Ohio Solar Panels

Ohio law requires all 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 for that energy. Excess credits roll over month to month throughout the year.

It’s important to understand how the credit rate works: electricity you consume directly from your solar panels saves you the full retail rate of approximately 13–14¢/kWh, but surplus electricity exported to the grid is credited at the lower avoided-cost (generation) rate of roughly 3.8–5.1¢/kWh depending on your utility. Ohio is one of the few states that allows you to request a cash payout for any surplus credits remaining at the end of a 12-month billing cycle, making proper system sizing especially important to avoid overproduction.

Note that rural electric cooperatives and municipal electric utilities are not required by state law to offer net metering, though some do so voluntarily — contact your provider directly to confirm. Net metering rules are subject to ongoing review by the Public Utilities Commission of Ohio (PUCO), so verify current tariff details with your utility or at puco.ohio.gov before signing a solar contract.

Ohio’s Solar Renewable Energy Credit (SREC) program is tied to the state’s Alternative Energy Portfolio Standard (AEPS), which requires utilities to source 0.5% of their electricity supply from solar energy by 2026. For every megawatt-hour (1,000 kWh) of electricity your solar system generates, you earn one SREC that can be registered and sold on the open market to utilities needing to meet their compliance obligations.

As of 2024–2025, Ohio SRECs are valued at approximately $3 to $12 per certificate. A typical residential rooftop solar system produces roughly 6 to 12 SRECs per year, translating to an estimated $18 to $144 or more in annual income depending on market conditions. To participate, you must register your system through an approved tracking platform such as M-RETS (Midwest Renewable Energy Tracking System) or PJM-GATS, and then sell your SRECs through an aggregator or broker on the open market.

Important caveats: SREC income is taxable and must be reported as income on both your Ohio state and federal tax returns. 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. 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 assessed market value, that added value will not raise your property tax bill — potentially saving you hundreds of dollars per year over the life of your system.

The exemption is administered by the Ohio Department of Development 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 whether any local filing or application steps are required.

This incentive is available statewide to all Ohio homeowners with qualifying solar installations and is one of the most straightforward and financially significant long-term benefits of going solar in Ohio. There is no annual income limit or application fee, and the exemption remains in place for the life of the system as long as it meets the capacity threshold.

Multiple sources indicate that 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 could save homeowners approximately $1,650 on a typical solar system priced around $28,710 before other incentives. If applicable, the exemption is applied at the point of purchase, meaning your installer should not charge you sales tax on qualifying equipment.

However, there is conflicting information regarding this exemption’s current validity. At least one source has reported that the Ohio Department of Taxation indicated no statewide residential sales tax exemption exists for solar equipment, while multiple other sources confirm the exemption is in place. This discrepancy makes it essential that you verify your eligibility directly with the Ohio Department of Taxation at tax.ohio.gov or by asking your solar installer to confirm the current status before relying on this exemption in your financial planning.

Until the status is definitively clarified, treat this as a potential bonus rather than a guaranteed savings. Your solar installer should be familiar with the current tax treatment of solar equipment purchases in Ohio and can provide documentation if the exemption applies to your project.

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 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. At least 50% of the loan must be used for solar energy improvements. This reduced-rate financing can meaningfully lower the monthly cost of going solar, especially for homeowners who do not have access to other low-cost financing options.

To apply, contact the Ohio Treasurer’s Office for a list of participating lenders in your area. Because the program is administered through a network of local banks and financial institutions, availability and specific terms may vary by lender. Visit the Ohio Treasurer of State’s website or call their office directly for the most current program details and a list of eligible financiers.

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 across Ohio, making it widely accessible to eligible property owners throughout the state.

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 rather than as a separate monthly loan payment. This structure can make solar financially accessible for property owners who may not qualify for traditional financing or who prefer to keep solar costs off their personal balance sheet.

Note that Ohio’s PACE program is currently designed for commercial, industrial, nonprofit, and multi-family properties — not single-family residential homeowners. If you own a qualifying commercial or multi-family property in Ohio, contact the Ohio Department of Development or your local government to identify the PACE administrator serving your area and learn about current program terms and eligibility requirements.

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 your property tax bill will be based on your home’s pre-solar value for the duration of the abatement period, regardless of how much solar increases your home’s market value.

To qualify, homeowners must make a minimum investment of $2,500 for one- and two-unit structures. Based on median Cincinnati home values, the abatement is estimated to save homeowners approximately $100 to $240 per year on property taxes, adding up to $1,000–$3,600 or more in total savings over the abatement period. The application should be submitted before or shortly after installation to ensure the abatement is properly recorded.

For application forms, eligibility requirements, and current program details, contact the City of Cincinnati’s Department of Community and Economic Development. This abatement stacks on top of the statewide Ohio property tax exemption for solar systems 250 kW or less, potentially providing additional local tax relief for Cincinnati solar homeowners.

The City of Cleveland offers a Property Tax Abatement program that exempts up to 100% of the increased assessed value of a property resulting from a solar installation. Under this program, property owners only pay taxes on the pre-improvement value of their property for 15 years, meaning the added value that solar panels bring to your home will not increase your property tax bill for a decade and a half.

This abatement is one of the most generous local solar property tax programs in Ohio, providing significant long-term savings for Cleveland homeowners who go solar. The financial benefit will vary depending on your home’s value and the size of your solar installation, but the exemption on the full increased value can translate to hundreds of dollars in annual tax savings over the 15-year abatement period.

For current eligibility requirements, application procedures, and program details, contact the City of Cleveland’s Department of Building and Housing or the Cuyahoga County Fiscal Officer’s office. As with all local abatement programs, it is important to apply in a timely manner — ideally before or shortly after your solar installation is complete — to ensure the abatement is properly recorded and applied to your property tax account.

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 who may not qualify for or prefer alternatives to traditional solar financing.

Eligibility is generally limited to single-family homes and duplexes valued at $350,000 or less. This income- and property-value-based program is designed to help moderate-income homeowners in Hamilton County access the long-term savings of solar energy without the barrier of high upfront costs or high-interest financing. The reduced interest rate can result in meaningful savings over the life of the loan compared to a standard personal loan or home equity product.

To apply or learn more about current eligibility requirements, loan terms, and the application process, contact the Hamilton County Development Office directly. Program availability and specific terms may change, so it is recommended to verify current details before beginning your solar project.

The U.S. Department of Agriculture’s Rural Energy for America Program (REAP) provides loan guarantees and competitive 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 of project costs.

Grant requests must fall between a $2,500 minimum and a $1,000,000 maximum. Applicants seeking a grant only must provide matching funds. The program is highly competitive and funding is awarded on a rolling basis, so early application is strongly encouraged. In addition to direct grants, REAP loan guarantees can help rural businesses and agricultural producers secure favorable financing for larger solar projects that might not otherwise qualify for conventional loans.

Applications are submitted through the USDA Rural Development Ohio State Office. Ohio also has a related resource through SOPEC (Southeast Ohio Public Energy Council), which offers free solar power assessments and technical assistance for small businesses and agricultural producers jointly funded by SOPEC and the USDA Renewable Energy Development Assistance (REDA) grant. Visit rd.usda.gov for current application deadlines, eligible project types, and Ohio-specific contact information.