Is Solar Worth It in Oklahoma in 2026?
Oklahoma has two things going for solar and one thing working against it. In its favor: strong sun (roughly 1,517 kWh per installed kilowatt per year around Oklahoma City, at a useful 35.6°N latitude) and some of the cheapest install pricing in the country, around $2.40 to $2.70 per watt. Working against it: Oklahoma electricity is also cheap, about 13.1¢ per kWh, so every kilowatt-hour your roof makes offsets a smaller bill than it would in California or Massachusetts. Cheap panels plus cheap power roughly cancel out.
Then 2026 removed the tiebreaker. The 30 percent federal tax credit that used to shave thousands off an Oklahoma install ended for systems completed after December 31, 2025. There's no state credit to fill the gap — Oklahoma never had one. What's left is a decent production climate, low sticker prices, and a payback period that runs longer than a salesperson's slide deck will usually admit: roughly 12 to 15 years on a typical home. That can still work if you have a high bill, a good south-facing roof, and plan to stay put. It's a much weaker case if any of those aren't true. This page gives you Oklahoma's real numbers so you can decide for yourself.
Oklahoma Electricity Prices
Solar is a bet on future electricity prices — every kilowatt-hour your roof makes is one you don't buy from the utility. Here's where Oklahoma rates have been, from federal EIA data.
Full Oklahoma electricity price data (1990–2025)
| Year | Oklahoma (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 6.6 | 7.8 |
| 1991 | 7.0 | 8.0 |
| 1992 | 7.2 | 8.2 |
| 1993 | 7.1 | 8.3 |
| 1994 | 7.0 | 8.4 |
| 1995 | 6.8 | 8.4 |
| 1996 | 6.7 | 8.4 |
| 1997 | 6.6 | 8.4 |
| 1998 | 6.6 | 8.3 |
| 1999 | 6.6 | 8.2 |
| 2000 | 7.0 | 8.2 |
| 2001 | 7.3 | 8.6 |
| 2002 | 6.7 | 8.4 |
| 2003 | 7.5 | 8.7 |
| 2004 | 7.7 | 9.0 |
| 2005 | 8.0 | 9.5 |
| 2006 | 8.6 | 10.4 |
| 2007 | 8.6 | 10.7 |
| 2008 | 9.1 | 11.3 |
| 2009 | 8.5 | 11.5 |
| 2010 | 9.1 | 11.5 |
| 2011 | 9.5 | 11.7 |
| 2012 | 9.5 | 11.9 |
| 2013 | 9.7 | 12.1 |
| 2014 | 10.0 | 12.5 |
| 2015 | 10.1 | 12.7 |
| 2016 | 10.2 | 12.6 |
| 2017 | 10.6 | 12.9 |
| 2018 | 10.3 | 12.9 |
| 2019 | 10.2 | 13.0 |
| 2020 | 10.1 | 13.2 |
| 2021 | 11.0 | 13.7 |
| 2022 | 12.4 | 15.0 |
| 2023 | 12.1 | 16.0 |
| 2024 | 12.2 | 16.5 |
| 2025 * | 13.1 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Oklahoma residential rates have climbed about 65 percent since 2005, landing around 13.1¢ per kWh in 2025 (EIA preliminary), and the last decade's pace has been roughly 2.6 percent a year. That's a real, sustained climb — but Oklahoma still sits well under the national average, which is exactly why solar payback here takes longer than in high-rate states. The trend still matters for your decision: a system sized today keeps offsetting rates that are very likely to keep drifting upward over its 25-year life, even if the starting point is modest.
The Oklahoma Sun
Panels respond to how high the sun climbs and how long it stays up, not to air temperature. At 35.6°N, Oklahoma sits in a solid mid-latitude band — high enough that winter production drops off noticeably, but far enough south that summer days run long and strong.
Oklahoma monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 118 |
| Feb | 112 |
| Mar | 130 |
| Apr | 134 |
| May | 130 |
| Jun | 136 |
| Jul | 140 |
| Aug | 140 |
| Sep | 128 |
| Oct | 131 |
| Nov | 119 |
| Dec | 99 |
| Year | 1517 |
Source: NREL PVWatts typical-year estimate (Oklahoma City), per installed kW at latitude tilt.
The practical read: late spring through summer is when an Oklahoma system does its best work, which lines up conveniently with the season air conditioning drives your bill up. Winter production is meaningfully lower, so don't size a system purely off a mild-month bill — pull a full year.
What Solar Costs in Oklahoma in 2026
Oklahoma is genuinely cheap to install in. Multiple industry trackers put the state around $2.35 to $2.70 per watt installed, roughly 20 percent below the national average near $3.00/W — with some retail quotes running as high as $3.20/W depending on brand and installer. Use $2.40 to $2.70/W as your realistic planning range, and remember there's no federal credit in 2026 to net against any of these numbers.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $12,000 to $13,500 | ~7,585 kWh/yr (~$83/mo at 13.1¢) | Smaller home, lower usage |
| 8 kW | $19,200 to $21,600 | ~12,136 kWh/yr (~$132/mo) | Average Oklahoma home |
| 12 kW | $28,800 to $32,400 | ~18,204 kWh/yr (~$199/mo) | Large home, electric heat or pool |
Oklahoma does not exempt solar equipment from sales tax, so expect the standard state (4.5 percent) plus local combined rate on top of the equipment and, typically, installation labor bundled into the contract. Factor that into every quote — it's one more place Oklahoma differs from states that carve out an exemption.
