Solar Guide
Solar in Cincinnati
Cincinnati homeowners are discovering solar energy as a smart solution to rising electricity costs. With Ohio electricity prices jumping 31% from 2020 to 2024, many residents are exploring how solar panels for home use can provide long-term savings.
This guide covers everything Cincinnati residents need to know about solar installation costs, rebates, and how solar works in Ohio’s climate.
Key Takeaways
- Cincinnati solar panels save homeowners $60,370 over 25 years while protecting against rising electricity costs.
- Ohio offers property tax exemptions and net metering that make solar installation more affordable for homeowners.
- A typical 8 kW system costs $16,365 after federal tax credits with an 8.7-year payback period.
Solar Cost Calculator
Our Cincinnati solar cost calculator uses real installation data from homeowners across Westwood, Hyde Park, Oakley, and other local neighborhoods. Get personalized pricing based on actual projects we’ve completed in your area.
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Savings
Cincinnati Electricity Prices
Cincinnati electricity costs are climbing fast, making solar installation an increasingly smart choice for local homeowners.
Ohio electricity rates jumped from 12.8 cents per kWh in 2021 to 16.1 cents in 2024—a 26% increase in just three years.
Cincinnati solar panels help homeowners lock in predictable energy costs while reducing dependence on the traditional grid and rising utility rates.
Over 25 years, Cincinnati solar installation can provide thousands in savings while protecting against future electricity price increases and market volatility.
Price of Energy: Ohio vs National Average
Cincinnati Area Utility Providers
Cincinnati residents are served primarily by Duke Energy, which charged 14.7¢ per kWh in 2023—below both Ohio’s 15.40¢ average and the national 16.0¢ average.
Duke Energy’s competitive rates reflect Ohio’s diverse energy mix and regional infrastructure investments, keeping Cincinnati electricity costs relatively affordable compared to neighboring states.
Even with lower-than-average rates, solar panels can still provide long-term value by locking in predictable energy costs and reducing dependence on utility price fluctuations.
Cincinnati Utilities Electricity Rates
Ohio Solar Incentives
Cincinnati homeowners can significantly reduce solar installation costs through various solar incentives in Ohio and federal programs available today.
These incentives include property tax exemptions that protect you from increased taxes on your home’s added value, plus net metering programs that credit excess energy production back to your account.
Understanding these programs helps Cincinnati residents make informed decisions about solar investments and maximize long-term savings potential.
$7,014
Average savings in Ohio solar rebates
Incentive | Type | Description | Source |
---|---|---|---|
Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
Property Tax Exemption | State tax exemption | No property tax on added home value from systems =250kW. Saves ~$300-500 annually on $15k system value at 2-3% tax rate. | Learn More |
Solar Renewable Energy Certificates (SRECs) | State program | Small additional income from selling certificates. 7kW system earns ~$20-40/year at current prices. Requires PUCO certification. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Ohio’s Property Tax Exemption allows homeowners with solar, wind, or hydrothermal energy systems to avoid paying property taxes on their renewable energy equipment. This state tax exemption means that even though your solar panels or other qualifying energy system may increase your home’s value, you won’t pay additional property taxes on that added value. The exemption applies to the actual equipment and fixtures that are part of your renewable energy system.
To qualify for this exemption, your energy system must have a nameplate capacity of 250 kilowatts or less, and construction or installation must be completed on or after January 1, 2010. There are no current expiration dates for this program, making it a long-term benefit for Ohio homeowners. The financial benefit varies based on your local property tax rates and the value of your system, but it can result in hundreds of dollars in annual tax savings. Keep in mind that you’ll need to work with your local tax assessor to ensure the exemption is properly applied to your property tax bill.
Solar Renewable Energy Certificates (SRECs) are tradeable credits that Ohio solar system owners earn for the clean electricity their panels produce. For every 1,000 kilowatt-hours (kWh) of solar energy your system generates, you earn one SREC that can be sold to utility companies who need these credits to meet state renewable energy requirements.
The financial value of SRECs varies based on market demand, but they typically sell for $10-50 each in Ohio’s market. A typical home solar system might generate 10-15 SRECs per year, providing an ongoing income stream that helps offset your solar investment costs. You can sell your SRECs through online marketplaces or aggregators who handle the transactions for you.
To participate, you need a solar system that’s connected to the grid and registered with Ohio’s renewable energy tracking system. Your system must be located in Ohio and meet basic technical requirements. There’s no specific deadline to join the program, but you can only earn SRECs for electricity generated after your system is properly registered and operational.
