Ohio Solar Panels

Ohio law requires 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 offer net metering for residential solar systems up to 25 kW. When your solar panels produce more electricity than your home uses, the surplus is sent to the grid and your utility credits your account. Those credits roll over month to month, so you can bank summer surplus and draw it down in winter.

It’s important to understand that Ohio does not offer full retail-rate net metering. Credits are applied at the per-kWh generation charge rate — typically around $0.11 per kWh — while you pay roughly $0.17 per kWh for electricity you draw from the grid. Your system must be sized primarily to offset your own electricity use and cannot exceed 120% of your annual electricity requirements. Note that electric cooperatives such as South Central Power are not required to offer net metering.

To participate, contact your utility after your system is interconnected and request enrollment in their net metering tariff. AES Ohio charges a one-time meter-exchange fee of approximately $95–$130. For the most current tariff details, visit your utility’s official website or contact the Public Utilities Commission of Ohio (PUCO) at (614) 466-3016.

Ohio’s Solar Renewable Energy Credit (SREC) program lets residential solar owners earn one SREC for every megawatt-hour (1,000 kWh) of electricity their system produces. Utilities are required to purchase SRECs to comply with Ohio’s Alternative Energy Portfolio Standard (AEPS), which mandates that 0.5% of the state’s electricity supply come from solar sources by 2026. You register your system through a tracking platform such as M-RETS (Midwest Renewable Energy Tracking System) or PJM-GATS, and then sell your SRECs on the open market.

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 $144 or more in annual income depending on market conditions. The SREC program is currently scheduled to expire on January 1, 2028, so homeowners who install solar now can still benefit through the end of the program.

Keep in mind that SREC income is taxable and must be reported as income on your Ohio state and federal tax returns. To get started, contact the Public Utilities Commission of Ohio (PUCO) at puco.ohio.gov for guidance on registration and approved tracking systems.

Under Ohio Revised Code Section 5727.76, solar energy systems with an aggregate nameplate capacity of 250 kW or less are fully exempt from real property taxation and public utility tangible personal property taxes, provided the system was constructed or installed on or after January 1, 2010. This means that even though adding solar panels typically increases your home’s market value, that added value will not raise your property tax bill.

The exemption is administered by the Ohio Development Services Agency in coordination with local county commissioners and county auditors. Because implementation can vary by county, it is important to contact your local county auditor’s office directly to confirm how the exemption is applied in your area and to ensure your system is properly registered for the benefit.

This incentive is available statewide and applies automatically to qualifying systems, but proactive communication with your county auditor is recommended to avoid any inadvertent tax increases on your property assessment after installation.

Ohio provides a sales tax exemption on qualifying solar energy equipment, including solar panels, inverters, racking hardware, 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 priced around $28,710 before incentives. The exemption is applied at the point of purchase, so you should not be charged sales tax by your installer on qualifying equipment.

Note that there is some conflicting information online about this exemption. At least one source has reported that the Ohio Department of Taxation indicated no statewide residential sales tax exemption exists, while multiple other sources confirm the exemption is in place. We strongly recommend verifying your eligibility directly with the Ohio Department of Taxation (tax.ohio.gov) or your solar installer before relying on this exemption in your financial planning.

A separate, clearly established 100% sales tax exemption exists for commercial and industrial solar installations under Ohio’s Energy Conversion and Thermal Efficiency Sales Tax Exemption, administered by the Ohio Department of Taxation. Commercial or industrial buyers should reference this program specifically when purchasing solar equipment.

The ECO-Link (Energy Conservation for Ohioans) program is administered by the Ohio Treasurer of State and helps homeowners finance solar panel and battery storage installations at reduced interest rates. The program works through Ohio’s Linked Deposit Program: the state deposits funds with participating banks at a below-market rate, and those banks pass the savings on to borrowers in the form of an interest rate reduction of up to 3% below the prevailing market rate.

Eligible homeowners can borrow up to $50,000. 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. There is no direct rebate or grant — the financial benefit comes from the reduced interest rate, which can save hundreds to thousands of dollars over the life of the loan depending on the amount borrowed and prevailing rates at the time of application.

To apply, you must work through a participating bank enrolled in Ohio’s Linked Deposit Program. A list of qualified participating financial institutions is available through the Ohio Treasurer’s Office website at treasurer.ohio.gov. Contact the Treasurer’s Office directly to confirm current program availability and participating lenders.

The City of Cincinnati offers a Property Tax Abatement for Green Buildings that allows homeowners to defer paying taxes on the increased assessed value of their property following a solar panel installation or qualifying energy-efficiency upgrade. For renovations to existing homes, the deferral period is 10 years; for new construction, the deferral extends to 15 years. This means the added home value from your solar investment is effectively shielded from property taxes for the duration of the abatement.

Estimated savings from this abatement range from approximately $100 to $240 per year on property taxes, based on median Cincinnati home values, though actual savings will depend on your home’s assessed value and the size of your solar system. This program stacks on top of Ohio’s statewide property tax exemption for solar systems 250 kW or less, potentially providing additional local benefit.

To apply or learn more about eligibility requirements and the application process, contact the City of Cincinnati directly at cincinnati-oh.gov. It is advisable to apply before or shortly after your solar installation to ensure the abatement is in place before your next property assessment.