Estimate Your Oklahoma Payback
The calculator below starts from Oklahoma's average electricity rate and typical local sun production. Enter your own monthly bill to see an estimated system size, payback period, and 25-year savings. Oklahoma rates have risen about 2.6 percent a year over the last decade — a reasonable default for the inflation field, though you can drag it to test a faster or slower future.
Oklahoma Solar Incentives in 2026
There isn't much left to itemize, so let's be direct about it.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit ended for installations completed after December 31, 2025, with no phase-out. If a quote still assumes it, that installer hasn't updated their numbers — a bad sign for the rest of the paperwork too.
- None — state income tax credit or rebate: Oklahoma has never offered a state solar tax credit or a residential rebate program, and there's no SREC market. As of 2026 it is, plainly, a "none" state for direct financial incentives.
- Still here — property tax exemption: The value your solar system adds to your home is shielded from raising your property tax assessment. Confirm the exact treatment with your county assessor, since practice can vary locally. This is separate from our broader electrical guide's coverage of home value upgrades generally.
- Not for you — SB 237: A 2026 bill sets a 2028 sunset on a five-year ad valorem tax exemption for commercial and utility-scale solar/battery manufacturing. That's an industrial-policy change aimed at large developers, not your rooftop — don't let an installer imply otherwise.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit through 2027, but it belongs to the leasing company. Ask whether it's actually reflected in your lease rate before assuming it's a discount.
Net Metering Under OG&E and PSO
Oklahoma's net metering rules sit under 17 O.S. § 156 and OAC 165:40:9, enforced by the Oklahoma Corporation Commission. The two big regulated investor-owned utilities, OG&E and PSO (AEP Oklahoma), must offer net metering to systems up to 300 kW, capped at 125 percent of your expected peak load.
Here's the part worth understanding before you sign anything: within a billing cycle, your production is netted against your consumption at full retail rate — that part is a straightforward, valuable offset. But any true excess beyond what you used in that cycle is bought back only at the utility's avoided-cost rate, which is considerably lower, and it's credited the following cycle. In practice this is a retail-rate offset with avoided-cost spillover, not a full buy-all/sell-all program — it rewards sizing your system to your usage rather than overbuilding to sell surplus power.
Rural electric cooperatives and municipal utilities are not required to offer net metering at all. Some, like Oklahoma Electric Cooperative and Northeast Oklahoma Electric Cooperative, do so voluntarily — but coverage outside OG&E and PSO is inconsistent, so check with your specific provider before assuming the same deal applies. Also worth knowing: OG&E has previously petitioned the OCC to shift toward avoided-cost compensation, as some other states have done. No ruling has changed the rate as of mid-2026, but a homeowner signing a 20-year financing agreement should know the retail-rate deal isn't guaranteed to be permanent.
The HOA Catch Most Installers Don't Mention
This is the part of the Oklahoma solar conversation that surprises the most people. Oklahoma has no statewide solar-access law protecting your right to install panels against an HOA's wishes. It's one of a small handful of states — with Alabama, Mississippi, Nebraska, Pennsylvania, and South Carolina — where an HOA can legally ban rooftop solar outright through its covenants, with no state-level override.
If you're not in an HOA, or yours is silent on the subject, this doesn't apply to you — just don't assume it, the way a lot of Oklahomans understandably do.
How to Go Solar in Oklahoma
Work through these steps in order.
- Pull your last 12 power bills and calculate your true average monthly cost — Oklahoma's seasonal swing between winter and summer usage is significant.
- Check your CC&Rs if you're in an HOA. Don't assume state law protects you — in Oklahoma, it doesn't.
- Confirm your roof faces south, east, or west with minimal shade, and has at least 10 to 15 years of life left before panels go on.
- Get at least three quotes and compare price per watt, equipment, and warranties — and make sure none of them are still pricing in the federal credit.
- Find out whether you're served by OG&E, PSO, a municipal utility, or a rural co-op, and confirm that utility's current net metering terms directly — don't rely on a generic answer.
- Compare each quote's realistic 12-to-15-year payback against how long you plan to stay in the home. If you might move in five years, treat solar as a possible resale bump, not a bill-reduction plan.
For how panels work, sizing, and the buy-versus-lease decision in more depth, read our main solar panels guide. Two other guides worth reading alongside this one: our roofing guide, since panels are only as good as the roof under them, and our electrical guide, since your panel and wiring condition affects what an installer can safely connect to.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Production estimates: NREL PVWatts. Net metering rules: Oklahoma Corporation Commission — Net Metering. State incentive detail: DSIRE — Oklahoma Net Metering and DSIRE — Oklahoma Property Tax Exemption. SB 237 industrial exemption sunset: Oklahoma Senate press release and Oklahoma House of Representatives. HOA covenant clarification: Winton Law. Cost benchmarks: SEIA — Oklahoma Solar, EnergySage, and SolarReviews. Sun data: Current Results — Oklahoma Sunshine by Month. We review these figures every six months.