Akron, OH Solar Panels

Ohio’s Property Tax Exemption removes the added property value of your solar energy system from your property tax assessment. This means you won’t pay higher property taxes even though solar panels typically increase your home’s value. The exemption applies to solar energy systems with a nameplate capacity of 250 kilowatts or less that were installed on or after January 1, 2010.

The financial benefit varies based on your home’s location and local tax rates, but it can save you hundreds of dollars annually. For example, if your solar system adds $20,000 to your property value and your local property tax rate is 2%, you would save approximately $400 per year in property taxes. This exemption continues for as long as you own the system, providing ongoing savings throughout the life of your solar installation.

To qualify, your solar system must have been completed on or after January 1, 2010, and the total capacity must be 250 kilowatts or less—which covers virtually all residential installations. There is no application deadline, as the exemption automatically applies to eligible systems. Keep in mind that this exemption only applies to real property taxes and doesn’t affect other aspects of your property assessment or homeowner obligations.

Unfortunately, Ohio does not currently have an active Solar Renewable Energy Certificate (SREC) market or program. While some states allow solar system owners to earn and sell SRECs as a way to generate ongoing income from their solar energy production, Ohio has not established this type of incentive program for residential solar customers.

If you’re considering solar in Ohio, you may still be eligible for other incentives such as local utility programs, property tax exemptions, or sales tax exemptions on solar equipment. It’s worth checking with your local utility company and exploring federal incentives that may apply to your situation. Your solar installer can help you identify all available savings opportunities to make your solar investment more affordable.

Net metering in Ohio allows homeowners with solar panels to receive credit for the excess electricity their system produces and sends back to the power grid. When your solar panels generate more energy than your home uses during the day, that surplus electricity flows to the grid, and you receive a credit on your utility bill. This credit offsets the cost of electricity you draw from the grid when your panels aren’t producing enough power, such as at night or on cloudy days.

In Ohio, net metering works on a monthly basis across all major utilities, including AEP Ohio, Duke Energy, FirstEnergy companies (Ohio Edison, Cleveland Electric, Toledo Edison), and AES Ohio. Each month, the electricity you export to the grid is credited against your total consumption on a 1-to-1 basis at the full retail rate. If you produce more than you consume in a given month, the excess credits carry forward to your next bill, but they’re valued at the lower generation rate—typically between 5 to 12 cents per kilowatt-hour, depending on your utility provider. This generation rate is significantly less than the full retail rate you’d normally pay for electricity.

All residential solar customers in Ohio are eligible for net metering, though you’ll need to work with your utility company to set up the proper metering equipment and interconnection agreement. There are no specific deadlines for enrolling in net metering—it’s an ongoing program available to solar homeowners. Keep in mind that excess credits are settled monthly at the generation rate rather than accumulating indefinitely, so the financial benefit is maximized when your solar production closely matches your annual consumption.