Solar Guide

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 when you install qualifying renewable energy systems, the added value to your home from these systems won’t increase your annual property tax bill.

The financial benefit varies based on your local property tax rate and the value of your energy system, but it can save homeowners hundreds to thousands of dollars annually. For systems installed after January 1, 2010, any renewable energy facility with a capacity of 250 kilowatts or less qualifies for this exemption. There are no application deadlines, but you must complete construction or installation to be eligible. Keep in mind that while your energy system won’t be taxed, it may still add value to your home for resale purposes, giving you the best of both worlds – increased home value without the ongoing tax burden.

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 should register your system soon after installation to start earning credits. Keep in mind that SREC prices fluctuate with market conditions, so the income isn’t guaranteed to stay at any particular level.

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 those 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. Any excess credits beyond your monthly consumption are carried forward to the next billing cycle, but these surplus credits are typically valued at the lower generation rate, which ranges from about 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 of all major Ohio utilities including AEP Ohio, Duke Energy, FirstEnergy companies (OhioEdison, Cleveland Electric), AES Ohio, and Toledo Edison. Each utility handles the monthly settlement process, so homeowners don’t need to take any special action beyond installing an eligible solar system and connecting to the grid through their utility’s interconnection process.