Cincinnati, OH
Solar in Cincinnati
Looking to harness solar power in Cincinnati? With Ohio electricity prices soaring 31% since 2020, more Queen City homeowners are discovering how home solar panels can provide long-term energy savings.
Cincinnati’s abundant sunshine creates excellent conditions for solar installation, despite Ohio currently ranking 24th nationally for residential solar adoption. Let’s explore how solar energy can benefit your Cincinnati home while reducing both utility bills and environmental impact.
Key Takeaways
- Cincinnati offers excellent solar potential with 1,300+ peak sunlight hours annually, allowing homeowners to offset rising electricity costs that have increased 26% since 2021.
- Solar panels in Cincinnati can save homeowners $60,370 over 25 years with a typical payback period of 8.7 years for medium-sized homes.
- Ohio’s solar incentives include a 30% federal tax credit and property tax exemptions, making now an ideal time to invest in clean energy for your home.
Solar Cost Calculator
Discover the true cost of solar panels in Cincinnati with our local calculator. Using real installation data from neighborhoods like Hyde Park, Blue Ash, and Anderson Township, we provide accurate estimates tailored to your Cincinnati home—no guesswork, just facts from Ohio’s solar experts.
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Estimated Investment and Savings
Based on Palmetto Solar installations in Ohio. Current electricity rate: 16.1¢/kWh. Assumes 100% credit of retail rate.
Cincinnati Electricity Prices
Cincinnati homeowners face rising electricity costs, with rates jumping 26% since 2021 – making solar installation an increasingly attractive option for long-term energy independence.
As shown in the chart, Cincinnati electricity rates have climbed steadily from 12.8 cents per kWh in 2021 to 16.1 cents in 2024, though remaining slightly below the national average.
Solar panels allow Cincinnati residents to generate their own clean electricity, reducing reliance on utility companies and providing protection against these continuing rate increases across Hyde Park, Oakley, and beyond.
With a typical solar system lifespan of 25+ years, Cincinnati homeowners can lock in energy costs now while taking advantage of available federal tax credits and Ohio’s net metering program.
Price of Energy: Ohio vs National Average
Cincinnati Area Utility Providers
In Cincinnati, two major utilities serve residents: Duke Energy at 14.7¢/kWh and AES Ohio at 16.4¢/kWh (2023 rates). These prices compare to Ohio’s state average of 15.4¢/kWh and the national average of 16.0¢/kWh.
Duke Energy offers Cincinnati residents slightly lower rates than both state and national averages, while AES Ohio’s rates exceed both benchmarks. These variations reflect differences in infrastructure investments, generation sources, and regional operating costs.
With utility rates fluctuating annually, Cincinnati homeowners can gain predictable energy costs through solar installation. Solar provides a hedge against future rate increases while potentially reducing monthly electricity expenses over the system’s 25+ year lifespan.
Cincinnati Utilities Electricity Rates
Ohio Solar Incentives
Cincinnati homeowners can significantly reduce solar installation costs through solar incentives in Ohio including property tax exemptions, SRECs, and beneficial net metering policies.
These incentives make solar more affordable in the Queen City. Property tax exemptions save $300-500 annually on a typical system, while net metering allows you to offset electricity costs at retail rates.
Remember that incentive programs can change. Research current offerings thoroughly and consider acting soon to maximize your savings on a Cincinnati solar installation.
Save an average of
$7,014
in solar rebates in Ohio
| 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 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 improved value of your home with solar panels.
The exemption applies to solar energy systems installed between August 14, 1979, and December 31, 1985, as well as energy facilities with a nameplate capacity of 250 kilowatts or less completed on or after January 1, 2010. Most residential solar installations fall well under this 250 kW capacity limit. To qualify, your system must meet the guidelines established under Ohio law. There is no expiration date for systems installed after January 1, 2010, making this a long-term financial benefit for homeowners who install solar today.
Solar Renewable Energy Certificates (SRECs) in Ohio offer homeowners with solar panels a valuable additional income stream. When your solar system generates electricity, you earn one SREC for every megawatt-hour (1,000 kilowatt-hours) 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 for Ohio homeowners. For a typical 7-10 kW residential solar system, this could generate 7-12 SRECs annually, potentially adding hundreds of dollars to your solar savings 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 this program, though market values may change over time as renewable energy goals evolve in the state.
