Cleveland, OH Solar Panels
Solar Power in Cleveland
Cleveland homeowners have seen Ohio electricity prices climb 31% from 2020 to 2024 — making solar panel installation an increasingly practical option worth understanding. Whether you’re just starting your research or ready to take the next step, this guide is built for Northeast Ohio residents.
Here you’ll find a straightforward breakdown of how solar panels for your home work, what solar installation in Cleveland actually involves, and what local homeowners should know before making a decision.
How Much Do Solar Panels Cost in Cleveland, OH?
Using real installation data from Cleveland and surrounding areas — including Parma, Lakewood, Strongsville, and Westlake — this calculator gives you an honest, local estimate of what solar panels might 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 26% since 2021 — making solar a practical way for Cleveland homeowners to take control of their monthly energy costs.
- Cleveland homeowners can save an average of $61,000 over 25 years with solar, with options to lease starting at just $99/month — no upfront cost required.
- Ohio offers a property tax exemption for solar, meaning your home’s value can increase without raising your property tax bill.
Cleveland Electricity Prices
Ohio electricity prices have risen roughly 26% since 2021 — making it one of the fastest-growing household expenses for Cleveland homeowners.
From 2021 to 2024, Ohio’s average electricity rate climbed from 12.8 to 16.1 cents per kWh. That steady increase means the average Cleveland household is spending noticeably more each year just to keep the lights on.
Solar panels can help Northeast Ohio homeowners reduce their dependence on the grid. By generating your own electricity, you’re less exposed to rising utility rates — and more in control of what you pay each month.
Over time, that stability adds up. Many Cleveland homeowners find that solar helps flatten their energy costs for years — turning an unpredictable monthly bill into something far more consistent and manageable over the long run.
Price of Energy: Ohio vs National Average
Cleveland Area Utility Providers
In Cleveland, the primary electricity provider is The Illuminating Company. Based on the most recent available data (2023), their residential rate was 14.4¢ per kWh — below both Ohio’s state average of 15.4¢ and the national average of 16.0¢ per kWh.
The Illuminating Company’s below-average rate reflects Ohio’s historically regulated utility environment and regional grid infrastructure. While Cleveland residents currently pay less than most U.S. households, electricity rates across the country have trended upward in recent years, and local rates can shift as grid and fuel costs change.
Even when utility rates are relatively low, solar panels in Cleveland can offer long-term value by locking in predictable energy costs. Homeowners who generate their own power are less exposed to future rate increases, giving them greater control over their monthly energy bills over time.
Cleveland Utilities Electricity Rates
Ohio Solar Incentives
Cleveland homeowners can access several solar incentives in Ohio — including a local property tax abatement that may exempt up to 100% of your home’s added value from solar.
State and local programs like Ohio’s property tax exemption for solar systems and the Solar for All – Ohio grant program help reduce the financial barrier for Cleveland-area homeowners exploring solar installation.
Recent federal legislation eliminated the residential solar tax credit. However, state and local incentives remain. Palmetto’s LightReach leasing option handles the commercial tax credit, passing savings through as lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Ohio Property Tax Exemption for Solar (≤250 kW) | Property Tax Exemption | Ohio exempts residential and small commercial solar energy systems of 250 kW or less from real property taxes and public utility tangible personal property taxes, so your home’s assessed value does not increase due to your solar installation. | Learn More |
| Cleveland Property Tax Abatement for Solar | Property Tax Exemption | Cleveland offers a property tax abatement for solar installations that can exempt up to 100% of the increased property value resulting from a solar energy system, helping homeowners avoid higher property tax bills. | Learn More |
| Ohio PACE Financing (Property-Assessed Clean Energy) | Rebate | Ohio’s PACE program connects commercial, industrial, nonprofit, and multi-family property owners with fixed-rate financing covering 100% of upfront solar installation costs, repaid through property assessments over 15 to 25 years. | |
| Solar for All – Ohio (EPA / Ohio Air Quality Development Authority) | Rebate | A $156 million federal program administered by the Ohio Air Quality Development Authority provides grants and low-cost financing for solar installations serving low- and moderate-income households across Ohio. | Learn More |
| Federal Battery Storage Tax Credit (Residential Clean Energy Credit – Section 25D) | Tax Credit | A 30% federal tax credit is available for qualifying home battery storage systems with a capacity of at least 3 kWh installed by December 31, 2025; eligibility for 2026 installations is uncertain and should be confirmed with a tax professional. | Learn More |
Under Ohio Revised Code Section 5727.76, solar energy systems with an aggregate nameplate capacity of 250 kW or less are fully exempt from real property taxation and public utility tangible personal property taxes, provided the system was constructed or installed on or after January 1, 2010. This means that even though adding solar panels typically increases your home’s market value, that added value will not raise your property tax bill.
