Oklahoma Rebates

Right now, all electric companies in Oklahoma are offering some sort of rebate for installing geothermal. Those rebates range anywhere from $375 a ton (OG&E) to $1,800 a ton (Edmond.) This is a great deal for the homeowner because the electric company writes the homeowner a check upon completion of the geothermal installation, which quickly makes up for geothermal’s higher up front cost.

The amount of that check is dependent upon the capacity installed. For example, if the homeowner is an OG&E ($375 per ton) customer and they install a 3-ton geothermal system they would be getting a check for $1,125 upon completion. That’s real money. For another example, if an Edmond Electric ($1,800 per ton) customer installs a 4-ton geothermal system they would be getting a check for $7,200 upon completion. That’s more real money.

What about the feds?

Until 2018 the federal government is offering a 30% federal tax credit on geothermal installations. That 30% is taken off of the total installed price. So, if you install a geothermal unit in your home and the total installed price is $20,000, then you would get $6,000 in the form of a tax credit from the feds. How nice.

Unlike other HVAC equipment, there is not a limit on the tax credit. It’s simply 30% of the installed price, whether that’s $16,000 or $60,000. And, the credit has an 8-year carry forward, just in case you don’t want to (or can’t) use it all in one year. For more details on the ins and outs of how to apply that tax credit, contact your accountant.

The Payoff

So, between a local electric company rebate and the 30% federal tax credit, geothermal in Oklahoma has never been more economically feasible. Geothermal has always required a higher up front investment when compared to conventional HVAC, but with these current financial incentives the playing field is fairly level, if not slanted in geothermal’s favor. And to prove that, one final example…

An Edmond Electric ($1,800 per ton) customer installs a 4-ton geothermal system. If the total installed price were $20,000, the math would work out as follows:

4-ton geothermal installed price        $20,000
30% federal tax credit                       ($6,000)
Edmond Electric’s rebate                    ($7,200)
Total Installed Cost                                $6,800

There’s a litany of reasons why a homeowner should install geothermal instead of a conventional HVAC system, but we will address that in part 2. If the upfront price difference is what keeps you from choosing geothermal, maybe it’s time to reconsider. Come on Oklahoma, this decision makes sense.