Oklahoma Solar Power Rebates, Tax Credits, and Incentives

OU Memorial Stadium – “Ooooooohh U!”

Updated 12-30-09

Oklahoma, the Sooner state. With the Ozark mountains, Cypress swamps and Grand Lake, not to forget the plains and prairies, Oklahoma needs the sun to keep itself looking good. Solar power and other clean energies could keep the state’s cities and towns bustling while protecting the land and waters that bring life to the Sooners. The state legislature has not done much to promote renewable energy sources, but here’s a guide to what they’ve been thinking about.

STATE LEGISLATION

Governor Brad Henry seems to have put all his eggs in the bio-fuel basket, and has yet to mention solar power. Hey Governor Henry, what makes all that corn grow to make bio-diesel? Hint: the sun.

Despite a history of getting an early start, the Sooner state legislature is behind the times when it comes to solar energy. In 2006 Republican Representative Randy Terrill did introduce House Bill 2512 which would have provided tax credits for installing a residential solar system, but sadly the bill didn’t pass. It would have been a great chance for Oklahoma to ramp up its use of clean power since the credits ran from 10% for a geothermal system to 40% of the cost for a solar photovoltaic system!

While House Bill 1387 passed both the Oklahoma house and senate by wide margins early in 2007, it has since bogged down with conspicuously little comment from the state’s leadership. This important piece of legislation would provide state tax credits equal to 40% of the equipment and construction/installation costs of solar and wind systems. Oklahoma is currently the sixth leading producer of wind power in the nation. HB 1387 would expand the use of renewable energy to residential and business customers, and pave the way for a more important contribution from solar power. Unless and until this legislation is passed, Oklahoma’s solar rating will continue to be poor.

NET-METERING

Oklahoma allows net-metering for any power generation system up to 100kW in size. The drawback is that the utility is not required to purchase net excess power generated. A customer can ask that the utility purchase power at the wholesale rate. As you might imagine, this policy doesn’t give much of an incentive to generate clean energy.

Net Metering Rules govern solar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, and chp/cogeneration are available to commercial, industrial, residential, and general public/consumer systems with a generating capacity of 100 kW or annual energy output of 25,000 kWh/year – whichever is less. Agreements to purchase excess power generated by the customer are commonly negotiated with the utility company. Details are here.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

There are no residential incentives, rebates or credits in Oklahoma. Bummer. However, utilities can take a tax credit if they produce electricity from renewable sources under a provision inTitle 68 of the Oklahoma statutes. A 2006 amendment extends the credit to any electricity producer generating more than 1 MW of clean power. For electricity generated between now and January 1 2012, the credit is $0.0025/kWh and between January 1, 2012 and January 1, 2016, the credit goes up to $0.005/kWh.

Corporate Tax Credit

* Zero-Emission Facilities Production Tax Credit

EXAMPLE 5KW SYSTEM – HOME INSTALLATION COST

Paying for a 5kW home solar electricity system in Oklahoma City would cost about $37,500 to install a typical system at $7.50/DC watt. While there are no state rebates, you can take a 30% ($11,250) Federal Tax credit too.

We’re going to be honest here: At current electric rates in Oklahoma, thanks to CO2 coal fired utilities and no national carbon reducing policies, it will take 25 years to get a financial payback. If the local legislators would get out of the pockets of oil and gas companies and pass a renewable portfolio standard or institute some real solar incentives, solar systems would pay off much faster–as it does in many, many other states. The good news is that solar prices without incentives are still getting lower, thanks to competition and an oversupply due to the recession.

On the plus side:

Your new electric bill in the first year will go down from an average $100/month to just $25/month.
You’ll keep a whopping 12,645 lbs of CO₂ out of the atmosphere a year; that’s like planting 42,576 sq.ft. of trees or not driving over 15,000 miles a year.

