Oklahoma Solar Incentive Programs
13 yr
Avg. payback
$900/yr
Avg. annual savings
None
State tax credit
avoided cost
Net metering rate
How Oklahoma Net Metering Actually Works
The law (17 O.S. § 156 / OAC 165:40-9) creates two different compensation tiers within the same billing month.
Tier 1, On-Site Consumption
~13.5¢
per kWh offset, at full retail rate
- What it is: Solar kWh you produce and use yourself
- Value: Full retail energy rate, every kWh offsets a purchase you'd otherwise make
- Source: OCC rule: "full retail energy rates, but only up to consumption level"
- Strategy: This is where Oklahoma solar economics live, maximize this tier
Tier 2, Grid Exports
~3 to 5¢
per kWh exported, at avoided cost only
- What it is: Solar kWh beyond your monthly consumption
- Value: Utility's NEBO avoided cost, set monthly, varies by season
- PSO 2025: Jan: 4.37¢ | Feb: 4.03¢ | Mar: 3.59¢ | Apr: 4.82¢
- Strategy: Every export kWh leaves ~9¢ of value on the table vs. self-use
Value Comparison: Self-Consumed vs. Exported Solar (per kWh)
PSO rates from NEBO avoided cost schedule (Tier 1). OG&E avoided cost estimated from Tier 2 sources, check your specific tariff.
125% Peak Load Cap, Don't Oversize
Oklahoma's OCC rules limit your system to 125% of your recorded peak demand. Beyond the legal cap, oversizing makes no economic sense anyway, exports at 3 to 5¢ take roughly 14 to 17 years to recoup their cost at current Oklahoma panel prices. Size your system to cover 85 to 95% of your consumption and keep exports minimal.
All Oklahoma Solar Incentives
| Incentive | Status | Detail |
|---|---|---|
| Federal Tax Credit (ITC 25D) | EXPIRED | Section 25D expired December 31, 2025. No federal residential credit for 2026 installations. |
| Net Metering, Self-Consumption | ACTIVE, FULL RETAIL | Solar offsets on-site consumption at the full retail rate (~13.5¢/kWh). Governed by 17 O.S. § 156 and OAC 165:40-9. Applies to systems up to 300 kW. Source: Oklahoma Corporation Commission (Tier 1). |
| Net Metering, Grid Exports | AVOIDED COST ~3 to 5¢ | Surplus kWh exported to the grid are credited at the utility's avoided energy cost. PSO's NEBO avoided cost averaged 2.5 to 6¢/kWh in 2024 and 3.5 to 4.8¢ in early 2025. OG&E avoided cost is set separately per their tariff. Far below the retail rate. |
| State Income Tax Credit | NONE | Oklahoma has no state income tax credit for residential solar installations. No legislation pending as of 2026. |
| Property Tax Exemption | NONE (RESIDENTIAL) | No statewide property tax exemption for residential solar. A manufacturer's exemption for large commercial/industrial installations exists but does not apply to homeowners. |
| Sales Tax Exemption | NONE | Oklahoma state and local sales taxes apply to residential solar equipment. No exemption for homeowners. |
| Utility Rebates | NONE | Neither OG&E nor PSO offers solar rebates for residential customers as of 2026. |
| USDA REAP | FARM/RURAL BUSINESS ONLY | Agricultural producers and rural small businesses may qualify for grants up to 50% of project cost. |
Oklahoma Solar Economics in 2026
Payback Reality Without the Federal ITC
With the federal ITC expired and no state incentives, an 8 kW Oklahoma system runs $18,000 to $22,000 installed. At a 13.5¢/kWh retail rate with 85 to 90% self-consumption, simple payback is typically 11 to 15 years. If a significant portion of production is exported at 3 to 5¢, payback can stretch to 17 to 20 years. Oklahoma has solid solar resources (4.8 to 5.2 peak sun hours statewide), the resource is there, the incentive stack is just thin.
The Self-Consumption Playbook for Oklahoma
Size to 85 to 90% of your monthly electricity consumption rather than 100 to 110%. Add a battery (4.8 to 9.6 kWh) to capture afternoon solar surplus that would otherwise export at 3 to 5¢ and use it in the evening when the grid would charge you full retail. Ask your installer to model hourly self-consumption on an actual year of your utility bills, not just annual totals. The gap between 13.5¢ saved and 4¢ earned on exports is $0.095/kWh, that spread is the most important number in your Oklahoma solar decision.
Which Utility Are You With?
Oklahoma's two major investor-owned utilities operate under the same state net metering law but set their own avoided cost rates:
- OG&E (Oklahoma Gas & Electric): Serves Oklahoma City metro, western and central Oklahoma. Avoided cost ~4 to 8¢/kWh (estimated). Check OG&E's Net Metering tariff at oge.com for current avoided cost schedule.
- PSO (Public Service Oklahoma / AEP): Serves northeastern and eastern Oklahoma, Tulsa metro. NEBO avoided cost averaged 3.5 to 4.8¢/kWh (Jan to Apr 2025). Monthly schedule at psoklahoma.com.
- Electric cooperatives: Many rural OK co-ops operate under separate agreements and are not bound by OCC net metering rules to the same extent. Verify your specific co-op's terms before installing.
Sources & Methodology
Net metering rules from Oklahoma Corporation Commission (oklahoma.gov/occ, Tier 1): 17 O.S. § 156 / OAC 165:40-9. Retail offset at full retail rate and avoided-cost export treatment confirmed from OCC official net metering page. PSO avoided cost rates from PSO NEBO Avoided Energy Prices schedule (psoklahoma.com, May 2025 PDF, Tier 1). OG&E avoided cost estimated from SurgePV and EnergyBot (Tier 2), verify at oge.com before purchasing. Absence of state incentives confirmed across SurgePV, EnergySage, EnergyBot (Tier 2, consistent). System size caps (300 kW, 125% peak load) from OCC (Tier 1). Not financial or tax advice. Verified October 2026.
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