Savings
2026 Solar Savings: Why Oklahoma Rates Make Solar Worth It
The math behind solar in Oklahoma. Real rate data, real numbers, no hype.
Eric Huggins
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October 15, 2025
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7 min read
The Numbers
What Just Happened to Oklahoma Electricity Rates
Oklahoma's two major utilities both received large rate increases within weeks of each other.
OG&E was approved for a $126.6 million rate increase in November 2024. That translates to roughly $13 more per month for the average residential customer. OG&E serves about 900,000 customers across the state.
PSO followed with a $119.5 million rate increase approved in January 2025. That adds about $12 per month for a typical residential customer using 1,100 kWh. PSO serves roughly 580,000 customers.
Combined, that is $246 million in approved rate increases. The largest in state history.
And it may not be over. PSO has a separate $597 million rate review that could add another $25 per month (about a 16% increase) if approved. Hearings concluded February 19, 2026 and a final OCC vote is expected late March or April 2026. It has not been approved yet. But the direction is clear: rates are going up.
The Cause
Why Rates Keep Climbing
Several forces are pushing electricity costs higher in Oklahoma.
Data centers are the biggest new factor. There are 18+ data center projects under construction across the state, with 36+ already operating. PSO signed a single customer agreement for over 1,000 MW of power. To put that in perspective, their previous largest customer contract was 130 MW. They have 11 additional contracts each over 50 MW.
That demand requires new infrastructure. Power plants, transmission lines, substations. Those costs get spread across all ratepayers. OG&E has proposed a 55 cents per month surcharge starting in 2026, escalating to $4.41 per month by 2031, specifically to fund data center infrastructure.
Year-over-year, Oklahoma electricity rates increased about 12.4% from May 2024 to May 2025, based on EIA data (11.51 to 12.94 cents per kWh). The current average sits around 12 cents per kWh.
Oklahoma electricity is still about 36% below the national average of 18.05 cents per kWh. That gap is closing. And once infrastructure costs for data center expansion hit ratepayers, it could close faster.
The Math
15 Years of Utility Bills vs. Solar
Let's look at what a typical Oklahoma homeowner pays over 15 years at different rate growth assumptions.
Assume a starting monthly bill of $180. That is common for a 2,000 square foot home in Oklahoma with electric heat and air.
Using a conservative 5% annual rate increase (below the recent 12.4% year-over-year jump), here is what the next 15 years look like:
| Year | Monthly Bill | Annual Cost |
|---|---|---|
| Year 1 | $180 | $2,160 |
| Year 5 | $219 | $2,626 |
| Year 10 | $279 | $3,352 |
| Year 15 | $357 | $4,278 |
Total utility cost over 15 years at 5% annual growth: approximately $46,800.
A solar system that covers most of that usage locks in your energy cost at installation. Modern panels degrade about 0.5% per year, so in year 15 they still produce over 92% of their original output. The utility keeps raising rates. You keep producing free electricity.
Cash purchase systems typically pay for themselves in 6 to 8 years. After that, the electricity your panels produce is essentially free for the remaining life of the system, which is 25 years or more.
Honest Take
What Solar Does Not Solve
Solar is not free electricity. It is prepaid electricity. You pay upfront for 25+ years of energy production. The question is whether that prepaid cost is less than what you would have paid the utility over the same period.
For most Oklahoma homeowners with reasonable roof conditions and decent sun exposure, the answer is yes. But not for everyone.
There is no federal tax credit currently available for residential solar. That changes the math compared to a few years ago. The system cost is the system cost. No 30% discount from Uncle Sam.
If you finance the system, your monthly loan payment typically matches or comes close to your current electric bill. The savings are smaller in the early years. You are trading a utility payment for a loan payment, but the loan has a payoff date. The utility bill does not.
Panels also do not eliminate your utility bill entirely. You will still have a base connection fee and may draw some grid power at night or during heavy usage periods. A realistic expectation is 80-90% reduction in your electricity costs, not 100%.
Bottom Line
Is 2026 the Right Time?
The rate environment in Oklahoma has shifted. $246 million in approved increases. A pending $597 million rate review from PSO. Data center demand growing faster than the grid can handle. Rates that jumped 12.4% in a single year.
Solar does not make sense for every home. Trees, roof angle, shade patterns and your electric usage all factor in. But for homeowners with good conditions, the math is getting harder to ignore.
A cash purchase pays for itself in 6 to 8 years. After that, your energy is free while your neighbors watch their bills climb. Financing stretches the payback but replaces an unpredictable cost with a fixed one.
The best time to go solar was before the rate increases. The second best time is before the next ones.
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