CONSENSUS

Oklahoma has made remarkable progress in the development of wind power, although that may be more the result of efforts by its two largest power providers than state legislators. OGE Energy, parent company of Oklahoma Gas & Electric, recently announced plans to more than quadruple wind power production from 170 mW to 770 mW, and is also constructing a high-capacity transmission line in the western part of the state. (Interestingly, green pricing customers are now buying wind power at about the same rate as electricity from traditional sources.) Public Service Company of Oklahoma, a unit of energy giant American Electric Power, is currently an even larger producer of wind power in the state and equally committed to growing that market.

However, Oklahoma will have to do some serious work promoting solar power and other clean energy sources to be considered an environmentally responsible state in the 21^st century. The state legislature has considered very few renewable energy bills, and has passed even fewer – just one in the last 2 years, and it was an amendment to an existing rule. It’s more than OK to jump on the solar power bandwagon sooner, not later! If Oklahoma really wants to make a change in its energy market, the legislature needs some renewal; vote in some lawmakers who care about the Sooner State.

Click here to have multiple solar installers bid to upgrade your Oklahoma home or business.

Read the 24 brilliant comments below or add yours!

Mr. Oak

Comment on June 10th, 2008.

I don’t understand why they won’t pass the legislation that would make the power companies pay us for pumping energy into their system. Negative Net Metering reimbursements could add a lot of incentive here.

Maybe with the new Green popularity, we can get one of those tight,,,un,,, never mind. One of those legislators to again get a green tax break in the works. If I’m going to invest 45K in a nice alternative system, I could do it OK, if the legislation became a reality on that 40% helping hand on materials and construction costs they were talking about.

Here is the information. Maybe a email writing campaine would help?

Mr. Oak

Thomas Anders

Comment on July 14th, 2008.

If I could get a 40% credit on construction and material cost I would have a 10kw Bergey wind turbine made by oklahomans and installed by oklahomans tommarow. this would completely power my home with green energy.

Phil Rhoades

Comment on July 24th, 2008.

Once again, no one steps forward. Have been watching Mr. Pickens commercials, and am quite hopeful that he might actually try to do something. However, the reality is there will be very few people at the State Capitol who will actually make this decision, but of course it will affect many. I would really like to put by carbon footprint up their —, where collective their head is.

Michael Spirgis

Comment on August 10th, 2008.

The State of Oklahoma is so wrapped up n partisan politics and political one-upsmanship, that when one party has what is an exceptional idea, the other party shoots it down to preempt bragging rights. Of course, that generates negative press, but both parties are used to that and the public hears so much of it that they are almost virtually immune.
Construction incentives and mandatory buy-backs should be instituted nationwide, and be the norm instead of the exception. With all its talk about “…leading the way into the 21st century”, the powers-that-be in Oklahoma are still more worried about themselves than they are about their constituency.

Mac McManus

Comment on October 14th, 2008.

Moved here from Maine a year ago and I never realized that this state was so backwards when it comes to green power. Could it be they’re worried it might drop the price of fossil fuels? Seriously, people here could take advantage of all this sun if there were even token incentives. It also would make it look like the state has a clue!

Frank Gilley

Comment on December 17th, 2008.

I hate to point this out, but Louisiana offers 50%, and you can double-dip on a larger system, say 7.2KW.
My parents live in Oklahoma and I wish they could get this.

Michael L. Delaney

Comment on January 8th, 2009.

I have been researhing mostly home built electric cycles, boats and cars. In my research I have found a lot of DIY information for home wind energy systems. I believe that this can be done for some several thousands of dollars and not with a highly over inflated system from resellers. Is there anyone else out there working on this? I would like to collaborate on ideas and designs and get this running for my small rural community east or Norman, OK. Waiting for our fossil fuel and Insurance corporate owned government of Oklahoma to help us out is a waste of time.

McGreen

Comment on January 10th, 2009.

We would like to retire around Normanin 5 years. The Sooner state is well positioned to exploit wind and solar energy – does anyone know of communities pooling resources to get a windmill to power a club house for example?

We’ve picked the builder we like and keep agitating about solar/wind mills… Muirfield homes are real pretty.

IbetYouSmokeToo

Comment on January 11th, 2009.