The City of Cleveland offers a property tax abatement program for residential solar installations that can exempt up to 100% of the increased assessed value of your home attributable to the solar energy system. This means that even as your home’s market value rises due to the addition of solar panels, your property tax bill will not increase as a result of that added value during the abatement period.

This local abatement complements Ohio’s statewide property tax exemption for solar systems of 250 kW or less, and together they provide Cleveland homeowners with strong protection against property tax increases following a solar installation. The combined effect can represent meaningful long-term savings over the life of your solar system.

For specific eligibility requirements, application procedures, and program details, contact the City of Cleveland directly at clevelandohio.gov. It is recommended to initiate the abatement application process in coordination with your solar installation to avoid any gap in coverage.

Hamilton County’s Home Improvement Program (HIP), administered by the Hamilton County Development Office, provides qualified homeowners with access to low-interest financing for energy-efficient upgrades, including solar panel installations. Loans of up to $50,000 are available at a 3% reduced interest rate compared to standard market rates, making solar more financially accessible for Hamilton County residents.

Eligibility is generally limited to single-family homes and duplexes valued at $350,000 or less. Multi-family buildings may also qualify without a property value cap. This program can be used in conjunction with other state and local incentives, such as Ohio’s statewide property tax exemption and the ECO-Link program, to further reduce the net cost of going solar.

To apply or confirm current program availability and eligibility requirements, contact the Hamilton County Development Office directly. Program terms and funding availability may change, so it is advisable to reach out early in your solar planning process.

Ohio’s Property-Assessed Clean Energy (PACE) program is a financing mechanism that allows commercial, retail, industrial, nonprofit, and multi-family property owners to cover 100% of the upfront costs of solar energy installations with no out-of-pocket expense at the time of installation. The program is administered in collaboration with local governments, which connect property owners with approved capital providers and contractors.

PACE loans feature fixed interest rates and repayment terms of 15 to 25 years. Repayment is structured as a special assessment on the property, meaning payments are made alongside property tax bills. Because the financing is tied to the property rather than the borrower, it can be an attractive option for property owners who may not qualify for traditional financing or who prefer to preserve their credit lines.

Note that Ohio’s PACE program is primarily designed for commercial and non-residential properties. Residential homeowners should explore the ECO-Link program or Hamilton County HIP as alternative financing options. For more information on Ohio PACE, contact your local government or visit the Ohio Facilities Construction Commission website.

The Solar for All program is a federal initiative funded under the Inflation Reduction Act (IRA) and administered nationally by the U.S. Environmental Protection Agency (EPA). In Ohio, the program is being implemented by the Ohio Air Quality Development Authority (OAQDA) and the Ohio Environmental Protection Agency, which received a $156 million grant to expand solar access for low- and moderate-income (LMI) households and underserved communities throughout the state.

The program is designed to provide grants and low-cost financing opportunities that make rooftop and community solar installations financially viable for households that might otherwise be unable to afford them. Cuyahoga County is among the communities participating through the Industrial Heartland Solar Coalition, and the program is expected to reach several dozen communities across Ohio.

As of 2026, the program is still being developed and specific application processes are being finalized. Eligible low- and moderate-income Ohio homeowners should monitor the Ohio Air Quality Development Authority’s website at oaqda.ohio.gov and the EPA’s Solar for All page for updates on when and how to apply. Priority will be given to households in designated low-income and disadvantaged communities.

The U.S. Department of Agriculture’s Rural Energy for America Program (REAP) provides loan guarantees and grants to agricultural producers and small rural businesses for the purchase and installation of renewable energy systems, including solar panels and battery storage. Ohio rural property owners and agricultural businesses may be eligible to receive grant funding covering up to 50% of eligible project costs, with loan guarantees available for the remaining portion.

To qualify, applicants must be agricultural producers with at least 50% of their gross income coming from agricultural operations, or small businesses located in eligible rural areas. The program is designed to reduce energy costs, promote energy independence, and support rural economic development. Grant and loan amounts vary based on project size, type, and available funding in a given fiscal year.

Applications are submitted through the USDA Rural Development Ohio State Office. Funding is competitive and awarded on a rolling basis, so early application is encouraged. Visit the USDA Rural Development website at rd.usda.gov for current application deadlines, eligible project types, and contact information for Ohio-specific assistance.

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 at least 3 kWh. This credit applies to both standalone battery systems and batteries installed alongside solar panels. For systems installed and placed in service by December 31, 2025, the 30% credit is clearly available and is claimed by filing IRS Form 5695 with your federal tax return.

For battery storage systems installed in 2026 or later, the status of this credit is uncertain following recent legislative changes (the “One Big Beautiful Bill”). The residential solar ITC has been eliminated, and the future of the battery storage credit for new 2026 installations should be confirmed with a qualified tax professional before you rely on it in your financial planning. If you installed a qualifying battery system in 2025, you can still claim the credit when you file your 2025 taxes in 2026.

To claim the credit for an eligible installation, complete IRS Form 5695 (Residential Energy Credits) and attach it to your federal tax return. The credit is non-refundable, meaning it can reduce your federal tax liability to zero but will not result in a refund. Any unused credit may be carried forward to future tax years. Consult a tax advisor for guidance specific to your situation and for the latest legislative updates.