Oklahoma Solar Power Rebates, Tax Credits, and Incentives
OU Memorial Stadium – “Ooooooohh U!”
2012 Update
Oklahoma, the Sooner state. With the Ozark mountains, Cypress swamps and Grand Lake, not to forget the plains and prairies, Oklahoma needs the sun to keep itself looking good. Solar power and other clean energies could keep the state’s cities and towns bustling while protecting the land and waters that bring life to the Sooners. The state legislature has not done much to promote renewable energy sources, but here’s a guide to what they’ve been thinking about.
Okalhoma’s Renewables Portfolio Standard
A Renewables Portfolio Standard (“RPS”) is a law or other piece of regulation that mandates that a certain percentage of at state’s energy production comes from renewable resources by specified target dates. A strong RPS is important because it forces utility companies to promote conversion to renewable energy. That generally means free money for you in the form of solar power rebates and performance payments when you switch to solar.
Okalhoma has set a goal of 15% renewable energy by 2015. While that would ordinarily be an adequate first step for an RPS, Okalhoma’s RPS is literally establishes a goal and not a mandate. There are no penalties or other sanctions for utility companies that do not meet the 15% target.
Unfortunately the patterns we’ve seen elsewhere is repeated in Oklahoma: A voluntary RPS simply is not enough to spark meaningful incentives for solar power. For instance …
Solar Performance Payments and Rebates in Oklahoma
Okalhoma lacks any utility solar power rebates or performance payments. If the RPS set mandatory levels of renewable energy production, we can guarantee the utility companies would offer incentives to help you make the switch to solar. How do we know? It’s worked everywhere that a real RPS has been implemented!
Oklahoma Solar Tax Credits
The legislature isn’t picking up the slack either; there are no tax credits for installing a solar power system here.
Oklahoma Solar Tax Exemptions
Tax exemptions are a simple, straightforward, and effective way to promote solar power. A sales tax exemption would save you between 4.5% and 8.5% on your initial investment, depending on where in the state you live. A property tax exemption would save you even more, exempting you from paying taxes on the more than $12,000 in property value that installing a solar power system will add to your home. All without ever actually removing a dime from the state’s bank account! That sounds like a win-win to us. Unfortunately state lawmakers have yet to see that light (no pun intended); we currently lack both tax exemptions here.
Utility Prices in Oklahoma
Oklahoma pays an average of 9.62 cents per kilowatt-hour (“kwh”) of electricity. That’s one of the lowest average rates in the nation, and well below the national average of 11.43 cents/kwh. We know you like paying less now, but the long term costs of cheap electricity are through the roof. All that cheap electricity is produced by burning fossil fuels. Tons and tons of earth-killing fossil fuels. When the astronomical environmental costs start to mount, monthly electricity bills are inevitably going to rise as well. When that happens you’re going to feel pretty darn smart for making the early switch to producing your own clean, efficient solar power. Just remember to thank us …
Oklahoma Net Metering and Interconnection
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for any surplus. Oklahoma requires investor-owned utilities and electric cooperatives to offer net metering to all customers. All systems up to 100kw are eligible; utilities are not allowed to impose extra charges for customers, nor are they allowed to require new liability insurance as a condition for interconnection. While all of of that is pretty solid, overall Oklahoma’s net metering can’t get more than an “F” grade, because the utility companies are not actually required to purchase your excess electricity generation. Customers can request that their utility purchase excess generation, but the decision ultimately rests with the company, not the customer. You will need to check your individual utility company for their policy on net metering purchases.
Oklahoma has yet to pass any statewide standards for interconnection.
5kW Example Return on Investment in Oklahoma
Installing a typical 5kW solar system should start at about $25,000. Don’t worry – even without state incentives, you’re still going to save a lot, just in the first year.
- Since the feds calculate the federal solar tax credit based on actual out of pocket costs, no state solar power rebates or other incentives mean a bigger federal tax credit. Subtract $7,500 (30% of $25,000) for a new price of $17,500.
- After the federal solar tax credit we subtract your first year’s energy savings, which we estimate to be about $675. That brings your cost after the first year to $16,825.
- With a conservative estimate for the future rise of electricity prices, you can expect your new solar power system to pay for itself in about 17 years. Even with that somewhat slower payback time frame, you can still expect to get about 8 years of profits out of your solar power system. We estimate those profits to be almost 15 grand through 2036.
- In addition to those direct wallet-fattening savings, you also increased your home value by $13,506!
- In addition to all that cash (and home value), you’ve created some green for the earth as well by not using all that fossil-fuel backed electricity. In fact, the fossil-fuel energy you’re not using is the carbon-saving equivalent of planting 124 trees a year, every year your solar power system is humming.
