Oklahoma is an unexpected contender in solar energy potential, ranking within the top 10 states for maximum sunlight exposure. This impressive solar advantage places it ahead of the traditionally sun-soaked California, thus positioning Oklahoma as a prime candidate for substantial solar energy generation.
Despite this favorable solar disposition, the state’s solar energy market remains relatively modest. It lacks robust state-level solar incentives and trails behind other regions regarding solar installer availability. One key factor contributing to this dynamic is the comparably lower electricity prices prevalent in Oklahoma when contrasted with other states more conducive to solar adoption. Nonetheless, the renewable energy landscape in the state is undergoing a positive transformation.
“Oklahoma was kind of like that last frontier for solar,” J.W. Peters, acting president of the Oklahoma Solar Association. He said, “A big part of our gross product is oil and gas. And so you’ve got a lot of people that are very loyal to oil and gas.”
There are a few avenues of opportunity for homeowners in Oklahoma seeking to harness the benefits of solar installation. The federal solar tax credit, a noteworthy incentive, offers a substantial 30% tax credit for solar energy systems acquired between 2022 and 2032. Moreover, net metering presents an avenue to sell excess solar energy back to the utility provider, bolstering the financial appeal of solar adoption.
The accessibility of net metering programs in Oklahoma is not uniform across all utility territories. Divergences in net metering rates are also observable based on the utility company. Among the prominent utility providers in the state, OG&E and PSO are noteworthy due to their expansive customer base. These entities offer one-to-one retail net metering, allowing solar producers to be credited for monthly excess energy generation, with any surplus credit carried forward to the subsequent month. This system, though supportive, lacks the mechanism of rolling over credits beyond a month. In a notable departure from some other states, installing solar panels in Oklahoma may lead to a property value increase and, subsequently, higher property taxes. Unlike certain jurisdictions, Oklahoma does not provide property tax protection or sales tax exemptions to mitigate this impact.
Oklahoma’s solar journey juxtaposes its abundant solar potential and the evolving landscape of solar adoption. While challenges persist, the availability of federal incentives and select net metering programs offer incentives for individuals seeking to harness the state’s sun-soaked advantage and contribute to its evolving renewable energy narrative.
