Ohio

Ohio offers a Property Tax Exemption for solar energy systems, which means your solar installation won’t increase your property taxes. Normally, home improvements that increase your property value also increase your property taxes, but this incentive ensures your property taxes remain the same after installing solar panels.

This exemption applies to all solar energy systems in Ohio, with no maximum system size limitation. There are two key provisions: systems installed between August 14, 1979, and December 31, 1985, are exempt if they met the guidelines established under Ohio law at that time. Additionally, any solar energy facility with a capacity of 250 kilowatts or less is exempt if installed on or after January 1, 2010. For most homeowners installing residential solar today, your system will qualify under the post-2010 provision, as typical home solar systems are well under the 250 kilowatt threshold.

Solar Renewable Energy Certificates (SRECs) in Ohio are a valuable financial incentive for homeowners with solar panel systems. When your solar panels generate electricity, you earn one SREC for every megawatt-hour (1,000 kilowatt-hours) of electricity produced. These certificates can then be sold to utility companies, who purchase them to meet their renewable energy requirements under Ohio’s Renewable Portfolio Standard.

The value of SRECs fluctuates based on market conditions, typically ranging from $10 to $50 per certificate in Ohio. For perspective, an average 7 kW residential solar system in Ohio might generate about 8-9 SRECs annually, potentially adding hundreds of dollars to your solar savings each year. Any homeowner with a grid-connected solar PV system in Ohio qualifies for this program, regardless of system size. There’s no application deadline, but it’s important to note that your system must be properly registered to participate in the SREC market, and working with a solar installer familiar with the registration process is recommended.

Ohio’s Net Metering program allows solar homeowners to receive credit for the excess electricity their systems generate and send back to the grid. Under this program, your utility company will track both the electricity you consume from the grid and the excess solar energy your system exports. Each month, these amounts are balanced against each other on a one-to-one basis, potentially reducing your electric bill significantly.

When your solar system produces more electricity than you use in a month, the excess is carried forward to your next monthly bill as a credit valued at the generation rate. This rate varies by utility company, typically ranging from 5-12 cents per kilowatt-hour. For example, AEP Ohio customers receive approximately 6-11 cents/kWh, while Duke Energy customers receive about 5-10 cents/kWh. This monthly settlement approach means you’ll always receive fair value for your solar production without annual resets that might zero out accumulated credits.

All major Ohio utilities participate in this program, including AEP Ohio, Ohio Edison, The Illuminating Company, Duke Energy, AES Ohio (formerly Dayton Power & Light), and Toledo Edison. There are no specific deadlines to enroll, but you’ll need to have a properly installed and inspected solar system connected to the grid through your utility’s interconnection process to participate. The program is designed for residential customers with solar installations, though system size limitations may apply depending on your utility.