The exemption is administered by the Ohio Development Services Agency in coordination with local county commissioners and county auditors. Because implementation can vary by county, it is important for residents of Cleveland to contact the Cuyahoga County auditor’s office directly to confirm how the exemption is applied in your area and to ensure your system is properly registered for the benefit.
This incentive is available statewide and applies automatically to qualifying systems, but proactive communication with your county auditor is recommended to avoid any inadvertent tax increases on your property assessment after installation.
The City of Cleveland offers a property tax abatement program for residential solar installations that can exempt up to 100% of the increased assessed value of your home attributable to the solar energy system. This means that even as your home’s market value rises due to the addition of solar panels, your property tax bill will not increase as a result of that added value during the abatement period.
This local abatement complements Ohio’s statewide property tax exemption for solar systems of 250 kW or less, and together they provide Cleveland homeowners with strong protection against property tax increases following a solar installation. The combined effect can represent meaningful long-term savings over the life of your solar system.
For specific eligibility requirements, application procedures, and program details, contact the City of Cleveland directly at clevelandohio.gov. It is recommended to initiate the abatement application process in coordination with your solar installation to avoid any gap in coverage.
Ohio’s Property-Assessed Clean Energy (PACE) program is a financing mechanism that allows commercial, retail, industrial, nonprofit, and multi-family property owners to cover 100% of the upfront costs of solar energy installations with no out-of-pocket expense at the time of installation. The program is administered in collaboration with local governments, which connect property owners with approved capital providers and contractors.
PACE loans feature fixed interest rates and repayment terms of 15 to 25 years. Repayment is structured as a special assessment on the property, meaning payments are made alongside property tax bills. Because the financing is tied to the property rather than the borrower, it can be an attractive option for property owners who may not qualify for traditional financing or who prefer to preserve their credit lines.
Note that Ohio’s PACE program is primarily designed for commercial and non-residential properties. Residential homeowners in Cleveland should explore the ECO-Link program as an alternative financing option. For more information on Ohio PACE, contact your local government or visit the Ohio Facilities Construction Commission website.
The Solar for All program is a federal initiative funded under the Inflation Reduction Act (IRA) and administered nationally by the U.S. Environmental Protection Agency (EPA). In Ohio, the program is being implemented by the Ohio Air Quality Development Authority (OAQDA) and the Ohio Environmental Protection Agency, which received a $156 million grant to expand solar access for low- and moderate-income (LMI) households and underserved communities throughout the state.
The program is designed to provide grants and low-cost financing opportunities that make rooftop and community solar installations financially viable for households that might otherwise be unable to afford them. Cuyahoga County is among the communities participating through the Industrial Heartland Solar Coalition, and the program is expected to reach several dozen communities across Ohio.
As of 2026, the program is still being developed and specific application processes are being finalized. Eligible low- and moderate-income homeowners in Cleveland should monitor the Ohio Air Quality Development Authority’s website at oaqda.ohio.gov and the EPA’s Solar for All page for updates on when and how to apply. Priority will be given to households in designated low-income and disadvantaged communities.
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 at least 3 kWh. This credit applies to both standalone battery systems and batteries installed alongside solar panels. For systems installed and placed in service by December 31, 2025, the 30% credit is clearly available and is claimed by filing IRS Form 5695 with your federal tax return.
For battery storage systems installed in 2026 or later, the status of this credit is uncertain following recent legislative changes (the “One Big Beautiful Bill”). The residential solar ITC has been eliminated, and the future of the battery storage credit for new 2026 installations should be confirmed with a qualified tax professional before you rely on it in your financial planning. If you installed a qualifying battery system in 2025, you can still claim the credit when you file your 2025 taxes in 2026.
