Columbus, OH

Ohio offers a Property Tax Exemption for solar energy systems that provides significant financial benefits to homeowners. This state tax exemption means that when you install a qualifying solar system on your property, the value it adds to your home is exempt from property taxes. Without this exemption, your property taxes would increase based on the added value of your solar installation, which typically ranges from $10,000-$30,000 for residential systems.

There are two key eligibility paths for this exemption. First, solar energy systems installed between August 14, 1979, and December 31, 1985, that meet the guidelines established under Ohio law are exempt from property taxation. Second, and more relevant for current homeowners, any solar energy facility with a nameplate capacity of 250 kilowatts or less completed on or after January 1, 2010, qualifies for the exemption. This second provision covers virtually all residential solar installations, as most home systems are typically between 5-15 kilowatts. The exemption applies automatically and continues for the life of the system with no renewal requirements.

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 an average residential solar system (5-10 kW), this could generate several SRECs annually, providing additional income that helps offset your initial investment. There are no specific income requirements to participate, but you must own a grid-connected solar system in Ohio and register it with the state’s SREC tracking system. While Ohio’s SREC program doesn’t currently have an expiration date, certificate values may change over time as market conditions evolve, so it’s worth monitoring prices regularly to maximize your returns.

Ohio’s Net Metering program allows solar homeowners to receive credit for the excess electricity their systems produce and send back to the grid. Under this program, your utility company will track both the electricity you consume from the grid and the excess electricity your solar panels export to the grid each month.

When your monthly bill is calculated, your utility will first apply a 1:1 credit for your solar exports against your consumption. This means for every kilowatt-hour (kWh) your system sends to the grid, you’ll receive a full retail value credit against the electricity you use. If you produce more electricity than you consume in a given month, the excess credits are carried forward to your next monthly bill at the generation rate, which typically ranges from 5-12 cents per kWh depending on your utility provider.

This program is available to customers of all major Ohio utilities including AEP Ohio, Ohio Edison, Illuminating Company, Duke Energy, AES Ohio, and Toledo Edison. There are no specific deadlines to enroll, as this is an ongoing program available to solar system owners.

Important considerations: The value of excess generation credits varies by utility, and these rates can change over time. For example, AES Ohio’s generation rate increased significantly from June 2022 to May 2024 but is expected to decrease afterward. Since credits are settled monthly at the generation rate (rather than the full retail rate), sizing your system appropriately to match your consumption patterns will maximize your financial benefits.