Dayton, OH Solar Panels
Solar Power in Dayton
Considering solar panels for your Dayton home? You’re in the right place. With Ohio electricity prices jumping 31% from 2020 to 2024, more homeowners are exploring solar panels for home energy solutions.
This guide covers everything you need to know about solar installation in Dayton—from local incentives to system costs—so you can make an informed decision about clean energy for your home.
How Much Do Solar Panels Cost in Dayton, OH?
Our calculator uses real installation data from Dayton neighborhoods like Kettering, Beavercreek, Centerville, and Huber Heights to show you accurate solar costs. Get personalized estimates based on actual local projects, not national averages.
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Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Dayton receives 4.6 peak sun hours daily making solar panels a viable investment with typical systems producing 13,354 kWh annually.
- Ohio electricity rates jumped 25.8% since 2021 reaching 16.1¢/kWh in 2024, while solar locks in predictable energy costs.
- Medium-sized homes can save approximately $64,079 over 25 years with an 8.19 kW system and 11.2-year payback period.
Dayton Electricity Prices
Understanding your electricity costs is the first step in evaluating solar energy. Let’s look at how rates have changed in Ohio recently.
Ohio electricity rates have climbed from 12.8 cents per kWh in 2021 to 16.1 cents in 2024—a 25.8% increase in just three years. Dayton homeowners are feeling this impact on their monthly utility bills.
Solar panels generate electricity at a fixed cost, insulating homeowners from these rate increases. Once your system is installed, you’re producing power at a predictable price, regardless of utility rate fluctuations.
Over a typical 25-year system lifespan, this protection from rising rates adds up significantly. While utility customers face unpredictable increases, solar homeowners lock in long-term energy stability and potential savings.
Price of Energy: Ohio vs National Average
Dayton Area Utility Providers
Understanding your electricity costs is the first step in evaluating solar energy. According to 2023 data, Dayton homeowners are served primarily by two utilities: DP&L at 16.4¢ per kWh and Duke Energy at 14.7¢ per kWh.
DP&L’s rates sit slightly above the national average of 16.0¢, while Duke Energy falls below it. Both utilities’ pricing reflects Ohio’s energy mix, regional infrastructure costs, and regulatory factors affecting the state’s 15.4¢ average.
With electricity rates continuing their upward trend, solar panels offer Dayton homeowners a way to lock in predictable energy costs. By generating your own power, you reduce dependence on utility rate fluctuations over time.
Dayton Utilities Electricity Rates
Ohio Solar Incentives
Going solar in Dayton comes with financial benefits beyond energy savings. Ohio offers several solar incentives in Ohio to reduce upfront and ongoing costs.
Property tax exemptions protect you from increased taxes on your home’s added value. Net metering credits you retail rates for excess energy sent to the grid. Solar Renewable Energy Certificates provide modest additional income for system owners.
These programs change periodically, so research current details carefully. Acting sooner rather than later helps you lock in today’s benefits for your solar investment.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Property Tax Exemption | State tax exemption | No property tax on added home value from systems =250kW. Saves ~$300-500 annually on $15k system value at 2-3% tax rate. | Learn More |
| Solar Renewable Energy Certificates (SRECs) | State program | Small additional income from selling certificates. 7kW system earns ~$20-40/year at current prices. Requires PUCO certification. | Learn More |
Ohio’s Property Tax Exemption removes the added property value of your solar energy system from your property tax assessment. This means you won’t pay additional property taxes on the increased home value that comes from installing solar panels. Under Ohio Revised Code Section 5709.53, any solar energy system with a capacity of 250 kilowatts or less is exempt from real property taxation if construction or installation was completed on or after January 1, 2010.
The financial benefit depends on your local property tax rate and your system’s value. For example, if your solar installation adds $20,000 to your home’s value and your local property tax rate is 2%, you would save approximately $400 per year in property taxes. This exemption continues for as long as you own the system, providing ongoing savings throughout the life of your solar panels. There is no application deadline—any eligible system installed after January 1, 2010, automatically qualifies for this exemption. Your system must have a nameplate capacity of 250 kilowatts or less, which covers virtually all residential solar installations.
Unfortunately, Ohio does not currently have an active Solar Renewable Energy Certificate (SREC) market or program. While some states allow homeowners to earn and sell SRECs as a way to generate ongoing income from their solar panels, Ohio has not established this type of incentive program for residential solar systems.
If you’re considering solar in Ohio, you may still be eligible for other incentives such as local utility programs, property tax exemptions, or sales tax exemptions on solar equipment. It’s worth checking with your local utility company and reviewing other available Ohio solar incentives to understand the full financial picture for your solar investment. While SRECs aren’t available, solar can still provide significant savings through reduced electricity bills and other state-level benefits.