These numbers are estimates. Your home is unique and how much power you generate and how much money you save depends on that uniqueness. The best way to find out how much cash switching to solar can save you is to get one of our free quotes, and an expert installer in your area can draw up a home-specific estimate for you. Your quote is 100% free (yes, that’s right, 100% free) and you can get as many of them as that smart shopper in you desires!
Oklahoma Solar Consensus
Oklahoma has made remarkable progress in the development of wind power, although that may be more the result of efforts by its two largest power providers than state legislators. OGE Energy, parent company of Oklahoma Gas & Electric, recently announced plans to more than quadruple wind power production from 170 mW to 770 mW, and is also constructing a high-capacity transmission line in the western part of the state. (Interestingly, green pricing customers are now buying wind power at about the same rate as electricity from traditional sources.) Public Service Company of Oklahoma, a unit of energy giant American Electric Power, is currently an even larger producer of wind power in the state and equally committed to growing that market.
However, Oklahoma will have to do some serious work promoting solar power and other clean energy sources to be considered an environmentally responsible state in the 21st century. The state legislature has considered very few renewable energy bills, and has passed even fewer – just one in the last 2 years, and it was an amendment to an existing rule. It’s more than OK to jump on the solar power bandwagon sooner, not later! If Oklahoma really wants to make a change in its energy market, the legislature needs some renewal; vote in some lawmakers who care about the Sooner State.
I don’t understand why they won’t pass the legislation that would make the power companies pay us for pumping energy into their system. Negative Net Metering reimbursements could add a lot of incentive here.
Maybe with the new Green popularity, we can get one of those tight,,,un,,, never mind. One of those legislators to again get a green tax break in the works. If I’m going to invest 45K in a nice alternative system, I could do it OK, if the legislation became a reality on that 40% helping hand on materials and construction costs they were talking about.
Here is the information. Maybe a email writing campaine would help?
Mr. Oak
If I could get a 40% credit on construction and material cost I would have a 10kw Bergey wind turbine made by oklahomans and installed by oklahomans tommarow. this would completely power my home with green energy.
Once again, no one steps forward. Have been watching Mr. Pickens commercials, and am quite hopeful that he might actually try to do something. However, the reality is there will be very few people at the State Capitol who will actually make this decision, but of course it will affect many. I would really like to put by carbon footprint up their —, where collective their head is.
The State of Oklahoma is so wrapped up n partisan politics and political one-upsmanship, that when one party has what is an exceptional idea, the other party shoots it down to preempt bragging rights. Of course, that generates negative press, but both parties are used to that and the public hears so much of it that they are almost virtually immune.
Construction incentives and mandatory buy-backs should be instituted nationwide, and be the norm instead of the exception. With all its talk about “…leading the way into the 21st century”, the powers-that-be in Oklahoma are still more worried about themselves than they are about their constituency.
Moved here from Maine a year ago and I never realized that this state was so backwards when it comes to green power. Could it be they’re worried it might drop the price of fossil fuels? Seriously, people here could take advantage of all this sun if there were even token incentives. It also would make it look like the state has a clue!
I hate to point this out, but Louisiana offers 50%, and you can double-dip on a larger system, say 7.2KW.
My parents live in Oklahoma and I wish they could get this.
I have been researhing mostly home built electric cycles, boats and cars. In my research I have found a lot of DIY information for home wind energy systems. I believe that this can be done for some several thousands of dollars and not with a highly over inflated system from resellers. Is there anyone else out there working on this? I would like to collaborate on ideas and designs and get this running for my small rural community east or Norman, OK. Waiting for our fossil fuel and Insurance corporate owned government of Oklahoma to help us out is a waste of time.
We would like to retire around Normanin 5 years. The Sooner state is well positioned to exploit wind and solar energy – does anyone know of communities pooling resources to get a windmill to power a club house for example?
We’ve picked the builder we like and keep agitating about solar/wind mills… Muirfield homes are real pretty.
I have lived in Oklahoma City for 27 plus years now. During this time one thing has been crystal clear, our state legislature and senate rep James Inhofe are against anything that doesn’t use/ consume oil. As long as he wins his senate seat it will be more of the same. Interesting that he wins by so large a margin, says a lot about the people that live here. I have been very interested in a solar/wind system but the cost is still too high. Without any state rebates/ incentives in the next few years I will move out of state, it’s that simple. My tax dollars can go to a forward looking state, one that cares about the future. It’s a shame but it really comes down to what matters to me and my family. I walk my dog several times a day and am so tired of sucking down the toxic crap that comes out of internal combustion vehicles, not to mention what is happening globally. I own a Prius and would have purchased an all electric if one were available, good job GM! Oklahoma was built on oil and so too will it be the end of it. I will keep my fingers crossed and hope the new administration and Pikens can make that much needed change in Oklahoma.
if you want something to change send a email to the OKLAHOMA SENATE
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hey guys!!!
