Cleveland, OH

Ohio offers a Property Tax Exemption for solar energy systems that provides significant financial benefits to homeowners. This state tax incentive completely exempts qualifying solar installations from property tax assessments, meaning the added value that solar brings to your home won’t increase your property taxes. This can result in hundreds or even thousands of dollars in tax savings over the life of your system, depending on your local property tax rates and the value of your solar installation.

To qualify for this exemption, your solar energy system must have been installed between August 14, 1979, and December 31, 1985, or be part of an energy facility with a nameplate capacity of 250 kilowatts or less installed after January 1, 2010. Most residential solar installations easily meet this capacity requirement. The exemption applies automatically to qualifying systems, but you may need to notify your local tax assessor about your solar installation. There is no expiration date for systems installed after January 1, 2010, making this a permanent benefit for Ohio homeowners who go solar.

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. 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 specific 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 solar energy your system exports. Each month, these amounts are compared (or “netted”) on a one-to-one basis, meaning you receive full retail credit for the solar energy you produce up to your total monthly consumption.

When your solar system produces more electricity than you use in a given month, the excess is carried forward to your next monthly bill as a credit at the generation rate. This rate varies by utility company, typically ranging from 5-12 cents per kilowatt-hour. For example, AEP Ohio customers receive approximately 6-11 cents/kWh, while Duke Energy offers around 5-10 cents/kWh. This monthly settlement approach applies to all major Ohio utilities including AEP Ohio, Ohio Edison, Illuminating Company, Duke Energy, AES Ohio, and Toledo Edison.

There are no specific deadlines for enrolling in net metering, but it’s important to note that credits are settled monthly rather than annually. This means excess production credits don’t accumulate indefinitely – they’re applied at the generation rate each month. When planning your solar system, sizing it appropriately to match your typical consumption patterns will help maximize your financial benefits under Ohio’s net metering structure.