Have you ever wondered if solar panels could save you money in Oklahoma‘s sunny climate? Well as a solar analyst and Oklahoma native, I‘m here to walk you through all the ins and outs. I‘ll break down exactly how much residents like you can pocket by harnessing free rooftop energy based on real cost data. I‘ll also equip you to maximize savings within our state‘s specific solar policies.
Let‘s dive in!
Oklahoma is Primed for Solar Success
Oklahoma shines when it comes to solar potential. The state sees an average of 230 sunny days per year, ranking #6 in the country. And Oklahoma lands in the top 10 for peak sunlight hours.
Translated into solar power, those sunny rays could generate clean energy at efficiencies 17% higher than the minimum viable. That‘s a solar sweet spot!
And yet, under 0.1% of Oklahoma‘s electricity originates from solar energy. The Sooner State runs overwhelmingly on natural gas and wind.
So while conditions are ripe for solar, adoption lags behind leading states. But solar panels still beat paying the man! Let‘s break down exactly how much you could save.
Federal Tax Credits Cut 30% Off Your Solar Costs
The biggest savings opportunity comes via federal solar tax credits. The current federal Investment Tax Credit (ITC) offers a whopping 30% back on all solar systems installed before 2033.
- For a $15,000 solar array, you‘d slash $4,500 off via Uncle Sam.
- A bigger $25,000 system would score a $7,500 credit.
Over 6,500 Oklahomans have already utilized this money-saving offer!
The only catch is that credits require purchasing systems upfront or financing with a solar loan. But taking advantage now locks in bigger savings before incentives step down each year:
- 2033-2034: 26% tax credit
- 2034 onwards: 22% credit
- 2035: Expires completely
So now‘s the optimal window for maximizing federal solar discounts!
No Additional State-Level Solar Incentives
While the federal credit provides a great starting point, Oklahoma unfortunately offers:
- ❌ No state tax credits
- ❌ No solar rebates
- ❌ No property tax exemptions
- ❌ No sales tax breaks
Leading solar states like California, Massachusetts, and New Jersey dish out thousands more through extra state-level incentives.
For example, Massachusetts covers an extra $4,800 for a 7 kW system. NJ runs a Clean Energy Program doling out bonus rebates. And the CA Solar Initiative issues cash back based on system sizes.
But Oklahoma comes up empty in additional sweeteners. Making the federal credit all the more valuable for solar shoppers here!
Net Metering Only Offsets Cheap Wholesale Rates
Now, Oklahoma does have statewide net metering policies in place. This means utilities give bill credits for excess power your panels feed back to the grid.
But here‘s the catch – they only have to pay cheap wholesale electricity rates, not the full retail rate you pay for grid energy.
To put numbers behind that, households pay around $0.11/kWh for grid electricity in Oklahoma. But net metering bill credits equate to around $0.03/kWh – the wholesale generation price.
That‘s 3-4X less compensation for your solar kilowatts! Weak sauce for sure.
No Renewable Targets Driving Solar Growth
Behind Oklahoma‘s minimal solar policies lies a déjà vu story of shifting political winds:
- 2010 – Legislators pass a goal of 15% renewable energy by 2015 through the state‘s first Renewable Portfolio Standard (RPS)
- 2015 – Oklahoma achieves the target ahead of schedule, mainly through expanding wind power
- 2016 – Instead of raising standards further as scheduled, politicians let the RPS expire altogether
No new targets got established since. And without mandated standards directing utility investments into solar, it stays stuck in neutral.
But where policies fall short, economic savings speak louder!
Crunching Your Solar Savings Potential
Even without robust state incentives, solar panels still provide great money-saving potential across the Sooner State‘s sun-soaked roofs.
Based on average residential power consumption of 12,500 kWh annually in Oklahoma, a 6 kW rooftop system could supply 77% of a household‘s electricity.
Factoring in underperforming net metering rates, falling panel efficiencies, and rising utility costs, a 6 kW solar array still saves $24,150 over 25 years in Oklahoma.
That‘s over $9k in lifetime net profits beyond paying off the post-incentive panel price!
Bumping up to larger 8-10 kW systems for bigger homes can generate even greater lifetime savings exceeding $40,000.
Check out the solar profitability trend in OK:
Furthermore, today‘s low interest rates through solar loans (under 3%) lessen financing costs.
So while state-level incentives are AWOL, solar still pays big dividends over the long run!
Let‘s compare projected savings across different household solar scenarios:
| System Size | Upfront Cost (after ITC) | Est. 25-Year Savings |
|---|---|---|
| 6 kW | $11,000 | $24,150 |
| 8 kW | $14,500 | $32,100 |
| 10 kW | $18,000 | $40,000 |
Whether you could use a little or a lot more energy bill relief, solar delivers in Oklahoma!
Leasing Solar Remains Off-Limits
In many states solar shoppers can ditch upfront purchase costs by leasing systems instead. This routes financing through solar companies retaining ownership.
But Oklahoma prohibits any direct third-party electricity sales. So leases and zero-money-down power purchase agreements remain forbidden.
State statutes classify these as illegal "unauthorized use of utility services". Interestingly though, Oklahoma does NOT ban:
- Solar loans or buying systems outright
- Panel ownership/financing by third-parties
- On-site solar consumption once installed
This gray zone allows third-parties to own systems while facilitating customer financing. But direct kilowatt sales contracts stay banned.
Many solar advocates are still fighting to open Oklahoma‘s rooftop market further. But for now leasing is out as homeowner purchases remain the only path forward.
Weighing Oklahoma‘s Solar Incentives
Let‘s recap how Oklahoma‘s specific solar policies shake out:
| Incentive | Value |
|---|---|
| Federal Tax Credit | 💚 30% back until 2032 |
| State Tax Credits | ❌ NONE |
| Rebates | ❌ NONE |
| Net Metering | ❌ Only avoided cost rate compensation |
| Renewable Standards | ❌ Expired back in 2015 |
| Property Tax Breaks | ❌ NONE |
| Sales Tax Exemptions | ❌ NONE |
| Solar Leases/PPAs | ❌ Completely prohibited |
Uncle Sam‘s tax credit represents the sole lifejacket buoying Oklahoma solar. But 25 years of utility savings serve as the real motivator to install panels.
How Much Do Solar Panels Cost in Oklahoma?
Residential solar systems currently run around $2.62 per Watt in the Sooner State when accounting for equipment, permitting and installation.
So how does that pencil out? Here are average costs by system size in OK:
- 5 kW: $13,100
- 6 kW: $15,720
- 8 kW: $20,960
- 10 kW: $26,200
As highlighted before, the 30% federal tax credit slashes nearly a third off starting prices. Financing through low-interest solar loans can further reduce upfront capital needed while accelerating financial payoff timeframes.
And remember – focus less on bottom line solar panel costs than overall lifetime SAVINGS!
Let‘s Summarize…
- Oklahoma‘s plentiful sunshine could power over 3 million homes through solar energy
- But state policies limit solar growth compared to leading states
- The 30% federal tax credit until 2032 provides the best financial incentive
- Large lifetime utility bill savings make solar a savvy long-term investment
- Financing systems helps manage purchase costs to accelerate payback
So for Oklahoma residents, solar panels remain a smart way to harness free sunlight and add savings back to your wallet for decades to come!
I hope this guide served as an insightful overview of maximizing solar benefits right here in the Sooner State. Don‘t hesitate to reach out with any other questions!