Hey Phil!
I’ve been exploring the possibility of building a windmill to power my house. In my research, I have seen so many do-it-yourself books and even free downloadable plans for windmills. Many of these mention using the combination of wind/solar power. I have solar panels on my roof already that are not being used. The prior owners originally had solar power hooked up to their water heater, but disconnected it for some reason. Does anyone know if I might be able to use the existing solar panels to combine with a windmill? Who would I contace to check out the solar panel to see if it is in working order? Thanks!
leigh thier is alot of information on youtube. On how to make a windmill and it is all FREE not sure about you old system but ive used youtube for alot of information on this subject
Let me clue you all in. It’s black, liquid and what the state was made on…(give up)…OIL and Natural Gas. Why would a state that evolved on OIL/NG want to support any other energy (even though it is the correct thing to do)? What we need to do as a community is go ahead with Green Technology and hit them where it hurts (pocket book). Whether we start using solar, wind, or chicken poop as a energy it will hurt the oil industry. Aside from cars, energy companies are the largest users of fossil fuel. I am going to look at designing a wind turbine and solar water heating in our new house (and still stay within HOA covenant). (By the way, I grew up in family that worked for Phillips Petroleum and my wife works for an oil company…talk about ruffling feathers)!!!
Good for you Jeff! We’re fully behind you! (Let us know if anything comes of integrating the chicken poop into your energy portfolio, that would make for a unique story)
I love this idea. I live in Talihina Oklahoma and have never seen a solar panel or wind power anything. I have wanted to go green for along time but could not afford it. I other states can do it we should be able too. I would solar or wind power in a heart beet if i only had a little help with it. people dont understand or they just dont care what we are doing to our planet. the man at our local nersery said something the other day that hit me pretty hard. I was asking questions about trees for my yard because i could not decide what kind to get. the man asked me did I want to plant them for myself or did i want to plant them for my grand childern. think about that a minute. I think to many people think of themselves befor they think of this wonderful planet we live on. we need to take care of her and befor it is to late!!!
I don’t think it’s any secret why the state of Oklahoma is pushing the huge wind farms. Simply put, the wind farms are built and the power is sold by the BIG electric companies and distributed by middle men such as local cooperatives or city governments then sold to the people with an added tax and marked up pricing that goes to the local and state government. If you wanna do a little research you will find that many cities purchase this power and sell it to citizens. They also add a huge mark up to the price and tax it. By the time the electric makes it to your home you will pay the producer (P.S.O. or Western Farmers), the “electric company” or city government and a hefty tax.
The state don’t want to “push” solar or wind power produced by the home owner because they won’t get their cut of the taxes. The local governments and cooperatives don’t wanna push it because they are affraid it will run them out of business and keep them from padding their walletts.
Please research your local electric cooperatives. I have done a little research myself. In Lindsay, Oklahoma you will find that the Ex-C.E.O., Mike Treadwell, has been accused of taking hundreds of thousands of dollors from Rural Electric Cooperative. Long story short. It appears that the board members tried to hide it for years. Maybe they were affraid the customers would find out how much extra cash they have laying around?????????????
IT APPEARS THAT IT IS ONLY 1955 IN OKLAHOMA LETS GET SOMETHING DONE ENERGY-WISE
Anyone know of a good school to attend in the Oklahoma Texas area that the GI Bill will cover. I am a Vet looking to get into the solar energy field and can’t find out where to go. I want a hands on school with all the things I need to be legal to install and service. Thanks let me know prestonp83@yahoo.com.
I would like to know if there are any schools that offer hands on training for installing solar panels or to start a business in solar panel instalation?
any hands on tech schools available in oklahoma for solar?
gdc54@hughes.net
I would be interested in teaming to build a Solar Thermal/Electric system for residential use. The system would potentially use a flat panel collector to heat a gas (refrigerant). The gas would generate electricity via a turboexpander to turn a permanent magnet alternator. Cooling would be provided using water with the heated water supplying the home.
This is not really a new concept as 80% of all power today uses the Rankie Cycle and geo-thermal plants use this exact setup. What would be new is the sizing of the system. A small 4kwh system could supply most all of a homes electric and water heating needs. My current research suggests that such a system could be built for less than $10,000.
If interested my e-mail is royce.jones1@gmail.com and I live in the Yukon area.