I have lived in Oklahoma City for 27 plus years now. During this time one thing has been crystal clear, our state legislature and senate rep James Inhofe are against anything that doesn’t use/ consume oil. As long as he wins his senate seat it will be more of the same. Interesting that he wins by so large a margin, says a lot about the people that live here. I have been very interested in a solar/wind system but the cost is still too high. Without any state rebates/ incentives in the next few years I will move out of state, it’s that simple. My tax dollars can go to a forward looking state, one that cares about the future. It’s a shame but it really comes down to what matters to me and my family. I walk my dog several times a day and am so tired of sucking down the toxic crap that comes out of internal combustion vehicles, not to mention what is happening globally. I own a Prius and would have purchased an all electric if one were available, good job GM! Oklahoma was built on oil and so too will it be the end of it. I will keep my fingers crossed and hope the new administration and Pikens can make that much needed change in Oklahoma.

joe

Comment on January 28th, 2009.

if you want something to change send a email to the OKLAHOMA SENATE
STAFF CONTACTS

Randy Dowell (405) 521-5769 dowell@oksenate.gov
Director, Fiscal Staff
State Budget

Laurie Houser (405) 521-5772 houser@oksenate.gov
Asst. Director, Support Services
Editing
Compiling
Graphics

Lori Block (405) 521-5773 block@oksenate.gov
Appropriations Attorney
Editing

Kim Montgomery (405) 521-5765 montgomery@oksenate.gov
Legislative Analyst
Education

Jason Deal (405) 521-5766 deal@oksenate.gov
Fiscal Analyst
State Personnel Issues
Transportation

Amy Dunaway (405) 521-5775 dunaway@oksenate.gov
Fiscal Analyst
Agriculture
Energy and Environment
State Economy and Demographics
Tourism

Alicia Emerson (405) 521-5715 emerson@oksenate.gov
Legislative Analyst
State Personnel Issues

Amanda Ewing (405) 530-5384 ewing@oksenate.gov
Fiscal Analyst
Human Services

Jeremy Geren (405) 521-5689 geren@oksenate.gov
Fiscal Analyst
Education

Joanie Raff (405) 521-5677 raff@oksenate.gov
Legislative Analyst
Oklahoma Taxes

Anthony Sammons (405) 521-5696 sammons@oksenate.gov
Fiscal Analyst
Health and Social Services

Sean Wallace (405) 521-5619 wallace@oksenate.gov
Fiscal Analyst
Public Safety and Corrections

phil

Comment on February 3rd, 2009.

hey guys!!!

Dan Hahn

Comment on February 3rd, 2009.

Hey Phil!

Leigh

Comment on March 14th, 2009.

I’ve been exploring the possibility of building a windmill to power my house. In my research, I have seen so many do-it-yourself books and even free downloadable plans for windmills. Many of these mention using the combination of wind/solar power. I have solar panels on my roof already that are not being used. The prior owners originally had solar power hooked up to their water heater, but disconnected it for some reason. Does anyone know if I might be able to use the existing solar panels to combine with a windmill? Who would I contace to check out the solar panel to see if it is in working order? Thanks!

marty

Comment on March 24th, 2009.

leigh thier is alot of information on youtube. On how to make a windmill and it is all FREE not sure about you old system but ive used youtube for alot of information on this subject

Jeff

Comment on May 9th, 2009.

Let me clue you all in. It’s black, liquid and what the state was made on…(give up)…OIL and Natural Gas. Why would a state that evolved on OIL/NG want to support any other energy (even though it is the correct thing to do)? What we need to do as a community is go ahead with Green Technology and hit them where it hurts (pocket book). Whether we start using solar, wind, or chicken poop as a energy it will hurt the oil industry. Aside from cars, energy companies are the largest users of fossil fuel. I am going to look at designing a wind turbine and solar water heating in our new house (and still stay within HOA covenant). (By the way, I grew up in family that worked for Phillips Petroleum and my wife works for an oil company…talk about ruffling feathers)!!!

Dan Hahn

Comment on May 9th, 2009.

