Tulsa, OK Solar Panels

Oklahoma law provides a 100% property tax exemption for the increased home value attributable to a solar energy system. This means that even though a solar installation can add thousands of dollars to your property’s assessed value, your annual property tax bill will not increase as a result — a benefit that compounds over the 25+ year lifespan of a typical solar system.

This exemption is available to all residential homeowners who install a qualifying solar energy system on their property, including homeowners in Tulsa. Depending on your county’s mill levy rate, the annual savings can reach hundreds of dollars per year, making this one of the most straightforward long-term financial benefits available to Oklahoma solar owners.

To confirm current eligibility requirements and ensure your system qualifies, contact your local county assessor’s office before or shortly after installation. You can also reach the Oklahoma Corporation Commission at their official website for additional guidance.

Under Oklahoma law (17 O.S. § 156) and rules administered by the Oklahoma Corporation Commission (OAC 165:40:9), regulated utilities must offer net metering to residential solar customers with systems up to 300 kW. During any billing period, your solar production is netted against your consumption at the full retail energy rate — meaning you only pay for the net electricity you draw from the grid. If your system produces more than you consume, the surplus is compensated at the utility’s avoided cost rate, which typically ranges from approximately $0.02 to $0.08 per kWh depending on your utility — lower than the retail rate.

Dollar-based bill credits roll forward indefinitely and can be applied to future charges on your electric bill, including fixed service fees and any grid electricity you purchase when your panels are not producing. In Tulsa, the primary participating utility is Public Service Company of Oklahoma (PSO). Note that many rural electric cooperatives and municipal utilities are not required to offer net metering.

Important eligibility limitations apply: your installed generating capacity must not exceed 300 kW, and systems that equal or exceed 125% of your recorded peak demand at the service location may not qualify. Utilities may also apply to the Oklahoma Corporation Commission for approval to charge a fixed enrollment fee to net metering customers. Contact your specific utility to confirm current program terms before installation.

Renewable Energy Certificates (RECs) are tradeable certificates issued for every megawatt-hour (MWh) of clean electricity generated by a qualifying solar system. Oklahoma solar owners, including residents of Tulsa, can register their systems and track their RECs through the North American Renewables Registry (NAR). A 10 kW residential solar system could potentially generate approximately $300 to $1,000 in annual REC revenue, depending on market conditions and buyer demand.

It is important to understand that Oklahoma does not have an active Solar Renewable Energy Certificate (SREC) market, nor does it have a mandatory Renewable Portfolio Standard (RPS). This limits local demand for RECs and may reduce their value compared to states with strong RPS requirements. RECs are sold on the voluntary market, meaning prices can fluctuate significantly and are not guaranteed.

To get started, contact the Oklahoma Corporation Commission for guidance on registering your system, then create an account with the North American Renewables Registry (NAR) to begin tracking and selling your credits. This program is best viewed as a supplemental income opportunity rather than a primary financial incentive for going solar in Oklahoma.

The Section 25D Residential Clean Energy Tax Credit provides a 30% federal income tax credit on the full installed cost of a new battery storage system with a capacity of 3 kWh or larger. Importantly, this credit applies whether the battery is installed alongside a new solar system or added to an existing solar installation — making 2026 an excellent time to add storage. Note that while the residential solar ITC has expired, the battery storage credit under 25D remains active in 2026.

The credit is non-refundable, meaning it can reduce your federal income tax liability to zero but will not result in a cash refund. However, any unused credit can be carried forward to future tax years. If your battery installation required an upgrade to your main electrical panel, those panel upgrade costs may also be eligible under 25D, potentially increasing your total credit amount.

There is no stated dollar cap on the 25D battery storage credit, so larger systems receive proportionally larger credits. To claim the credit, file IRS Form 5695 with your federal tax return for the year the system is placed in service. Consult a qualified tax professional to confirm your eligibility and maximize your benefit.