Ohio’s Net Metering program allows solar homeowners to receive credit for the excess electricity their systems generate and send back to the grid. Under this program, your utility company tracks both the electricity you consume from the grid and the excess electricity your solar panels export to the grid each month.
When your monthly bill is calculated, your utility provider applies a 1:1 credit for the electricity you’ve exported against what you’ve consumed. This means for every kilowatt-hour (kWh) your solar system sends to the grid, you receive a full retail value credit on your electric bill. If you produce more electricity than you use in a given month, the excess credits are carried forward to your next monthly billing cycle at the generation rate, which typically ranges from 5-12 cents per kWh depending on your utility provider.
This program is available to customers of all major Ohio utilities including AEP Ohio, Ohio Edison, Illuminating Company, Duke Energy, AES Ohio, and Toledo Edison. There are no specific deadlines for enrollment, as this is an ongoing program available to qualifying solar system owners.
It’s important to note that the value of excess generation credits varies by utility company, and these rates can change over time. For example, AES Ohio (formerly Dayton Power & Light) saw rates increase significantly between June 2022 and May 2024, but these are expected to return to more typical levels. For the most accurate and current generation rates, check with your specific utility provider before making solar investment decisions.
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.
Despite Cincinnati’s varied weather, solar panels thrive here due to ample sunlight hours, especially in summer months. With proper installation, Cincinnati homes can harness significant clean energy 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
Discover Cincinnati’s solar revolution! We’ve meticulously mapped every solar installation across the city, creating this interactive heatmap. Explore neighborhoods like Hyde Park, Westwood, and Mount Lookout to see how your community is embracing clean energy. Click any hexagon to reveal local installation counts!
Leasing Solar Panels
In Cincinnati, Palmetto offers the Power Purchase Agreement (PPA) option for homeowners looking to go solar without the upfront costs. With a PPA, you pay only for the power your solar system generates at a set price per kilowatt-hour, which is typically lower than utility rates across all major Ohio providers including Duke Energy and AES Ohio.
Unlike purchasing solar panels outright, a PPA requires no initial investment and eliminates maintenance responsibilities. Palmetto handles all repairs, monitoring, and insurance, allowing you to enjoy clean energy with predictable pricing and no surprise expenses.
Through our LightReach program, Cincinnati residents can start generating solar power immediately while avoiding the complexities of ownership. This option is particularly beneficial for homeowners who want to reduce their carbon footprint while maintaining financial flexibility.
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 good sense in Cincinnati with over 1,300 annual peak sunlight hours and rising electricity costs. The average Cincinnati home can save $60,370 over 25 years with a typical payback period of 8.7 years.
With Ohio’s property tax exemption for solar installations and the 30% federal tax credit, Cincinnati homeowners can significantly reduce upfront costs while protecting against utility rate increases.
Yes, Cincinnati has monthly net metering. Major utilities like Duke Energy and AES Ohio provide 1:1 credit for solar electricity exported to the grid against your monthly consumption. Any excess generation is carried forward to the next billing cycle at the generation rate (typically 5-12¢/kWh).
This policy allows Cincinnati homeowners to maximize solar savings by receiving full retail value for electricity produced during daylight hours.
Yes, solar panels increase home value in Cincinnati. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
This translates to an average increase of $9,200 for a median-valued Cincinnati home. Additionally, Ohio’s property tax exemption means homeowners benefit from this increased value without higher property taxes.
In Cincinnati, solar installation costs range from $11,975 for small homes to $21,043 for larger properties after the 30% federal tax credit. The average medium-sized home (2,000-3,000 sq ft) costs approximately $16,365 for an 8.19 kW system.
These systems typically pay for themselves in 8.7 years and generate about $60,370 in savings over their 25-year lifespan, making solar a sound long-term investment for Cincinnati homeowners.
Yes, solar is financially worthwhile in Cincinnati. With electricity rates rising 26% since 2021, a typical system pays for itself in 8.7 years while generating $60,370 in savings over 25 years.
The 30% federal tax credit and Ohio’s property tax exemption reduce upfront costs, while net metering allows homeowners to offset utility bills at retail rates, providing protection against future rate increases.
As a national company with a strong local presence in Cincinnati, Palmetto Solar stands out with over 1,335 Ohio installations since 2020. We combine industry-leading financing options with an exceptional installation network.
Our transparent approach focuses on education rather than high-pressure sales tactics, helping Cincinnati homeowners make informed decisions about solar energy while maximizing their long-term savings.