Columbus, OH Solar Panels

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 means that even though your solar panels or other renewable energy system adds value to your home, you won’t see an increase in your annual property tax bill because of that added value.

The financial benefit varies based on your local property tax rate and the value of your energy system, but it can save you hundreds of dollars annually. For example, if your solar system adds $20,000 in value to your home and your local property tax rate is 1.5%, you would save $300 per year in property taxes. To qualify, your energy facility must have a nameplate capacity of 250 kilowatts or less, and construction or installation must be completed on or after January 1, 2010. There are no application deadlines since the exemption applies automatically once your system is installed and meets the requirements.

This exemption continues for the life of your renewable energy system, making it a long-term financial benefit that reduces your ongoing homeownership costs while you enjoy clean energy savings.

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 additional $100-750 in annual income beyond your electricity bill savings. You can sell your SRECs through online marketplaces or aggregators who handle the transactions for you.

To participate, you need a solar system connected to the grid with proper metering equipment to track your energy production. Your system must be certified and registered with Ohio’s renewable energy tracking system. There’s no specific deadline to join, but SRECs are earned continuously as long as your system produces solar energy and Ohio maintains its renewable energy standards.

Net metering in Ohio allows homeowners with solar panels to receive credit for the excess electricity their system produces and sends back to the electric grid. When your solar panels generate more power than your home uses during the day, that extra energy 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 the solar energy you export to the grid during the same billing cycle. However, any excess credits that remain at the end of each month are carried forward at a lower generation rate, typically ranging from 5-12 cents per kWh depending on your utility company. For example, AEP Ohio customers receive 6-11 cents per kWh for excess credits, while Duke Energy Ohio customers receive 5-10 cents per kWh.

Net metering is available to customers of all major Ohio utilities including AEP Ohio, Duke Energy Ohio, FirstEnergy companies (Ohio Edison, Cleveland Electric Illuminating, Toledo Edison), and AES Ohio. There are no specific deadlines for this program, as it’s an ongoing utility policy. However, homeowners should be aware that generation rates can fluctuate – AES Ohio customers saw rates temporarily increase to 10.8 cents per kWh from June 2022 to May 2024, though rates are expected to return to the typical 5-7 cent range.