Has anyone worked with OG&E's virtual net metering program in Oklahoma? I have a client considering a community solar subscription but the rate structure seems convoluted. They're offering credits at "avoided cost" rather than retail rates, which could be significantly lower. The program literature mentions credits of 3.2 cents per kWh versus retail rates around 11 cents. Seems like a raw deal compared to traditional rooftop net metering.
OG&E virtual net metering rates
Susan, that's unfortunately pretty typical for virtual net metering programs. Here in Missouri, Ameren's community solar gives avoided cost credits too, which runs about 2.8 cents versus 9.5 cent retail. The utilities argue that community solar doesn't provide the same grid benefits as distributed rooftop systems. From a pure financial standpoint, your client is probably better off with rooftop if they have suitable space and roof conditions.
The math on community solar rarely works out favorably for residential customers. Here in San Antonio, CPS Energy's SolarHost program has similar economics - you're essentially buying renewable energy certificates rather than getting true net metering credits. Unless your client has shading issues, structural problems, or rental property, traditional rooftop solar with full retail net metering will provide much better returns. The 7-8 cent differential adds up quickly over 20 years.
That's what I was afraid of. The client lives in a condo so rooftop isn't an option, which is why we're looking at community solar. But paying $45/month for a 1kW subscription that only saves $22/month in avoided cost credits doesn't make financial sense. I might have to tell them to wait for better program terms or consider other efficiency measures instead.
Susan, for condo residents, energy efficiency upgrades usually provide better ROI than community solar subscriptions. Things like heat pump water heaters, smart thermostats, and LED lighting can cut bills by 15-25% with much shorter payback periods. Save the solar conversation for when Oklahoma passes more favorable community solar regulations or OG&E improves their credit structure. The current program seems designed more for utility PR than customer benefits.