Oklahoma Solar Incentives: What’s Available in 2026

What happened to the federal solar tax credit?

The federal solar investment tax credit (ITC), which previously allowed homeowners to deduct 30% of installation costs from their federal taxes, expired for new residential systems at the end of 2025 under federal legislation passed earlier that year.

Homeowners who installed solar systems before the deadline may still claim the credit, but systems installed in 2026 or later no longer qualify.

Are there any solar incentives in Oklahoma?

Oklahoma currently does not offer statewide solar rebates, tax credits or performance incentives for residential solar installations.

So, savings typically come from bill credits (net metering or net energy billing), lowering energy use first and financing options.

Energy efficiency rebates in Oklahoma

Before you go solar, it’s smart to reduce your home’s electricity use so you can buy a smaller (cheaper) system. If you have older appliances or HVAC equipment, upgrading first can lower your monthly load.

Some Oklahoma utilities offer rebates for qualifying energy-efficient upgrades. Examples that may currently be available include:

• Power Forward with PSO offers rebates for qualifying upgrades for PSO customers.
• Oklahoma Natural Gas has rebates for qualifying natural gas equipment, including certain water heaters.

What to know about net metering in Oklahoma

Net metering is a billing setup that “nets” (subtracts) the electricity your solar system produces from the electricity you use from the grid during a billing period. If your system produces more than you use, utilities may credit excess generation at the utility’s avoided energy cost. That amount is paid or credited during the next billing cycle.

Solar panels typically last 25 to 30 years.

In Oklahoma, you are typically credited at the full retail rate only up to 100% of your monthly consumption. Any excess energy sent to the grid beyond what you used that month is credited at the avoided-cost rate (the wholesale value).

Because net excess is often credited at avoided cost (typically lower than retail electricity rates), solar batteries can help some homeowners by letting them use more of their solar power on-site instead of exporting it.

Real-world example

One resident, Lowell in Oklahoma City, told us they overproduced about 600 kilowatt-hours (kWh) over the first few months of 2023. Then they produced less in May because it was cloudy. “But I have all this credit, so it'll be carried over into this month,” Lowell said. “So, I still won't have a bill.”

» DID YOU KNOW: Solar panels still generate electricity on cloudy days

How much are solar panels in Oklahoma?

If you pay upfront, average solar panel costs in Oklahoma are typically between $11,795 and $23,589. You can lease a system or finance it through a solar loan with minimal upfront costs.

Average solar panel costs by system size in Oklahoma

Is solar worth it in Oklahoma without incentives?

Going solar can be worth it in Oklahoma under very specific circumstances. Over 25 years, Oklahoma homeowners with solar panels avoid $29,807 in utility costs on average. But it doesn’t work out for everyone.

Solar panels work best on large, unshaded roofs that face south or west.

Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Your average energy consumption tells you what size solar system you need.

Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself.

The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.

Did you know?

Without the federal credit, payback periods may be longer. This is especially true if you export a lot of excess energy at avoided-cost rates.

» MORE: Solar energy pros and cons

Find solar companies in Oklahoma

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Oklahoma’s top solar companies to learn more.

FAQ

Bottom line

Oklahoma currently has few financial incentives for residential solar installations. Even so, solar may still make sense for some households due to long-term electricity savings and Oklahoma’s strong solar potential.

The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar. Turns out, it’s worth it for many homeowners, even in Oklahoma.

Solar costs and savings: Oklahoma vs. nearby states