Having installed a solar PV system on the roof of my house when we did have Oklahoma tax credits (in the ’80′s), I know that it is within the capabilities of electrically knowledgeable people. New building integrated PV products from Uni-Solar (a U.S. company) make that even easier.
me and my wife are going to move to the farm her grandmother left her,and i was looking for way to hook-up a solar battery inverter system just in case power goes out during storms.does anyone have a simple solution??????????? mike
The state will not pass any laws that reduce the tax revinue from natual gas that make up 15% of the state income it is that simple
We have a large solar panel on our house that was once hooked up to hot water heater but has not been in use for years. We’d like to get it removed. Know anyone we could contact for removal?
A workable solar power system can be installed for around $10,000. I live in Rock Island, Oklahoma and have had a solar powered home since 1999. I spent much more trying different types of systems and inverters. I have tried for years to get our legislature to develop an interest in alternative energy. They all seem interested in hearing about it but they just expect us to do it all on our own. The 30% Federal credit does help. After 10 years of solar power I definately know its limitations. I want some type of thermal electric system to compliment the solar during the grey winter days. We all have to heat our homes in winter so we may as well be making our own electricty while we stay warm.
I’m currently visiting some friends in Germany. Almost every house here has solar panels that heat water which is then used in a radiant heating system, mounted on the wall of each room. The ones in the bathrooms are sectioned into bars which provide heated towels for showers, too cool! The systems are effecient, fool proof and reliable. Yes they are ugly, both on the roof and on the wall, but they’re like a grandfather clock when it chimes, you get used to it. (I have three chiming clocks, I know) I’ve asked if there are government incentives and there doesn’t seem to be, but every house has it. They also don’t have any air-conditioning and don’t understand why we are so married to it, but I can’t sympathize with that mindset, I like my AC. They also don’t use ice or undcarbonated water, so they’re not right about everything! But they are so far ahead of the US in solar and wind energy production, it’s like we’re not even on the same planet!!
I am retired on Social Security and would like to build an economical system but don’t have a clue about getting started. Any help will be appreciated.
We are currently starting a Solar program at our school, High Plains Technology Center, in Woodward, OK. We will start doing programs for PV systems as well as Solar Thermal and also maybe a sales class every so often.
If you are interested in finding more out please contact me at tburnett@hptc.net or 580-571-6125.
P.S. We are doing a “Solar Open House” on Feb 14th from 10-2 on our campus if you would like to attend. We hope to help spread the word of Solar in the state of OK.
If I could get someone else to pay for 70% of a car I could get a new BMW…
Solar systems aren’t cheap so it isn’t popular. Same reason Tesla’s aren’t crowding the streets. Not the “lobbyist’s” fault, just how it is going to be for a while.
Steven – your comment does not make much sense. Owning a BMW will not do anything for reducing the strain on the grid – or reduce oil consumption for that matter. Whereas having multiple households and businesses on solar/wind energy will reduce the strain on the grid – and will also reduce coal consumption/emissions tremendously. Given our local and federal governments commitments to reduce our emissions – it would make snese to offer incentives at both a state and federal level.
Has there been any update to this post since its update in 2009? Are we still in the same place with regard to incentives?
Bert,
Our report is coming in the next few weeks with a state by state update. Stay tuned.
What about biomass renewable energy in Oklahoma? Even using Cofiring on all the coal plants in oklahoma even if biomass would be 3% percent of cofire at least it is a start.
I was looking at this Grid Tied 5.9kw system for about $14k shipped before tax credits. Looks like a nice unit, just need to get the details down for installation. This system would generate 10685kw gross over the year (based on OK 5.59 Daily Hour output of sun). The $35k example up top is a 5k system (this one is a 5.9k). Am I to assume that there is almost 20 grand in installation costs ?
Here is a copy of the email we sent to people listed here as influential:
Sirs,
We have a 1.9KW solar grid-tie system that is completely set up and ready to go, but the insurance requirement from our utility, IEC, is prohibitive. It cost more for the insurance than the amount of power that we will produce! They are making it impossible to use a small grid-tie system without losing money. Is it possible to get some help getting this insurance requirement changed? It is the antithesis of “green” and furthermore, several utilities do NOT require it; some have even taken the requirement off. Running out of hope here; our system is ready to plug in but we can’t use it, and we know of others in the same position.
Can you help?
Sincerely,
Lloyd and Rob (cavemaker@yahoo.com moigboi2@gmail.com)
I think that solar should compete with out any help from the government. Please keep the government out of my business.
I also like the government out of my business, but even coal needed subsidies to replace wood. Takes that to get it off the ground otherwise it never starts, even if it’s better.
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