Harness the Power of the Sun: Unlock Oklahoma’s Solar Incentives and Rebates
As the 7th sunniest state in the nation, basking in an impressive 85.35% of average annual sunlight, Oklahoma presents an ideal opportunity for homeowners to embrace solar energy. The incentive grows even stronger when considering the staggering 49% surge in electricity rates from June 2021 to June 2022, the highest spike nationwide according to the U.S. Energy Information Administration. Consequently, an increasing number of Oklahoma property owners are turning to solar power as a cost-effective solution, taking advantage of the generous solar incentives and rebates offered by national and local utility companies.
Explore the following guide to learn how to capitalize on Oklahoma’s solar incentives and rebates.
Oklahoma’s Solar Incentives, Rebates, and Benefits
Net Metering in Oklahoma
Oklahoma boasts robust net metering laws, mandating utility companies, electric cooperatives, and investor-owned entities to provide net metering services to property owners. Net metering allows you to connect your solar panels or other renewable energy systems to the public utility grid, enabling you to offset your utility bills with credits earned from excess power generation. Any surplus energy produced can be sold back to the grid, with the value applied as a credit to your energy bill. Strong net metering laws are a boon for homeowners, streamlining the process of connecting a solar system to the public grid.
Oklahoma Public Service Company (PSO) offers two net metering options for property owners: the Standard Purchase Schedule or the Net Energy Billing Option (NEBO).
Federal Solar Tax Credit in Oklahoma
Oklahoma homeowners can also take advantage of the lucrative Federal Investment Tax Credit (ITC), which provides a 30% tax credit on the cost of installing a solar panel system until 2032. For example, if you purchase a $20,000 solar energy system, you can claim a federal solar tax credit of $6,000, reducing your federal income tax for the year you installed the system. However, note that the tax credit is only available to those who own their system, either through cash purchase or a loan, and not to those who lease. If you lease a system, the solar incentives go to the third-party owner, making ownership a more advantageous option.
In 2033, the Federal tax credit will decrease to 26%, and in 2034, it will further reduce to 22%.
Local Solar Incentives and Rebates in Oklahoma
While the state of Oklahoma does not currently offer additional solar incentives and rebates, numerous local utility companies provide incentives for energy-efficient upgrades that your solar installer may qualify for. These companies include:
– Edmond Electric: Offers incentives for energy-efficient improvements such as ceiling insulation, geothermal heat pumps, and air-source heat pumps.
– Oklahoma Electric Cooperative (OEC): Provides rebates for purchasing heat pumps, including geothermal, air-source, and electric water heaters.
– Oklahoma Gas and Electric (OG&E): Offers financial incentives for energy-efficient practices like LED lighting, insulation, Energy Star windows, and air conditioner tune-ups.
– Oklahoma Municipal Power Authority (OMPA): The WISE Rebate program offers rebates on various HVAC equipment, including geothermal and air-source heat pumps, dual-fuel systems, and ceiling insulation.
– Public Service Company of Oklahoma (PSO): Grants comprehensive rebates for a wide range of appliances, HVAC equipment, and building insulation measures.
– Verdigris Valley Electric Cooperative: Provides incentives for purchasing energy-efficient home equipment such as smart thermostats and heat pumps.
Oklahoma Solar Incentives and Rebates at a Glance
The adoption of solar energy systems in Oklahoma is on the rise, and property owners in the Sooner State can continue to reap the benefits of going solar! Consulting with a reputable solar company is recommended to ensure you make informed decisions and maximize your savings.
