Akron, OH

Ohio offers a Property Tax Exemption for solar energy systems that provides significant financial benefits to homeowners. This state tax exemption means that when you install a qualifying solar system on your property, the value it adds to your home is exempt from property taxes. Without this exemption, your property taxes would increase based on the added value of your solar installation, which typically ranges from $10,000-$30,000 for residential systems.

There are two key eligibility paths for this exemption. First, solar energy systems installed between August 14, 1979, and December 31, 1985, that meet guidelines established under Ohio law qualify for the exemption. Second, and more relevant for today’s homeowners, any solar energy facility with a nameplate capacity of 250 kilowatts or less completed on or after January 1, 2010, is exempt from property taxation. This second provision covers virtually all residential solar installations, as most home systems are well under 25 kilowatts. The exemption applies automatically and continues for the life of your solar system with no renewal requirements.

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’s market. For a typical 5-10 kW residential solar system, this could generate 5-10 SRECs annually, potentially adding hundreds of dollars in extra income each year. To qualify, your solar system must be certified by the Public Utilities Commission of Ohio (PUCO), and you’ll need to register with an SREC tracking system. There’s no set expiration date for Ohio’s SREC program, but market values can change over time as renewable energy goals evolve.

Ohio’s Net Metering program allows solar homeowners to receive credit for excess electricity their system sends back to the grid. When your solar panels produce more electricity than your home uses, that surplus energy flows to the utility grid, and you receive a credit on your monthly bill. This program is available through all major Ohio utilities including AEP Ohio, Ohio Edison, Illuminating Company, Duke Energy, AES Ohio, and Toledo Edison.

Under this monthly net metering structure, your exported solar energy is credited at a 1:1 ratio against your consumption within the same billing cycle. This means for every kilowatt-hour (kWh) you send to the grid, you get a full retail credit for one kWh on your bill. If you produce more than you consume in a month, the excess credits are carried forward to your next bill at the generation rate, which typically ranges from 5-12 cents per kWh depending on your utility provider.

There are no specific eligibility requirements mentioned beyond having a grid-connected solar system with one of the participating utilities. The program operates on a monthly settlement basis rather than annual, meaning your excess generation credits are valued at the generation rate portion of your bill rather than the full retail rate. This is an important consideration when sizing your solar system, as oversizing may result in credits that are valued less than what you paid to generate that electricity.