Oklahoma · Tax credit

OK Renewable Energy Income Tax Credit

Reduces residential solar owners' tax liability in Oklahoma -- see the credit amount, who qualifies, and how it shortens payback below.

50 cents per watt, m…
stated benefit
Residential
eligible customers
15.5 yr
Oklahoma baseline payback
2
other Oklahoma programs

What it means

In Oklahoma, a 6 kW system already pays back in about 15.5 years on ~$1,068/year of modeled savings, and the OK Renewable Energy Income Tax Credit stacks on top of that, on top of any federal credit.

50 cents per w…
stated benefit
15.5 yr
baseline payback (pre-incentive)
3
Oklahoma programs that stack
full
net-metering policy

Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.

Program description

Oklahoma income tax credit for qualifying renewable energy installations.

Program at a glance

Program type
Tax credit
Eligible customers
Residential
Stated benefit
50 cents per watt, max $7,500
State electricity rate
11.5¢/kWh
Oklahoma solar score
29/100

How Oklahoma compares to the U.S. average

Why this incentive matters more (or less) here - Oklahoma's solar fundamentals against the national average.

Irradiance
Oklahoma: 5.3 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Oklahoma: 11.5¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Oklahoma: 15.5 yr
U.S. avg: 14.2 yr

Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.

Solar's trajectory in Oklahoma

The market this incentive operates in: total installed solar capacity in Oklahoma reported to the EIA.

-50 MW0 MW50 MW100 MW150 MW200 MW 2015201620172018201920202021202220232024 174 MW
Oklahoma now has about 174 MW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Oklahoma's solar incentive stack

How this tax credit sits among Oklahoma's 2 tracked programs, by type

programs

What this shows Oklahoma tracks 2 incentive types; 1 of them, including this one, are tax credits. Credits reduce what solar owners owe directly, on top of whatever the other stacked types provide.

Source DSIRE incentives registry As of 2024

How this incentive fits Oklahoma's solar picture

The OK Renewable Energy Income Tax Credit is a state-level credit against what you owe, tracked as one of Oklahoma's solar incentives in the DSIRE registry. Eligibility is scoped to residential customers, with a stated benefit of 50 cents per watt, max $7,500. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Oklahoma averages 5.3 kWh/m²/day of usable sunlight and residential rates of 11.5¢/kWh, producing an estimated 9,286 kWh/year and $1,068 of annual utility offset on a typical 6 kW system costing $16,500. That baseline already implies a 15.5-year simple payback and a 25-year modeled net of roughly $10,200 before this incentive - every dollar this tax credit delivers compresses that payback further.

A handful of other levers are worth checking alongside this one. Oklahoma has 3 solar incentive programs indexed in DSIRE, including adjacent options like OK Net Metering. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.

Your next step

  • See Oklahoma's full solar profile, score, irradiance, rates, payback, and every program you can claim. Oklahoma solar data
  • Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
  • Read how state and federal solar credits work together. Tax-credit guide

Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.

Frequently asked questions

What is the OK Renewable Energy Income Tax Credit?
The OK Renewable Energy Income Tax Credit is a tax credit available to residential solar customers in Oklahoma. The stated benefit is 50 cents per watt, max $7,500.
How does the OK Renewable Energy Income Tax Credit work?
Oklahoma income tax credit for qualifying renewable energy installations.
Who is eligible for the OK Renewable Energy Income Tax Credit?
The program is available to residential customers in Oklahoma. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Oklahoma?
Oklahoma has an estimated 15.5-year payback for a 6 kW system before incentives, with about $1,068/year in modeled savings. A tax credit like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Oklahoma?
Yes - Oklahoma has 3 solar incentive programs tracked in DSIRE, including OK Net Metering. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.