Cleveland, OH Solar Panels
Solar Power in Cleveland
If you’re a Cleveland homeowner researching solar panel installation, you’re asking the right questions. Ohio electricity prices have risen 31% from 2020 to 2024 — and many Cleveland residents served by FirstEnergy are looking for ways to reduce their dependence on the grid.
Solar panels offer a practical, long-term path to more predictable energy costs. Whether you’re just starting out or ready to go deeper, our guide to home solar panels is a great place to start.
How Much Do Solar Panels Cost in Cleveland, OH?
Our calculator uses real installation data from Cleveland and surrounding communities — Lakewood, Parma, Strongsville, and beyond — to give you an accurate, local estimate of what solar could cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Ohio electricity prices have risen 31% since 2020, making solar a smart way for Cleveland homeowners to reduce long-term energy costs.
- A typical Cleveland home can save around $61,000 over 25 years with solar — and leasing options start as low as $99/month with no upfront cost.
- Cleveland gets enough sunlight to make solar worthwhile year-round, and Ohio incentives like the ECO-Link program can help reduce your financing costs.
Cleveland Electricity Prices
Cleveland electricity rates have climbed steadily — and understanding what you’re paying is the first step toward smarter energy decisions.
Ohio electricity rates rose approximately 26% from 2021 to 2024, reaching 16.1¢/kWh. That growth has outpaced many household budgets — and while Ohio rates remain slightly below the national average of 16.5¢/kWh, the gap is narrowing fast.
Solar panels give Cleveland homeowners a way to generate their own power, reducing how much electricity they need to buy from FirstEnergy. That means fewer rate increases directly impacting your monthly bill. Our guide to home solar panels is a helpful starting point.
A solar system installed today can produce power for 25 years or more. As grid electricity costs continue rising, the value of generating your own energy at home only grows — providing Cleveland homeowners with greater long-term cost stability.
Price of Energy: Ohio vs National Average
Cleveland Area Utility Providers
Cleveland homeowners are primarily served by two utilities — Cleveland Electric Illuminating Company and Ohio Edison. Based on 2023 data, both charge below the state average of 15.40¢/kWh and the national average of 16.0¢/kWh.
Cleveland Electric Illuminating Company came in at 14.4¢/kWh and Ohio Edison at 14.6¢/kWh in 2023. These rates fall below Ohio’s state average, reflecting regional grid infrastructure and energy mix factors specific to Northeast Ohio.
Even at below-average rates, electricity costs add up over time. Solar can help Cleveland homeowners lock in more predictable energy costs and reduce long-term exposure to utility rate fluctuations — regardless of where rates currently stand.
Cleveland Utilities Electricity Rates
Ohio Solar Incentives
Cleveland homeowners have access to several solar incentives in Ohio that can help reduce the upfront and long-term costs of going solar.
State programs like Ohio’s ECO-Link offer reduced-interest financing, while Cleveland’s property tax abatement can exempt up to 100% of added home value from solar upgrades. Some local incentives — like those in Cincinnati and Hamilton County — apply only to specific areas.
Note that the federal 30% residential solar tax credit was eliminated by the Big Beautiful Bill. Homeowners who lease through Palmetto’s LightReach program benefit from Palmetto managing the commercial tax credit, with savings passed through via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| ECO-Link Program (Energy Conservation for Ohioans) | Rebate | The Ohio Treasurer’s ECO-Link program offers homeowners a 3% interest rate reduction on loans up to $50,000 through participating banks for solar panel installation and other renewable energy upgrades. | Learn More |
| Federal Battery Storage Tax Credit (Section 25D) | Tax Credit | Homeowners who install a standalone or solar-paired battery storage system of 3 kWh or larger may qualify for a 30% federal tax credit under IRS Section 25D — confirm current eligibility for 2026 installations with a tax professional. | Learn More |
| Cleveland Property Tax Abatement for Solar | Property Tax Exemption | Cleveland homeowners who invest in solar installations may qualify for a residential property tax abatement that exempts up to 100% of the increased property value attributable to the solar upgrade. |
The Energy Conservation for Ohioans (ECO-Link) program, administered by the Ohio Treasurer of State, helps homeowners finance solar panel installations and other renewable energy upgrades at below-market interest rates. Through this linked deposit program, the Ohio Treasury subsidizes participating banks to offer borrowers a 3% reduction off the standard market interest rate on qualifying loans — making solar financing significantly more affordable.
Eligible homeowners in Cleveland 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, both with the 3% rate reduction. To apply, you must work through a participating bank enrolled in Ohio’s Linked Deposit Program. A list of qualified participating banks is available through the Ohio Treasurer’s office website.
This program is open to Ohio homeowners looking to install solar panels, solar battery storage, or make other qualifying renewable energy improvements. There is no direct rebate or grant — the benefit comes in the form of reduced loan interest, which can save hundreds to thousands of dollars over the life of the loan depending on the amount borrowed. Contact the Ohio Treasurer’s office or visit their website to find a participating lender near you.
The federal Residential Clean Energy Credit under IRS Section 25D provides a 30% tax credit on the cost of new battery storage systems with a capacity of 3 kWh or larger. This credit applies to both standalone battery systems and batteries installed alongside solar panels. The credit is claimed using IRS Form 5695 when you file your federal income taxes for the year the system is placed in service.
While the residential solar Investment Tax Credit (ITC) for new solar panel installations was eliminated at the end of 2025 under the “One Big Beautiful Bill,” the status of the battery storage credit under Section 25D for 2026 and beyond should be confirmed with a qualified tax professional, as legislative changes may affect eligibility. If eligible, a 30% credit on a $10,000 battery system would represent $3,000 in direct tax savings.
