OG&E Overview
Oklahoma Gas & Electric (OG&E) is Oklahoma's largest electric utility, serving over 870,000 customers in the Oklahoma City metropolitan area and parts of western Arkansas. The service territory includes Oklahoma City, Norman, Edmond, Moore, and surrounding communities.
Net Metering Program
OG&E offers net metering under Oklahoma's distributed generation rules, but with an important caveat: export credits are at avoided cost, not full retail rate.
| Feature | OG&E Policy |
|---|---|
| Self-Consumption | Full retail value ($0.10-0.12/kWh) |
| Excess Export Credit | Avoided cost (~$0.03-0.05/kWh) |
| System Size Limit | 100 kW residential |
| Monthly Rollover | Credits carry forward |
| Annual Settlement | Excess credits paid out |
Why Avoided Cost Matters
This is the key issue for OG&E solar customers. When your solar produces more than you use in any moment, that excess goes to the grid. OG&E credits you at avoided cost (~$0.03-0.05/kWh), not the retail rate you pay ($0.10-0.12/kWh). This means:
- Self-consumption is king: Use your solar directly for maximum value
- Don't oversize: Exporting lots of power earns pennies
- Batteries help: Store excess for evening use instead of exporting
- TOU rates help: Shift usage to maximize self-consumption
Time-of-Use Rates
OG&E offers optional time-of-use (TOU) rate plans that can improve solar economics for customers who understand how to use them.
How TOU Works with Solar
| Period | Typical Rate | Solar Strategy |
|---|---|---|
| Peak (afternoon) | Higher rates | Solar produces most here - maximum value |
| Off-Peak (nights) | Lower rates | Run appliances when rates are cheap |
| Weekends | Usually off-peak | Use solar directly, store excess |
TOU + Battery Strategy
The ideal OG&E solar setup with TOU rates:
- Solar produces during peak afternoon hours (highest value)
- Use solar directly for daytime loads
- Battery stores excess instead of exporting at avoided cost
- Battery powers evening loads during higher-rate hours
- Charge battery from grid only during off-peak (if needed)
This strategy maximizes the value of every kWh your system produces and minimizes low-value exports.
Rates & Economics
OG&E's low electricity rates are good for customers but challenging for solar economics:
| Metric | OG&E | National Average |
|---|---|---|
| Average Rate | $0.10-0.12/kWh | $0.16/kWh |
| Peak Sun Hours | 5.0-5.5 | 4.5 |
| Production | 1,450-1,600 kWh/kW | 1,200-1,400 kWh/kW |
| Export Credit | Avoided cost | Varies by state |
Solar Economics for OG&E Customers
No federal tax credit for purchases. The residential ITC (25D) expired at the end of 2025. PPA/Lease options still benefit from 30% through 2027.
| System | Gross Cost | Annual Savings | Payback |
|---|---|---|---|
| 5 kW | $12,500-15,000 | $600-800/yr | 16-20 years |
| 7 kW | $17,500-21,000 | $850-1,100/yr | 16-20 years |
| 10 kW | $25,000-30,000 | $1,200-1,500/yr | 17-20 years |
Note: Savings assume high self-consumption. Significant exports would reduce annual savings due to avoided-cost credits.
Federal Tax Credit Status (2026)
| Purchase Type | Federal Credit | Notes |
|---|---|---|
| Cash/Loan | None (25D expired) | No homeowner credit available |
| PPA/Lease | 30% (through 2027) | Company claims credit, you benefit from lower rates |
Oklahoma State Incentives
Oklahoma has limited solar incentives:
- Property tax exemption: Solar systems exempt from property tax
- No state tax credit: Oklahoma does not offer a state solar credit
- No sales tax exemption: Solar equipment subject to sales tax
- No SREC market: No renewable energy credit program
Interconnection Process
OG&E's interconnection process follows Oklahoma distributed generation rules:
- Application: Submit distributed generation application to OG&E
- Engineering Review: OG&E reviews system design (2-4 weeks)
- Agreement: Sign interconnection agreement
- Installation: Installer completes work
- Inspection: City/county electrical inspection
- Commissioning: OG&E installs bi-directional meter, activates system
Timeline is typically 4-8 weeks from application to permission to operate. The process is straightforward for residential systems under 25 kW.
The Bottom Line
OG&E territory has excellent sunshine but challenging solar economics.Low electricity rates ($0.10-0.12/kWh) and avoided-cost export credits mean 15-20 year paybacks. This isn't a market for quick ROI.
Solar makes sense if:
- You want energy independence and protection from rate increases
- Environmental impact matters more than payback period
- You can maximize self-consumption with TOU rates and/or battery storage
- You're planning to stay in your home 15+ years
- PPA/Lease captures the remaining federal benefit (through 2027)
Size your system to match your usage. Overproducing and exporting at avoided cost wastes the excellent Oklahoma sunshine. Consider TOU rates and battery storage to maximize the value of every kWh.
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