Good for you Jeff! We’re fully behind you! (Let us know if anything comes of integrating the chicken poop into your energy portfolio, that would make for a unique story)

Randy Hise

Comment on May 9th, 2009.

I love this idea. I live in Talihina Oklahoma and have never seen a solar panel or wind power anything. I have wanted to go green for along time but could not afford it. I other states can do it we should be able too. I would solar or wind power in a heart beet if i only had a little help with it. people dont understand or they just dont care what we are doing to our planet. the man at our local nersery said something the other day that hit me pretty hard. I was asking questions about trees for my yard because i could not decide what kind to get. the man asked me did I want to plant them for myself or did i want to plant them for my grand childern. think about that a minute. I think to many people think of themselves befor they think of this wonderful planet we live on. we need to take care of her and befor it is to late!!!

Green Machine

Comment on June 6th, 2009.

I don’t think it’s any secret why the state of Oklahoma is pushing the huge wind farms. Simply put, the wind farms are built and the power is sold by the BIG electric companies and distributed by middle men such as local cooperatives or city governments then sold to the people with an added tax and marked up pricing that goes to the local and state government. If you wanna do a little research you will find that many cities purchase this power and sell it to citizens. They also add a huge mark up to the price and tax it. By the time the electric makes it to your home you will pay the producer (P.S.O. or Western Farmers), the “electric company” or city government and a hefty tax.
The state don’t want to “push” solar or wind power produced by the home owner because they won’t get their cut of the taxes. The local governments and cooperatives don’t wanna push it because they are affraid it will run them out of business and keep them from padding their walletts.
Please research your local electric cooperatives. I have done a little research myself. In Lindsay, Oklahoma you will find that the Ex-C.E.O., Mike Treadwell, has been accused of taking hundreds of thousands of dollors from Rural Electric Cooperative. Long story short. It appears that the board members tried to hide it for years. Maybe they were affraid the customers would find out how much extra cash they have laying around?????????????

DILLON

Comment on June 18th, 2009.

IT APPEARS THAT IT IS ONLY 1955 IN OKLAHOMA LETS GET SOMETHING DONE ENERGY-WISE

preston

Comment on June 24th, 2009.

Anyone know of a good school to attend in the Oklahoma Texas area that the GI Bill will cover. I am a Vet looking to get into the solar energy field and can’t find out where to go. I want a hands on school with all the things I need to be legal to install and service. Thanks let me know prestonp83@yahoo.com.

Glenn

Comment on June 25th, 2009.

I would like to know if there are any schools that offer hands on training for installing solar panels or to start a business in solar panel instalation?

Glenn

Comment on June 25th, 2009.

any hands on tech schools available in oklahoma for solar?
gdc54@hughes.net

Royce

Comment on July 18th, 2009.

I would be interested in teaming to build a Solar Thermal/Electric system for residential use. The system would potentially use a flat panel collector to heat a gas (refrigerant). The gas would generate electricity via a turboexpander to turn a permanent magnet alternator. Cooling would be provided using water with the heated water supplying the home.

This is not really a new concept as 80% of all power today uses the Rankie Cycle and geo-thermal plants use this exact setup. What would be new is the sizing of the system. A small 4kwh system could supply most all of a homes electric and water heating needs. My current research suggests that such a system could be built for less than $10,000.

If interested my e-mail is royce.jones1@gmail.com and I live in the Yukon area.

Lee Cornelius

Comment on July 27th, 2009.

Having installed a solar PV system on the roof of my house when we did have Oklahoma tax credits (in the ’80’s), I know that it is within the capabilities of electrically knowledgeable people. New building integrated PV products from Uni-Solar (a U.S. company) make that even easier.

mike

Comment on October 6th, 2009.

me and my wife are going to move to the farm her grandmother left her,and i was looking for way to hook-up a solar battery inverter system just in case power goes out during storms.does anyone have a simple solution??????????? mike

shane

Comment on December 23rd, 2009.

The state will not pass any laws that reduce the tax revinue from natual gas that make up 15% of the state income it is that simple

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