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 electricity than your home uses during the day, that extra power flows to the grid and you receive a credit on your electric bill. At night or during cloudy days when your panels aren’t producing enough power, you can use these credits to offset the electricity you draw from the grid.
The financial benefit varies by utility company, but all major Ohio utilities offer monthly net metering with 1:1 credit for excess solar production. This means you receive full retail rate credit for every kilowatt-hour you send to the grid during the month. However, any excess credits beyond your monthly consumption are carried forward to the next month at a lower generation rate, typically ranging from 5-12 cents per kWh depending on your utility company. AES Ohio customers should note that generation rates can fluctuate significantly – they reached 10.8 cents/kWh from June 2022 to May 2024 but are expected to return to the typical 5-7 cents range.
Net metering is available to residential solar customers across Ohio’s major utility territories, including AEP Ohio, Duke Energy, FirstEnergy companies (OhioEdison, Cleveland Electric, Toledo Edison), and AES Ohio. There are no specific deadlines for enrollment, as this is an ongoing program. Homeowners should understand that while net metering provides valuable bill savings, the monthly settlement structure means you won’t build up large credit balances over time – excess credits are settled monthly rather than annually at the lower generation rate.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Ohio incentives.
Get a Free QuoteCincinnati Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Cincinnati’s variable weather and seasonal sunlight changes affect solar production throughout the year. Despite cloudy winters, proper system design maximizes energy generation year-round.
Solar Production in Cincinnati by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Cincinnati
We’ve mapped every solar installation across America to show you the clean energy revolution happening in Cincinnati neighborhoods. Explore this interactive map to discover how many of your neighbors have already made the switch to solar power!
Leasing Solar Panels
Cincinnati homeowners have access to Power Purchase Agreements (PPAs) through all major utility providers, including Duke Energy, AEP Ohio, and FirstEnergy companies. With a PPA, you pay a fixed rate per kilowatt-hour for the solar energy your system produces, typically lower than current utility rates.
This option eliminates upfront costs, system maintenance responsibilities, and performance risks while providing immediate savings on your electricity bills. Unlike purchasing a system outright, PPAs include professional monitoring, maintenance, and repairs at no additional cost.
For more details about solar financing options, visit our solar lease comparison guide or explore our LightReach program designed specifically for hassle-free solar adoption.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Cincinnati. With Ohio electricity rates increasing 26% since 2021 and Cincinnati homeowners saving an average of $60,370 over 25 years, solar provides strong financial returns.
Cincinnati’s solar conditions support year-round energy production, while Ohio’s property tax exemptions and net metering programs enhance the investment value for local homeowners.
Yes, Cincinnati has net metering through all major utility providers. Duke Energy, AEP Ohio, and FirstEnergy companies offer monthly net metering with 1:1 credit for excess solar production during your billing cycle.
Any surplus energy beyond monthly consumption carries forward at the generation rate (5-12¢/kWh depending on your utility), providing ongoing value for Cincinnati solar installations while reducing electricity bills year-round.
Yes, solar panels increase home value in Cincinnati, OH. Research from Zillow shows solar panels increase home value by 4.1% on average nationwide, which translates to approximately $8,200 for Cincinnati’s median home price of $200,000.
Additionally, Ohio’s property tax exemption means you won’t pay extra taxes on the added value from your solar installation, maximizing your investment return when you sell your home.
Solar installation costs in Cincinnati range from $11,975 to $21,043 after federal tax credits, depending on your home size and energy needs. A typical 8 kW system costs $16,365 after the 30% federal tax credit.
System size varies based on your electricity usage and roof space. Small homes (up to 2,000 sq ft) typically need 5.74 kW systems, while larger homes (over 3,000 sq ft) may require 10.8 kW systems for complete energy offset.
Yes, solar is financially worth it in Cincinnati. With rising electricity costs and Ohio’s favorable incentives, homeowners save an average of $60,370 over 25 years with payback periods around 8.7 years.
Cincinnati’s stable utility rates through Duke Energy, combined with federal tax credits and property tax exemptions, create strong financial returns that protect against future energy cost increases.
We believe Palmetto Solar offers the best solar installation experience in Cincinnati. We’ve completed over 1,335 installations across Ohio since 2020, bringing proven expertise to local homeowners.
Our comprehensive approach includes some of the industry’s best financing options, a trusted installation network, and ongoing support throughout your solar journey. We focus on making solar accessible and straightforward for Cincinnati families.