Ohio Solar Panels

Ohio’s net metering program allows residential solar customers of investor-owned utilities — including AEP Ohio, Duke Energy Ohio, AES Ohio, and FirstEnergy’s Ohio utilities (Ohio Edison, Cleveland Electric Illuminating, and Toledo Edison) — to earn credits for excess electricity their solar panels send to the grid. Credits are carried forward month to month on a continuous basis, regardless of when your system was installed. System size is capped at 120% of your average annual electricity usage.

It’s important to note that Ohio does not offer full retail-rate net metering. Utilities credit exported solar energy at the per-kWh generation charge rate — approximately $0.11 per kWh — rather than the full retail rate of around $0.17 per kWh. This means you’ll save more by consuming your solar energy directly than by exporting it. Ohio is one of the few states that allows you to request a cash payout for any surplus credits remaining after a 12-month billing cycle.

Note that net metering rules currently apply only to investor-owned utilities; municipal electric utilities and rural electric cooperatives set their own policies, and some cooperatives (such as South Central Power) do not offer net metering. Ohio’s net metering rules are currently under regulatory review by PUCO (Case 12-2050-EL-ORD), and changes — including a potential shift to net billing — may occur in the future. Contact your utility directly to confirm current terms.

Ohio’s Solar Renewable Energy Credit (SREC) program allows homeowners with solar panels to earn one SREC for every 1,000 kilowatt-hours (kWh) — or 1 megawatt-hour (MWh) — of electricity their system generates. These certificates can be sold on the open market to electric utilities, which purchase them to comply with Ohio’s Alternative Energy Portfolio Standard (AEPS) solar carve-out requirement of 0.5% of the state’s electricity supply by 2026.

As of 2024–2025, Ohio SRECs are valued at approximately $3 to $12 per certificate. A typical residential rooftop solar system generates roughly 6 to 12 SRECs per year, translating to an estimated $18 to $60 or more in annual income depending on market conditions. Be aware that SREC income is taxable and must be reported as income on your Ohio tax return. You can apply for SRECs through the Public Utilities Commission of Ohio (PUCO).

This program is scheduled to expire on January 1, 2028. Homeowners who install solar now can still benefit from SREC income through the end of the program. SREC values fluctuate based on market supply and demand, so actual earnings may vary. Contact PUCO or a registered SREC aggregator for current market pricing and registration details.

Under the Ohio Revised Code, solar energy systems with an aggregate nameplate capacity of 250 kW or less are exempt from real property taxation and public utility tangible personal property taxes, provided construction or installation was completed on or after January 1, 2010. This means that adding solar panels to your home will not increase your property tax bill, even though solar typically adds value to a home.

This exemption is administered through the Ohio Development Services Agency and local county commissioners. For residential rooftop systems — which are almost always well under 250 kW — this exemption applies automatically in most cases, though you may need to file documentation with your county auditor. The financial benefit depends on your local property tax rate and the value added by your solar system, but it can represent meaningful ongoing savings over the life of your system.

This incentive is primarily relevant for residential and small commercial solar installations. Larger commercial or utility-scale projects may have different eligibility requirements. Contact your county auditor’s office or the Ohio Department of Taxation to confirm the exemption process in your specific county.

Ohio provides a sales tax exemption on the purchase of solar energy equipment, including solar panels, inverters, racking, and solar battery storage systems. With Ohio’s state sales tax rate at 5.75%, this exemption can save homeowners approximately $1,650 on a typical solar system costing around $28,710 before incentives. This is a one-time savings applied at the point of purchase, directly reducing your upfront installation cost.

The exemption covers equipment used for energy conversion and thermal efficiency purposes under Ohio’s commercial and residential tax code. Your solar installer should automatically apply this exemption at the time of sale — you do not need to apply separately. If sales tax is charged in error, you may be able to request a refund through the Ohio Department of Taxation.

Note: There has been some conflicting information in the marketplace about whether this exemption applies statewide. Multiple sources confirm the exemption exists under Ohio’s Energy Conversion and Thermal Efficiency Sales Tax Exemption. We recommend confirming applicability with your installer and the Ohio Department of Taxation prior to purchase to ensure you receive this benefit.

The Energy Conservation for Ohioans (ECO-Link) program, administered by the Ohio Treasurer of State, helps homeowners finance solar panel installations and other renewable energy upgrades at below-market interest rates. Through this linked deposit program, the Ohio Treasury subsidizes participating banks to offer borrowers a 3% reduction off the standard market interest rate on qualifying loans — making solar financing significantly more affordable.

Eligible homeowners can borrow up to $50,000 through the program. Loans up to $25,000 are available on 5-year terms, while loans between $25,000 and $50,000 are available on 7-year terms, both with the 3% rate reduction. To apply, you must work through a participating bank enrolled in Ohio’s Linked Deposit Program. A list of qualified participating banks is available through the Ohio Treasurer’s office website.

This program is open to Ohio homeowners looking to install solar panels, solar battery storage, or make other qualifying renewable energy improvements. There is no direct rebate or grant — the benefit comes in the form of reduced loan interest, which can save hundreds to thousands of dollars over the life of the loan depending on the amount borrowed. Contact the Ohio Treasurer’s office or visit their website to find a participating lender near you.