To claim this credit, the battery system must be installed at your primary or secondary U.S. residence, and the credit is non-refundable — meaning it can reduce your federal tax liability to zero but will not result in a refund for any excess amount. Unused credit may be carried forward to future tax years. Consult a licensed tax advisor or CPA to confirm your eligibility and the current status of this credit for 2026 installations.
The City of Cleveland offers a residential property tax abatement program for homeowners who invest in building upgrades, including solar panel installations. Under this program, up to 100% of the increased assessed value of your property resulting from the solar installation can be exempted from property taxes for the duration of the abatement period.
This incentive is particularly valuable in Cleveland, where property tax rates can be significant. By shielding the added home value from taxation, homeowners can enjoy the financial and energy benefits of solar without the burden of a higher annual tax bill. The abatement complements the statewide property tax exemption for solar systems under 250 kW.
Eligibility requirements, application procedures, and abatement durations are set by the City of Cleveland. Homeowners interested in this program should contact the City of Cleveland’s Department of Building and Housing or the Cuyahoga County Fiscal Officer’s office to confirm current program terms, application deadlines, and any qualifying criteria before installation.
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 QuoteCleveland 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.
Cleveland’s cloudy reputation doesn’t tell the whole story. Like Boston or Seattle, smart solar systems are designed for real local weather—and Cleveland gets enough sunlight to make solar worthwhile year-round.
Solar Production in Cleveland 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 Panel Systems in Cleveland
We’ve mapped thousands of solar installations across the U.S. — and Cleveland is part of the story. Explore this interactive heatmap to see which neighborhoods in your community have already made the switch to solar. Click any hexagon to see how many homes are powered by the sun!
Leasing Solar Panels
In Ohio, Palmetto offers a Power Purchase Agreement (PPA) through major utility providers serving Cleveland — including the Illuminating Company (Cleveland Electric/FirstEnergy) and Ohio Edison. A PPA is a straightforward alternative to paying the full cost of a solar system upfront. Instead of owning the panels yourself, Palmetto installs and maintains the system on your home, and you simply pay for the solar energy it produces at a set rate per kilowatt-hour (kWh).
Because solar panels produce more electricity in summer than in winter, your monthly PPA bill will naturally fluctuate with the seasons — higher during sunny months when your system is working hardest, and lower in winter. Over the course of a year, those payments average out similarly to what a fixed monthly lease would cost. Either way, you’re paying for clean energy you’re actually using — not a loan on equipment you have to manage. And since Palmetto owns the system, all maintenance and monitoring are handled for you. Learn more about how buying compares to leasing solar.
For Cleveland homeowners who don’t want to tie up tens of thousands of dollars in a cash purchase — or take on the responsibility of long-term system upkeep — a PPA through Palmetto’s LightReach program offers a practical path to solar savings. There’s no large upfront investment, no maintenance burden, and your savings begin as soon as your panels are active. As Cleveland electricity rates continue to rise, locking in a predictable per-kWh solar rate can provide meaningful long-term value.
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 sense for many Cleveland homeowners. Ohio electricity rates have risen 31% since 2020, and a typical Cleveland home can save around $61,000 over 25 years with solar. Cleveland receives an average of 4.4 peak sun hours per day — enough to make solar productive year-round, even with Northeast Ohio’s cloudy winters.
For homeowners concerned about upfront costs, Palmetto’s LightReach solar lease removes that barrier entirely — you can go solar with no money down and start saving from day one, with payments starting as low as $99/month.
Yes, Cleveland homeowners have access to net metering through their local utility providers. Both Cleveland Electric Illuminating Company (FirstEnergy) and Ohio Edison offer monthly net metering. Each month, any solar energy you export to the grid is credited on a 1:1 basis against your total electricity consumption.
If your solar panels produce more than you consume in a given month, the excess is carried forward to the next billing cycle — credited at the generation rate (approximately 5–12¢/kWh) rather than the full retail rate. This makes net metering a valuable benefit for Cleveland solar homeowners looking to reduce their monthly electricity bills.
Yes, solar panels can increase your home’s value in Cleveland. According to a Zillow study, homes with solar panels sell for an average of 4.1% more than comparable homes without them. For a $250,000 home in the Cleveland area, that could mean over $10,000 in added value.
Cleveland homeowners also benefit from a local property tax abatement that can exempt up to 100% of the increased assessed value from solar upgrades — meaning you gain home equity without a higher tax bill.
The most accessible way for Cleveland homeowners to go solar is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting as low as $99/month for a medium-sized home. Palmetto owns and maintains the system, so there’s nothing to manage.
For those considering a cash purchase, a typical 8.19 kW system in Cleveland runs around $23,379. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For many Cleveland homeowners, solar can be worth it financially — especially with a lease option. With Palmetto’s LightReach program, there’s no upfront investment. Your monthly lease payment is typically less than your current electricity bill, so savings begin on day one.
With Ohio electricity rates up 31% since 2020, locking in a predictable solar payment offers real long-term value. A typical Cleveland home can save around $61,000 over 25 years with solar.
Palmetto Solar is a top choice for Cleveland homeowners. As a national company with a local focus, we’ve completed 1,335 installs across Ohio since 2020 — backed by a trusted network of local installers and some of the best financing options in the industry.
We offer flexible options including our LightReach lease starting at just $99/month with no upfront cost, as well as cash purchase options. Our team handles everything from design to installation, so Cleveland homeowners can go solar with confidence.
Palmetto’s LightReach is an all-inclusive solar lease — one monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 8.19 kW system in Cleveland, the estimated monthly payment is approximately $99/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage over cash purchases, where the residential ITC was eliminated. Most Cleveland homeowners find the lease payment is less than their current electricity bill, so savings start immediately.