When it comes to installing solar panels in the heart of Oklahoma, it’s important to note the region is still adapting to the idea of implementing systems such as this.
It has harsher laws in place compared to other parts of the nation.
RPS in Oklahoma
Beginning with the concept of renewable energy, most states use what is known as an RPS (Renewable portfolio standard). This is simply a target set up by the state that can be hit to figure out whether or not certain technologies are “green” and meeting the required environmental targets.
In this case, Oklahoma doesn’t have an RPS in place for the state. This means they go with a more non-committed approach to the idea of becoming green. It is known as the REG or renewable energy goal.
Due to this, the regulations are still leaning towards other energy sources rather than looking to become more and more renewable with time. This is something to keep a note of when it comes to solar laws in Oklahoma.
Tax Credits for Solar Panels
One of the critical details that you will wonder about will be the underlying benefits of setting up solar panels on your property in Oklahoma. In general, the state does not have an ITC or income tax credit built around this type of energy.
However, this doesn’t mean it is a hopeless cause, and you are not going to have another way out. Instead, you can still move forward with the 30% federal ITC as that will make it a lot easier to set up the system and get it to work at an affordable rate.
On the same note, you will not have access to any rebates when it comes to setting up solar panels in the region.
All of the rebates that you will get will have to come from the federal level, as mentioned before. The same applies to those looking for some tax exemptions for going down this path.
Oklahoma doesn’t have these types of credits, which means any system that is being set up will have to face the brunt of the sales taxes that are legal in the state. This means you will have to be ready for quite a sizable bill as soon as the installation of solar panels in Oklahoma phase begins.
This means you will end up adding at least 4.5% on top of what you are already paying. It is also possible for additional sales taxes to go up to 8.4% depending on where you are in the state.
Unfortunately, this is not where the damages are going to end when it comes to your finances. You will also have to account for property taxes paid as the value of the property rises. There are not exemptions there either.
This means any time the property’s value goes up, you will have to pay for that in the form of property tax.
Electricity Rates in Oklahoma
To keep things in perspective, it’s important to dig deeper and start looking at Oklahoma’s electricity rates to get a better picture of what’s available to you.
As of right now, the average is set at 10.2 cents per kWh, which is something that has to be accounted for when it is time to iron out your utility bills. You will want to have this rate in mind when it comes to figuring out how much you will save over the long haul.
Remember, the average solar energy setup is going to add value to your finances over the long haul because there is a sizable upfront cost to pay.
In general, these rates are pretty low. Still, you are also going to end up paying for a dirtier environment because Oklahoma’s electricity tends to be among the worst in the nation. This means you are going to be polluting a lot more every time you use electricity.
What about potential loans that you can sign up for as a property owner?
Some companies do offer zero-down loans, but this is going to be situational. It is recommended to speak to these companies during the consultation to learn more about your options.
Please note, the government doesn’t offer these loans in the state.
Anything you are going to get will come from the company that is working on your property. Take the time to shop around and look for which company offers the best balance between quality and affordability to ensure you find a fair deal.
This is a must for moving forward in Oklahoma with higher upfront costs to account for.
No Additional Incentives
Since Oklahoma doesn’t look at renewable energy in the same light as other states, it also doesn’t have additional elements to provide benefits for clients. This is something other states do.
The goal is to make it easier to tap into these renewable energy sources through metering. The power goes into the power grid, and you get a small incentive out of it for excess energy.
There is no such setup in the state of Oklahoma, and any excess energy that you are going to have will be yours.