Net metering in Ohio allows homeowners with solar panels to receive credit for the excess electricity their system produces and sends back to the grid. Each month, your utility company tracks how much solar energy you export versus how much electricity you consume from the grid. The energy you send back offsets your consumption on a 1:1 basis, meaning every kilowatt-hour (kWh) you export cancels out one kWh you use from the grid during that same billing period.
If your solar system produces more electricity than you use in a given month, the excess credits carry forward to your next monthly bill. However, these excess credits are valued at the generation rate—typically between 5 to 12 cents per kWh depending on your utility company—rather than the full retail rate you pay for electricity. This generation rate is lower than your total electricity cost because it doesn’t include transmission, distribution, and other service charges. The specific rate and policies vary by utility provider, including AEP Ohio, Duke Energy, FirstEnergy companies (Ohio Edison, Cleveland Electric, Toledo Edison), and AES Ohio (formerly Dayton Power & Light). Your utility company will handle the monthly settlement automatically, and any unused credits typically reset at the end of each year.
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 QuoteDayton 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.
Dayton experiences four distinct seasons with moderate sunshine year-round. While winter months see less production, proper system design ensures strong annual output, making solar a smart investment here.
Solar Production in Dayton 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 Dayton
We’ve mapped every solar installation across the United States to help you explore which Dayton neighborhoods are embracing clean energy. Click any hexagon to discover how many homes in that area have made the switch to solar.
Leasing Solar Panels
In Dayton, homeowners served by AES Ohio (formerly Dayton Power & Light) have access to Power Purchase Agreements (PPAs) through Palmetto. With a PPA, you pay only for the electricity your solar panels produce at a fixed rate per kilowatt-hour, rather than purchasing the system outright.
This arrangement means no large upfront investment, no maintenance responsibilities, and immediate energy savings. Your monthly solar costs vary seasonally—typically higher in summer when panels produce more—but annual savings remain consistent. Palmetto’s LightReach program handles all system maintenance and monitoring, so you simply enjoy cleaner energy and lower bills.
Compared to cash purchases, PPAs eliminate concerns about system performance, repairs, or equipment warranties. You avoid the financial commitment while still reducing your carbon footprint and protecting yourself from utility rate increases over time.
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!
Learn MoreFrequently Asked Questions
Yes, solar makes sense in Dayton. With 4.6 peak sun hours daily, a typical 8.19 kW system can save approximately $64,079 over 25 years with an 11.2-year payback period. Ohio electricity rates have increased 25.8% since 2021, reaching 16.1¢/kWh in 2024.
Solar panels lock in predictable energy costs while protecting you from future utility rate increases. Property tax exemptions and net metering programs further improve the financial benefits for Dayton homeowners.
Yes, Dayton has net metering through AES Ohio (formerly Dayton Power & Light). Each month, your solar production is netted against your consumption on a 1:1 basis at the retail rate.
Any excess production above your monthly usage carries forward to the next billing cycle at the generation rate (approximately 5¢/kWh). This allows you to build credits during sunny months and use them when production is lower.
Yes, solar panels increase home value in Dayton. Research from Zillow shows solar panels increase home value by 4.1% on average. For a median-priced Dayton home, this translates to thousands of dollars in added equity.
Ohio’s property tax exemption means you won’t pay additional property taxes on this increased value. Solar panels make your home more attractive to buyers who value lower energy costs and environmental benefits.
Solar installation costs in Dayton vary by home size. A typical medium home (2,000-3,000 sq ft) needs an 8.19 kW system costing approximately $23,379, or $2.85 per watt. Small homes (under 2,000 sq ft) average $17,107 for a 5.74 kW system, while large homes (over 3,000 sq ft) run about $30,061 for 10.80 kW.
These prices reflect complete installations based on actual Dayton-area projects. System costs depend on your roof characteristics, energy usage, and equipment choices. Ohio’s property tax exemption means you won’t pay additional taxes on your system’s added home value.
Yes, solar is financially worth it in Dayton. A typical 8.19 kW system costs $23,379 and saves approximately $64,079 over 25 years, with an 11.2-year payback period. Monthly savings average $146.
With Ohio electricity rates rising 25.8% since 2021 to 16.1¢/kWh, solar locks in predictable energy costs. Property tax exemptions and net metering further improve returns, making solar a sound long-term investment for Dayton homeowners.
At Palmetto, we’ve completed 1,335 solar installations across Ohio since 2020, bringing clean energy to communities throughout the state. We combine national resources with local expertise to serve Dayton homeowners.
Our approach focuses on flexible financing options and a reliable installation network. We handle everything from system design to permitting, making the transition to solar straightforward for your home.