✅ Federal Incentives
All federal benefits apply to entities in Oklahoma.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.
⚡ Property Tax Exemption
Oklahoma does not offer property tax exemptions for solar systems. Installing a solar system may increase your property's assessed value, potentially leading to higher property taxes.
⚡ Sales Tax Exemption
Oklahoma does not provide a sales tax exemption for solar equipment. This means that the 4.5% state sales tax applies to the purchase of solar panels and related equipment.
⚡ PACE Financing
Oklahoma offers Commercial Property Assessed Clean Energy (C-PACE) financing, allowing businesses to finance energy efficiency and renewable energy projects through property assessments. However, there is no Residential Property Assessed Clean Energy (R-PACE) program available for homeowners.
✅ Utility Incentives
⚡ Net Metering
Oklahoma allows net metering for solar systems up to 300 kW. Under net metering, excess electricity generated by your solar system is credited to your utility account at the utility's avoided cost rate, which is typically lower than the retail rate. These credits can offset future electricity bills. It's important to note that many rural electric cooperatives and municipal utilities are not required to offer net metering, so availability may vary.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are now eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
Oklahoma offers the federal 30% solar tax credit, but lacks state-level incentives such as property or sales tax exemptions. Net metering is available for qualifying systems, though compensation rates may be lower than retail electricity prices. Nonprofits can benefit from direct payments equivalent to the federal ITC. While state incentives are limited, the federal tax credit and net metering options make solar energy a viable investment in Oklahoma.