Oklahoma solar incentives
Oklahoma solar incentives and tax credits
Understanding Oklahoma solar incentives
There’s plenty of reasons to go solar in the Sooner State. With over 230 days of sunshine every year, Oklahoma is a great state to help power your home with a solar energy system. But just in case bountiful sunshine isn’t quite enough to convince you, the U.S. government and the state of Oklahoma have a bunch of other reasons. There’s growing interest in the many solar incentives available. As part of one of the most trusted companies in America, ADT Solar can get you up to speed on federal tax incentives, net-metering policies and more. So, let’s take a look at the ways Oklahoma solar incentives can help you pay for your solar energy system.
Federal solar tax credit for solar panels in Oklahoma
The federal solar tax credit, also known as the Investment Tax Credit (ITC) is part of the 2022 Inflation Reduction Act. It’s designed to make going solar easier and less expensive.
It’s pretty simple. If your system qualifies for the federal solar tax credit, you can claim up to 30% of your solar system’s cost as a credit.* The federal Investment Tax Credit is set up to reward homeowners for going solar all the way into 2032.
Here’s how it works: If your qualified solar energy system costs $30,000, your federal income tax bill will be reduced by $9,000. If the credit is larger than your federal tax obligation for the year, the remainder can be carried over as a credit for the next tax year.
Want to learn more about how the federal solar tax credit can help you save? Explore our detailed guide on how the federal solar tax credit works.
Eligible costs associated with going solar include:
- Cost of solar panels
- Supporting equipment costs, such as microinverters, necessary wiring, mounting hardware, etc.
- Installation and labor costs, including inspection and permitting fees, as well as developer fees
- Solar battery backups or other energy storage systems with a capacity rating of at least 3 kilowatt-hours (kWh)
- Sales taxes that were paid for any eligible solar-related expenses
Net metering in Oklahoma
When the sun is high, a solar energy system will often generate much more energy than the home uses. Net metering is a billing arrangement that allows you to send that excess energy back to the grid, earning credit on your utility bill.** This process enables your electricity meter to spin backward, providing you with financial benefits.
How it works:
The Oklahoma Corporation Commission requires all investor-owned utilities to use a net-metering rate based on “avoided cost.” That means they have to pay the same amount for electricity you generate as they pay to other energy suppliers.
The major investor-owned utilities in Oklahoma are:
- Liberty Utilities (formerly Empire District Electric Company)
- Oklahoma Gas and Electric (OG&E)
- Public Service Company of Oklahoma
Other local utilities, such as cooperatives and municipally owned companies, are not subject to the same rules.
When it comes time to connect your home solar energy system, your solar installer will work with your utility to make sure you’re set up for net-metering if you qualify.
How does net metering impact my savings?
Net metering ensures that you receive credit for the excess energy your solar panels produce, which can then offset electricity you consume from the grid when your panels aren’t generating energy (like during nighttime). That can add up to big savings.
Future outlook for solar incentives in Oklahoma
Oklahoma’s got your back with its net metering policy, supporting renewable energy by saving you money. Even though we’re not seeing a bunch of new incentives on the table, net metering lets homeowners offset energy costs by giving back extra electricity to the grid. We’ll keep our eyes peeled for any updates so check back here for any news. And while the state might not have a ton of shiny new incentives, the federal government continues to offer great tax credits for solar, and net metering still offers a sweet deal for those thinking about going solar in the Sooner State.
How to get started with solar in Oklahoma
Now that you’ve learned about Oklahoma’s solar incentives, you can take full advantage of these opportunities by teaming up with ADT Solar’s expert guidance.
Let ADT Solar’s experienced team take care of everything, from the initial assessment to the seamless installation, ensuring a smooth transition to solar energy. And we’ll make sure you’re lined up for all the incentives you qualify for.
Embrace eco-friendly energy today and start enjoying the financial benefits of clean, renewable power for years to come!
FAQs about Oklahoma solar incentives
Yes, you can sell power back to the grid in Oklahoma. This process is known as net metering, where if you generate excess electricity from a renewable energy system, such as solar panels, it can be fed back into the grid, and you receive credit or payment for the surplus power. To participate in this program, you’ll need to have a grid-tied renewable energy system installed. The specific regulations and rates may vary depending on your utility company and location within the state.
As of 2023, the residential clean energy credit offers a 30% tax credit for solar installations until the end of 2032. After 2032, the tax credit percentage will gradually decrease, making it essential for prospective solar adopters to take advantage of the higher incentive before the reduction takes effect.