Dayton, 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 systems installed between August 14, 1979, and December 31, 1985, that meet the guidelines established under Ohio law qualify for the exemption. Additionally, any solar energy facility with a nameplate capacity of 250 kilowatts or less completed on or after January 1, 2010, is exempt from taxation. Most residential solar systems fall well under this capacity limit, typically ranging from 5-15 kilowatts. The exemption applies automatically and continues for the life of the system with no renewal requirements, making it a valuable long-term financial benefit for Ohio homeowners considering solar energy.

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 hundred dollars in additional income annually. 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 the renewable energy market evolves. Homeowners should work with a reputable solar installer who can help set up SREC registration and potentially connect with SREC aggregators who can simplify the selling process.

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 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 each kilowatt-hour (kWh) you export is credited at the same rate as what you pay for electricity consumption.

When your solar system produces more electricity than you use in a 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 through all major Ohio utilities including AEP Ohio, Ohio Edison, Illuminating Company, Duke Energy, AES Ohio, and Toledo Edison.

There are no specific eligibility requirements mentioned beyond having a grid-connected solar system with your utility. The program operates on a monthly settlement cycle, meaning your excess generation credits reset monthly rather than annually. This makes system sizing particularly important – a system that’s too large might generate credits that don’t provide full value.

For AES Ohio customers specifically, be aware that generation rates can fluctuate significantly. Between June 2022 and May 2024, rates increased to 10.8 cents/kWh, but they typically hover between 5-7 cents/kWh. Checking your utility’s current generation rate before going solar will help you better understand the value of your excess production credits.