The federal Residential Clean Energy Credit under IRS Section 25D provides a 30% tax credit on the cost of new battery storage systems with a capacity of 3 kWh or larger. This credit applies to both standalone battery systems and batteries installed alongside solar panels. The credit is claimed using IRS Form 5695 when you file your federal income taxes for the year the system is placed in service.

While the residential solar Investment Tax Credit (ITC) for new solar panel installations was eliminated at the end of 2025 under the “One Big Beautiful Bill,” the status of the battery storage credit under Section 25D for 2026 and beyond should be confirmed with a qualified tax professional, as legislative changes may affect eligibility. If eligible, a 30% credit on a $10,000 battery system would represent $3,000 in direct tax savings.

To claim this credit, the battery system must be installed at your primary or secondary U.S. residence, and the credit is non-refundable — meaning it can reduce your federal tax liability to zero but will not result in a refund for any excess amount. Unused credit may be carried forward to future tax years. Consult a licensed tax advisor or CPA to confirm your eligibility and the current status of this credit for 2026 installations.

The City of Cincinnati offers a Property Tax Abatement for Green Buildings that allows homeowners to defer paying increased property taxes resulting from solar panel installation or other qualifying energy-efficiency upgrades. This program is designed to encourage sustainable building improvements by removing the disincentive of higher property tax bills after making green investments.

The abatement provides a 10-year tax deferral for qualifying renovations to existing homes and a 15-year deferral for new construction. During the abatement period, the increased assessed value attributable to the solar installation is not subject to property taxes, which can save homeowners between $100 and $240 or more annually depending on the system size and local tax rates.

To take advantage of this program, Cincinnati homeowners should contact the City of Cincinnati’s Department of Buildings and Inspections or the city’s Community Development office to confirm current eligibility requirements, application procedures, and any minimum project thresholds. This incentive is available only within Cincinnati city limits and is separate from the statewide property tax exemption for solar systems.

The City of Cleveland offers a residential property tax abatement program for homeowners who invest in building upgrades, including solar panel installations. Under this program, up to 100% of the increased assessed value of your property resulting from the solar installation can be exempted from property taxes for the duration of the abatement period.

This incentive is particularly valuable in Cleveland, where property tax rates can be significant. By shielding the added home value from taxation, homeowners can enjoy the financial and energy benefits of solar without the burden of a higher annual tax bill. The abatement complements the statewide property tax exemption for solar systems under 250 kW.

Eligibility requirements, application procedures, and abatement durations are set by the City of Cleveland. Homeowners interested in this program should contact the City of Cleveland’s Department of Building and Housing or the Cuyahoga County Fiscal Officer’s office to confirm current program terms, application deadlines, and any qualifying criteria before installation.

Hamilton County’s Home Improvement Program (HIP) provides qualified homeowners with access to low-interest financing for energy-efficient home upgrades, including solar panel installations. The program offers loans of up to $50,000 at a 3% reduced interest rate compared to standard market rates, making it easier and more affordable to go solar without a large upfront cash outlay.

Eligibility for the HIP program includes single-family homes and duplexes valued at $350,000 or less. Multi-family buildings may also qualify without a property value cap. The reduced interest rate can result in significant savings over the life of the loan compared to conventional financing options, effectively lowering the total cost of your solar investment.

This program is available only to property owners within Hamilton County, Ohio. To apply, contact the Hamilton County Development office or your local county government office for current application requirements, income eligibility criteria, and participating lenders. Program availability and terms may change, so confirm details directly with the county before proceeding.

The Ohio Property Assessed Clean Energy (PACE) program is a specialized financing mechanism that allows commercial, retail, industrial, nonprofit, and multi-family property owners to fund 100% of the upfront costs of solar energy installations with no money down. The loan is repaid over a fixed term of 15 to 25 years through an assessment added to the property’s tax bill, making it a unique and accessible financing option for larger-scale solar projects.

Ohio PACE collaborates with local governments to connect property owners with approved capital providers and vetted contractors. Because repayment is tied to the property rather than the individual borrower, PACE financing can be easier to qualify for than traditional loans, and the obligation may transfer to a new owner if the property is sold. Fixed interest rates provide payment predictability over the life of the financing term.

This program is primarily designed for commercial and multi-family properties rather than single-family residences. Eligible solar projects can include rooftop systems, carport installations, and other on-site generation. To learn more or begin the application process, visit the official Ohio PACE website at ohiopace.org or contact your local government energy office to find approved PACE providers operating in your area.

The USDA Rural Energy for America Program (REAP) provides grants and loan guarantees to eligible rural small businesses and agricultural producers in Ohio who invest in renewable energy systems, including solar panel installations. Grants can cover up to 25% of total eligible project costs, significantly reducing the net cost of going solar for qualifying applicants. This is a federal program administered locally in Ohio through the Sustainable Ohio Public Energy Council (SOPEC).

To be eligible, applicants must be either an agricultural producer (farmer or rancher) or a small business located in a rural area as defined by USDA guidelines. The solar system must be installed at the business or agricultural operation, and the project must meet minimum technical and financial feasibility requirements. Grant applications are competitive and evaluated on a scoring basis, so early and thorough applications are recommended.

REAP grants can be combined with other financing tools such as PACE loans or the ECO-Link program to further reduce project costs. Applications are accepted on a rolling basis, with funding cycles typically announced by the USDA. Ohio applicants should contact SOPEC or the USDA Ohio Rural Development office for current application windows, eligible project costs, and required documentation.