Oklahoma Solar Panel Tax Credit in 2022
Oklahoma still has a lot of work to do before it can move forward on a path toward cleaner energy. There is no Renewable Portfolio Standard (RPS), so there is little incentive for utilities to follow clean energy laws. They also have no offer to help you put solar panels on your roof. Anyone who wants to contribute to a cleaner future of energy should demand more from their state representatives. Here is everything you need to know about Oklahoma solar panel tax credit in 2022.
Federal Solar Investment Tax Credit
The federal tax credit of 30% is available for photovoltaic systems that are installed before 2032. This 30% discount includes equipment and permits.
Example: Your federal solar tax credit is $20,000 x 30% if your solar energy system cost $20,000.
At the end of 2032, the federal tax credit will be 26%.
Oklahoma Net Metering
You can get a full retail rate credit for any electricity that you send back to the grid using your solar panels with net metering in certain states.
Net metering allows your utility to track how much solar energy your system produces and how much you use to ensure you receive credit for any surplus.
Oklahoma requires all investor-owned utilities and electric cooperatives to provide net metering to all customers. All systems with a maximum of 100kW are eligible. The energy that exceeds the monthly average on-site usage is charged to the customer at the avoided cost (around 2-3 cents per kWh).
Although it sounds solid, Oklahoma’s net meters are weak. Utility companies don’t have to buy excess electricity generation. Customers have the option to request that their utility purchase excess electricity generation. However, the final decision rests with the company and not the customer.
Oklahoma Solar Rebates
Although Oklahoma doesn’t have a state-specific rebate for solar panel installations, manufacturers such as LG offer their own rebates. These rebates are often time-sensitive. LG, for example, offers a $600 rebate on its equipment. Your Oklahoma solar installer can help redeem this over the next 12 months.
Is Oklahoma Worth the Cost of Solar Panels?
In the last ten year, solar panels have seen their prices drop by more than 80%. They will continue to be subsidized by the Oklahoma solar panel federal tax credit of 30% and net metering laws in 2022, making them a great investment. They provide a higher return than the average long-term return from the property and the share market.
Another way to approach this question is to calculate the cost per kWh of electricity you will consume over the next 25 years with or without solar panels. The savings can be significant, as you will see.
What Amount of Electricity Can Solar Panels Produce in Oklahoma?
Solar panels can generate different amounts depending on where they are located.
An Oklahoma solar system installed on a south-facing pitch roof will produce 1,550kWh per year of peak DC (direct current).
Pros and Cons of Installing Solar Panels in Oklahoma
Installing solar panels in Oklahoma has the benefit of abundant sunlight. Here, solar systems produce more electricity than in other parts of the US where there is less sun exposure.
Installing solar panels in Oklahoma has its disadvantages. There are very few incentives for state and utility-based projects. The law does not require utilities to purchase excess solar energy, even though the state has a net metering policy.
Oklahoma residents can still save money on installing solar panels at home thanks to the 26% federal tax credit.
Go Solar With ESD Solar Today!
ESD Solar has been installing solar energy systems for many years. We’ve installed thousands for satisfied clients throughout the state of Oklahoma. ESD Solar has been chosen by both families and business owners to assist them in making the switch to renewable energy. Contact our solar experts today to arrange a no-obligation consultation!