Solar Panels in Oklahoma: Cost and Savings 2023

Investing in solar panels for your home is an excellent way to reduce your energy costs, slash your carbon footprint, and boost your home’s value. Over the past few years, there has been a massive increase in residential solar installations in Oklahoma, jumping from under five megawatts (MW) in 2019 to 112 MW in 2022 according to the Solar Energy Industries Association (SEIA). 

Is solar worth it in Oklahoma? There are over 12,440 homes with solar panel installations in Oklahoma. It’s also projected to grow by 2,214 MW over the next five years, ranking 21st nationwide for projected solar growth. Keep reading to learn about the costs and benefits of solar panels in Oklahoma and whether they’re right for you.

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

In Oklahoma, the cost of solar panels depends on various factors, including your energy

consumption habits, the size of your solar system, its components, and configuration. Labor costs and local permitting costs will also affect the final installed price. Current Oklahoma solar incentives and tax credits may reduce total costs.

According to the Tracking the Sun report by the Lawrence Berkeley Laboratory, the national average residential solar cost is $3.67 per watt, around $31,558 for an average 8 kilowatt (kW) system. Typically, the cost includes solar panels and associated components, installation, permitting, inspection, and interconnection. 

In Oklahoma, the average cost per watt for a typical 9 kW solar system is $3.99, for an average initial cost of $35,865. While the price tag of going solar is high for many homeowners in Oklahoma, solar tax credits and other incentives can help lower the costs.

Solar panels in Oklahoma can be expensive. The good news is that financial incentives can reduce the cost burden. You can only use incentives if you purchase or finance your solar panels, not if you lease them.

• Oklahoma offers a net metering program to residential and commercial customers. Net metering allows you to get credits on your electricity bill when you send excess electricity back to the grid. Under the amended 2019 net metering program, a utility can purchase excess generation from solar customers at the utility’s avoided energy cost. Solar owners don’t get full retail electricity rates for the excess generation they sell to the grid. Utilities calculated the compensation rate based on the power generation cost a utility would avoid by buying it from solar customers.
• The federal government offers Residential Clean Energy Credit, formerly known as Investment Tax Credit (ITC), which allows you to claim a credit of 30% from your federal taxes when you purchase or finance a residential solar system. There is no cap on this solar panel tax credit. Any home or solar system size can qualify. You can use the credit for your primary or secondary residence on systems installed from the beginning of 2022 through 2032. The credit decreases to 26% in 2033 and 22% in 2034, expiring in 2035.

Solar panel setup

The home solar panel system components contribute to the total price. Here are a few components that are key in how solar panels work:

• Solar panels: Solar panels are made up of solar cells that capture the sunlight that provides energy to your home. Multiple solar cells make up a solar panel, and solar panels make up a solar system. You can choose between monocrystalline, polycrystalline, or thin-film panels. Each will have different efficiency levels and optimal functioning ranges, which affect costs. The best solar panels in 2023 will likely cost more upfront but will lead to higher long-term savings.
• Inverter: Your solar panel inverter takes the electricity from your solar panels and converts it from direct current (DC) power into alternating current (AC) power, which can power your home.
• Racking: Solar panels are attached to a roof, to a ground mount, or to building facades with a racking system with mounting rails and flashings. Solar panel roof installations are the most common form of racking.
• Batteries: Once you convert solar energy into usable electricity, you can store excess energy in a solar battery for later use. This is necessary if you plan to be 100% off-grid (which is legal in OK) or draw the majority of your energy from solar panels.  

If you’re ready to find out how much you can save with a solar installation, Choose Energy can help you get connected to a solar installer. Fill out this form to get started.

Tax credits and net metering are two ways to save with your solar panels. You can also expect to save money on energy by powering your home with solar power in the long term. Typical payback periods for solar panel installations in Oklahoma are about 15 years. In addition, solar panels can increase your home’s resale value. 

Electricity costs an average of 10.96¢/kWh in Oklahoma. The cost per kWh for a solar panel can be divided over its lifetime. Here’s an example of typical savings. 

Suppose you purchase a $35,865 residential solar panel system. You could recoup about $10,800 in the first year with the federal tax credit. Of course, you’ll also save money on your monthly electricity bill. Oklahoma residents pay an average of $122.77 for electricity each month.  

If you can offset that cost with solar, you could reduce energy bills up to $1,473.24 per year ($122.77 x 12 months). After using the federal tax credit and yearly savings, you should reach the breakeven point on your solar panel system in about 15 years.