To claim the credit for an eligible installation, complete IRS Form 5695 (Residential Energy Credits) and attach it to your federal tax return. The credit is non-refundable, meaning it can reduce your federal tax liability to zero but will not result in a refund. Any unused credit may be carried forward to future tax years. Consult a tax advisor for guidance specific to your situation and for the latest legislative updates.
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-world weather — and Cleveland gets enough sunlight to make solar worthwhile.
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 mapped every solar installation across the U.S. — and Cleveland is part of the story. Explore this interactive heatmap to see which neighborhoods in your city have already made the switch to solar. Click any hexagon to see how many homes in that area are going solar!
Leasing Solar Panels
In Cleveland, Ohio, Palmetto offers a Power Purchase Agreement (PPA) through major local utility providers, including The Illuminating Company (Cleveland Electric/FirstEnergy). With a PPA, you pay only for the electricity your solar panels actually produce — at a set rate per kilowatt-hour — rather than a fixed monthly amount. Because solar panels generate more power in summer, your PPA bill will be higher in sunny months and lower in winter, but your annual savings balance out similarly to a lease.
Compared to purchasing a system outright with cash, a PPA removes the large upfront investment and eliminates the responsibility of maintenance. When you buy solar panels outright, you own the system — which means repairs, monitoring, and long-term upkeep fall on you. With Palmetto’s LightReach PPA, Palmetto owns and maintains the system, so you benefit from clean energy without the hassle. There’s no need to worry about equipment issues or service calls — that’s all handled for you.
A PPA can also make solar more accessible for Cleveland homeowners who prefer predictable, lower monthly energy costs over a large capital outlay. You start saving from day one, with no money down. To learn more about how a PPA compares to other financing options, visit our solar buy or lease guide.
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!
Explore LightReach LeasingFrequently Asked Questions
Yes, solar makes sense for many Cleveland homeowners. Despite Northeast Ohio’s cloudy reputation, Cleveland averages 4.4 peak sun hours per day — enough to generate meaningful savings. With Ohio electricity prices rising 26% since 2021, solar helps stabilize your monthly energy costs. A typical Cleveland home can save an estimated $61,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach lease removes that barrier entirely — homeowners can go solar with no money down and start saving from day one.
Yes, Cleveland homeowners have access to net metering through their utility provider. The primary local utility, The Illuminating Company (Cleveland Electric/FirstEnergy), offers monthly net metering: your solar production is netted against your total monthly consumption on a 1:1 basis.
Any excess solar energy you export beyond your monthly usage is credited at the generation rate (approximately 5–12¢/kWh) and carried forward to your next billing cycle — rather than at the full retail rate.
Yes, solar panels can increase your home’s value in Cleveland. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. On a $250,000 Cleveland home, that could mean over $10,000 in added value.
Even better, Ohio’s property tax exemption for solar — along with Cleveland’s local property tax abatement — means your property taxes won’t increase due to that added value. You get the financial upside without the tax burden.
With Palmetto’s LightReach lease, Cleveland homeowners can go solar for as little as $69–$130/month — with no upfront cost. Palmetto owns and maintains the system, and savings start on day one.
For homeowners who prefer to purchase outright, a typical Cleveland system costs $17,000–$30,000 depending on home size. 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 lease, there’s no upfront cost, and your monthly lease payment is typically less than your current electricity bill, meaning you start saving from day one.
Ohio electricity rates have risen 26% since 2021, making energy costs increasingly unpredictable. Leasing solar locks in a predictable monthly payment, helping Cleveland homeowners reduce exposure to future rate increases without any upfront investment.
Palmetto is a strong choice for Cleveland homeowners exploring solar. As a national company with deep local roots, we’ve completed 1,335 installations across Ohio since 2020 — and we bring that experience directly to Northeast Ohio neighborhoods.
We offer some of the most flexible financing options in the industry, including our LightReach lease with no upfront cost, starting at just $69/month. Our trusted installer network handles everything from permitting to installation, so Cleveland homeowners can go solar with confidence.
With Palmetto’s LightReach all-inclusive solar lease, Cleveland homeowners pay one simple monthly payment — covering 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. Most homeowners start saving from day one, since the lease payment is typically less than their current electricity bill.