Oklahoma - Energy tax credit, solar rebates and incentives

Oklahoma Renewable and Solar Energy Incentives

Zero-Emissions Facilities Production Tax Credit (Commercial)

Commercial facilities in Oklahoma are eligible for a tax credit if they do not produce any harmful emissions into the environment by utilizing renewable energy systems such as solar panels, wind turbines.

Credit amounts:

• Facility placed into service from Jan. 1, 2004 to Jan. 1, 2016: $0.0050/kWh of electricity generated.
• Facilities must be 1 MW or greater in size to qualify.

Utility-Sponsored Loan and Rebate Programs (Residential/Commercial)

There are numerous rebate and loan programs offered by metropolitan cities and utility companies.  

• Specific information and prerequisites for individual programs may differ.
• Customers installing geothermal pumps and water heaters have the option of using the loan and rebate programs available.
• Low interest loans are granted to make the purchase and installation of water heating and geothermal systems more affordable.
• Rebates are offered as a set lump sum for the original expense of water heaters and heat pumps, or on a per ton basis.

Net Metering (Residential/Commercial)

Residents and commercial business owners in Oklahoma with a surplus of renewable energy-derived power or joined heat/power systems, and who are clients of an electric utility run by an investor owner can use net metering.

• Surplus energy that is produced by a customer can be purchased by the local utility at the end of the month at the avoided cost rate.
• Customers retain the renewable energy credits that are associated with the power that a given system produces.
• Renewable energy installations must not exceed a capacity of 100 kilowatts or 25,000 kilowatts/year (whichever is lesser) to be considered for net metering. 

Federal Energy Tax Credit (Residential/Commercial)

Taxpayers and commercial business owners are granted an energy tax credit of 30% of the total expenses, which include installation of residential and commercial solar panel (PV) systems, solar thermal systems, fuel cells and labor expenses.  Residential and commercial wind energy installations and geothermal pumps are also subject to a tax exemption.  

• Solar electric systems and solar thermal heaters have no maximum incentive.
• If there is excess federal tax credit, it may be carried over to the subsequent taxable year.  
• This may continue on through consecutive years until 2016, under which unused credit may or may not be expunged.

Federal Energy Conservation Subsidy Exclusion (Residential)

• Public utilities provide residential purchasers with an exemption of 100% of energy conservation subsidies.  
• The overall worth of an installation or renewable utility regardless of the energy conservation capacity, will be excluded from the buyer’s gross income.  
• Customers who participate in a utility company’s energy conservation program may be given a reduced rate of electricity utilized or a nonrefundable credit of the price of electricity on the customer’s monthly electric bill.

Energy-Efficient Mortgages (Residential)

• With this federal loan program, homeowners may utilize energy-efficient mortgages (EEM) to either supplement or completely fund renewable energy systems.