Oklahoma’s Key Solar Incentives: A Breakdown

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Oklahoma may not be widely known for its solar energy, but it offers a variety of incentives that make going solar more affordable for residents and businesses alike. With a combination of federal tax credits, net metering policies, and utility programs, Oklahomans have multiple options to reduce the cost of solar installations and maximize their energy savings. In this guide, we’ll break down the key solar incentives available in Oklahoma, explaining how they work and how they can help you benefit from solar energy while supporting a more sustainable future.

The Residential Clean Energy Credit

The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.

To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.

Net Metering 

Certain Oklahoma residents can take advantage of net metering, a program that channels surplus energy generated by your solar panels back into the grid. In return, you receive credits for this excess energy on your energy bills.

Presently, the Oklahoma Corporation Commission mandates all investor-owned utilities, such as Liberty Utilities, Public Service Company of Oklahoma, and Oklahoma Gas & Electric, to offer net energy metering. However, some individuals may incur a fee to enroll in the net metering program. Moreover, the state does not factor in the full retail price of the energy your home generates, resulting in net metering offering comparatively fewer savings compared to many other states.

Solar for All

• The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development. 
• The Clean Energy Fund of Texas (TxCEF), in collaboration with the Bullard Center for Environmental and Climate Justice at Texas Southern University (BCECJ), collectively known as CEFBC, is dedicated to deploying technical assistance, private capital, and grants to minority-serving institutions. Together, these organizations aim to facilitate the establishment of residential-serving community solar projects in low-income and disadvantaged communities that face significant challenges related to energy policy and grid vulnerability. These projects are anticipated to result in emissions reductions, savings on household utility bills, generation of shared revenues through community ownership, and the mobilization of private capital. 

Disclaimer

The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.