Exhibit 5
[Baker
& Hostetler LLP Letterhead]
March
5,
2007
Telkonet,
Inc.
20374
Seneca Meadows Parkway
Germantown,
Maryland 20876
Gentlemen:
We
have
acted as counsel to Telkonet, Inc., a Utah corporation (the “Company”), in
connection with the Company’s Registration Statement on Form S-3 (the
“Registration Statement”) filed under the Securities Act of 1933, as amended
(the “Act”), relating to the registration of 6,600,000 shares of common stock,
par value $0.001 per share (the “Common Shares”), of the Company, which have
been included in the Registration Statement for the account of the persons
identified in the Registration Statement as the selling stockholders.
In
connection with the foregoing, we have examined: (a) the Articles of
Incorporation of the Company, as amended, (b) the Bylaws of the Company, as
amended, and (c) such records of the corporate proceedings of the Company
and such other documents as we deemed necessary to render this opinion.
Based
on
such examination, we are of the opinion that the issued and outstanding Common
Shares are legally issued, fully paid and nonassessable and the Common Shares
subject to acquisition upon exercise of the Stock Purchase Warrants held by
the
selling stockholders (the “Warrants”), when paid for and issued in accordance
with the Warrants, will be legally issued, fully paid and nonassessable.
We
hereby
consent to the use of this Opinion as Exhibit 5 to the Registration
Statement and the reference to our firm under the heading “Legal Matters” in the
Registration Statement.
Very
truly yours,
/s/
Baker & Hostetler LLP