Here’s a summary of the return on investment (ROI) for an Oklahoma solar panel system based on an initial investment of $31,558 and the average monthly electric bill of $122.77:

One of the most important benefits of installing solar panels is the energy independence gained. Energy independence means that you’re no longer dependent on electric utilities. This can protect your family from daily and seasonal energy price fluctuations. For example, customers with energy independence maintain their electricity without paying exorbitant bills during Oklahoma ice storms or tornadoes. 

Energy demands tend to be higher during extreme temperatures in both summer and winter. As a result, electricity tends to be more expensive during those seasons. Solar panels can shield you from seasonal price swings, offering more stable prices and predictable monthly bills. 

Most solar system owners remain connected to the power grid after installing solar panels, but you could generate all your energy requirements and even sell additional energy. In Oklahoma, net metering law means you can sell any extra energy back to the grid, leading to additional income. 

Over 12,440 Oklahoma homes are powered by solar. Over $229 million has been invested in solar power in Oklahoma, but currently, only 0.19% of the state’s power comes from solar. 

Solar panels are a significant investment. Therefore, it’s essential to understand what you’re getting before you purchase them. You can learn more about solar panels by reading our education resources, such as the best states for solar or the pros and cons of leasing solar panels. You can also call the number on your screen to speak to an energy expert directly about solar in Oklahoma.

Here are a few things to consider before you buy solar panels:

• Your roof. According to the U.S. Department of Energy, solar panels work best on south-facing roofs with 15 to 40 degrees slopes. The installer will also assess the age and condition of your roof before installing solar panels. Roof replacement after solar system installation can be much costlier. 
• Shading. Solar panels with direct access to sunlight work most efficiently and provide maximum power output. Therefore, removing any shading around your property is essential before going solar. Ask your solar installer if tree removal services are included in their offerings.
• Solar investment vs. living in your home. You’ll get the most value from your solar panels if you plan to be in your home for an extended period. It can take up to 15 years to break even on a solar panel purchase in Oklahoma, and it may not be worth it if you plan to move soon.
• HOA rules. Some homeowners’ associations may restrict solar panel use or require approval before installing them on your home.

Green energy, or renewable energy, is produced without harmful carbon emissions. As the name implies, the sources of energy are renewable and can’t be depleted. Renewable energy sources includes solar, wind, bioenergy, and hydroelectric energy. Benefits for the customer include lower monthly bills, long-term energy savings, and more stable energy service even during storms or extreme weather. 

Oklahoma is behind most other states when it comes to solar energy generation. In 2022, the state ranked 46th in the nation for solar energy generation, with just 0.19% of Oklahoma’s electricity coming from solar power. Still, this amount of energy is enough to power around 12,443 homes. 

Despite modest growth in solar installations in Oklahoma, the future of solar in the state is bright. There are 33 solar companies, and solar prices in Oklahoma have also fallen 53% in the last 10 years. 

The past several years have seen investments in residential, commercial, community, and utility-scale solar installations. Major solar installations in Oklahoma include Covington Solar Farm and Choctaw Nation Solar Farm, which generate about 19.3 MW and power 2,445 homes. The Solar Energy Industries Association expects the total installed solar capacity in Oklahoma to reach more than 2,000 MW in the next five years.

What is the life expectancy of solar panels in Oklahoma?

Based on current industry norms, most solar panel warranties last between 25 and 30 years. However, proper care and maintenance may extend the life of your solar panels. However, many improved recycling technologies are being developed that could expand a solar panel’s value even beyond its useful life. 

Are there disadvantages to using solar energy in Oklahoma? 

Two main disadvantages of going solar are the high upfront cost of buying solar and the incompatibility of a roof with solar panels due to structural or space limitations. However, it’s possible to reduce the cost of solar with incentives and with other space options like ground-mounted solar panels.

How does solar power help the environment?

Solar power is a form of green energy, meaning its production doesn’t emit greenhouse gases contributing to climate change as traditional electricity generation. Solar energy helps reduce individual carbon emissions that contribute to climate change, pollution, and poor air quality.

What percent of Oklahoma’s energy production is solar?

Oklahoma currently gets 0.19% of its electricity from solar energy, enough to power 12,443 homes. However, this number is expected to increase significantly within five years. The solar energy industries association projects solar growth in Oklahoma by 2,214 MW over the next five years. 

Is it better to buy or lease solar panels?

Whether buying or leasing solar panels is better for you depends on your situation. It’s usually a better financial return to buy solar panels. However, leasing is a good option if you’re renting, planning to move soon, have HOA restrictions, or have other reasons you cannot purchase and install solar panels. In those cases, you can also consider solar sharing to access the benefits of solar without buying through community solar.