from your electric company. The typical homeowner in Oklahoma pays around 11.83¢ cents per Kilowatthour.

What is the payback period for solar panels in Oklahoma?

Homeowners who install a solar array sized to meet 100 percent of their energy needs can still pay off the upfront cost in as little as 5-6 years. The typical payback period in Oklahoma averages 6.3 years.

How much are solar panels in Oklahoma?

As of August 2023, the average solar panel cost in Oklahoma is $2.62/W. Given a solar panel system size of 6 kilowatts (kW), an average solar installation in Oklahoma is $11,004 with 30% tax credit applied.

What incentives are available for solar in Oklahoma?

Solar installations in Oklahoma are eligible for the 30% solar tax credit. Connect with us to learn more about all the local Oklahoma incentives, tax credits & rebates you qualify for.




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