The complete list of Oklahoma solar incentives and tax credits for 2023
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Oklahoma is way down on the list of best places to install solar in the U.S., and it shows. According to the Solar Energy Industries Association (SEIA), Oklahoma ranks 45th in the U.S. for installed solar capacity with just 0.18% of the state’s electricity coming from solar.
The good news is that Oklahoma boasts a dozen solar installers and developers ready to give renewable energy projects a boost in the state, which helps keep the cost of installation low in the Sooner State. And with the federal solar investment tax credit now back at 30%, chances are many Oklahomans will be keener than ever to go solar at home.
The bad news is that there are no state rebates or tax incentives for solar in Oklahoma, nor is there a renewable portfolio standard (RPS) or a market for solar renewable energy certificates (SRECs). In fact, the only incentives available for most homeowners are the federal tax credit and the possibility of net metering.
Oklahoma State Solar Incentives
|Net metering in Oklahoma||Net metering is mandated by law in Oklahoma, but not at full retail rate and some utilities don’t offer a full net metering program|
Net metering in Oklahoma
Oklahoma law requires investor-owned utilities and electric cooperatives to offer customers net metering. However, not all utilities accept customer applications for net metering, and those that do typically offer credits only at the avoided cost rate, which is substantially lower than retail rate.
The Public Service Company of Oklahoma (PSO) offers two options to customers applying for net metering. The first is to sign up for the utility’s Standard Purchase Schedule. With this option, you get billed for any energy you draw from the grid and receive a bill credit for any surplus you send to the grid each month, at a price set annually by the utility.
The second option is a Net Energy Billing Option (NEBO). This is a time-of-day tariff where rates are higher between June and October and between 2 and 7 p.m. on weekdays in peak season. For customers who generate a lot of energy from their systems during these times, this option is a good way to save money and accumulate credits for the winter months.
Under the NEBO plan, energy sent to the grid and drawn from the grid are ‘netted’, i.e., one is subtracted from the other to find the balance. During peak production months, your bill will be reduced by the difference in kilowatts, including associated fuel charges. This means you’re effectively getting compensated at retail rate for energy you put into the grid, up to the amount you use from the grid.
PSO then pays you for any excess energy you send to the grid, but only at its avoided energy cost. As of August 5, 2022, the Avoided Energy Cost tariff sheet can be found here. Bill credits carry over month to month and aren’t applied to fixed charges.