Toledo, OH Solar Panels
Solar Power in Toledo
Considering solar energy for your Toledo 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 use as a way to stabilize their monthly energy costs.
This guide covers everything you need to know—from how Toledo’s climate affects solar performance to installation costs and available incentives.
How Much Do Solar Panels Cost in Toledo, OH?
Our calculator uses real installation data from Toledo homeowners—including those in Sylvania, Perrysburg, Maumee, and Oregon—to show you accurate solar costs for your area. Get personalized estimates based on actual local projects, not national averages.
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You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Toledo solar panels generate reliable power year-round despite Ohio’s cloudy reputation, producing enough electricity to offset most household energy needs.
- Ohio electricity rates jumped 25.8% from 2021 to 2024, making solar an effective way to lock in predictable energy costs for decades.
- A typical Toledo solar system costs around $23,000 and can save homeowners over $62,000 in electricity costs over 25 years.
Toledo Electricity Prices
Understanding Ohio electricity costs is essential when evaluating your home energy options. Let’s look at how rates have changed in recent years.
From 2021 to 2024, Ohio electricity rates rose from 12.8 to 16.1 cents per kilowatt-hour—a 25.8% increase in just three years. For Toledo homeowners, this translates to significantly higher monthly bills.
Solar panel installation offers Toledo residents a way to generate their own electricity at a fixed cost. Once your system is installed, you’re producing power at a predictable rate, insulated from future utility price increases.
Over a 25-year lifespan, solar panels can shield your household from decades of rate hikes. While utility costs continue climbing, your solar investment maintains stable energy expenses for your Toledo home.
Price of Energy: Ohio vs National Average
Toledo Area Utility Providers
Toledo residents are served primarily by Cleveland Electric and FirstEnergy. According to 2023 data, both utilities charge below the national average of 16.0¢ per kWh—Cleveland Electric at 14.4¢ and FirstEnergy at 14.6¢ per kWh.
These rates sit slightly below Ohio’s state average of 15.4¢ per kWh, largely due to the region’s access to diverse energy sources including coal, natural gas, and nuclear power, which help keep generation costs competitive.
While Toledo’s current rates are reasonable, electricity prices have risen steadily over recent years. Solar panels allow homeowners to lock in predictable energy costs and reduce dependence on utility rate changes over time.
Toledo Utilities Electricity Rates
Ohio Solar Incentives
Ohio offers several solar incentives in Ohio that help reduce the upfront cost and ongoing expenses of going solar in Toledo.
These programs include property tax exemptions on your system’s added home value, net metering credits that offset your electric bills, and Solar Renewable Energy Certificates that provide modest additional income over time.
Incentive programs can change, so it’s worth researching current offerings thoroughly. Acting sooner rather than later ensures you lock in today’s available benefits.
| 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 varies based on your local property tax rate and the value of your solar system, but typically saves homeowners hundreds of dollars annually. 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 investment.
To qualify, your solar energy system must have a nameplate capacity of 250 kilowatts or less, which covers virtually all residential installations. The system must have been installed on or after January 1, 2010. There is no application deadline—the exemption applies automatically once your system is installed and operational. Your local county auditor will handle the exemption when assessing your property value, though you may need to provide documentation of your solar installation.
Unfortunately, Ohio does not currently have an active Solar Renewable Energy Certificate (SREC) market or program. While some states allow solar system owners to earn and sell SRECs as a way to generate ongoing income from their solar energy production, Ohio has not established this type of incentive program for residential solar customers.
If you’re considering solar in Ohio, you may still be eligible for other incentives such as net metering (which credits you for excess energy sent to the grid), local utility rebates, or property tax exemptions for solar installations. It’s worth checking with your local utility company and installer to understand what financial benefits are currently available in your area. While an SREC program could provide additional value if introduced in the future, Ohio homeowners can still benefit from reduced electricity bills and other available solar incentives.
Net metering in Ohio allows homeowners with solar panels to receive credit for the excess electricity their system produces and sends back to the power grid. When your solar panels generate more electricity than your home uses during the day, that surplus energy flows to the grid, and you receive a credit on your electric bill. This credit offsets the electricity you draw from the grid when your panels aren’t producing enough power, such as at night or on cloudy days.
In Ohio, net metering works on a monthly basis across all major utility companies, including AEP Ohio, Duke Energy, FirstEnergy utilities (Ohio Edison, Cleveland Electric, Toledo Edison), and AES Ohio. Each month, the electricity you export to the grid is credited against your total consumption on a 1:1 basis at the full retail rate. If you produce more electricity than you consume in a given month, the excess credits carry forward to your next billing cycle, though these are valued at the lower generation rate (typically ranging from 5 to 12 cents per kilowatt-hour, depending on your utility). This monthly settlement structure means you’ll want to size your solar system to closely match your annual electricity needs for maximum financial benefit.
Net metering is available to residential solar customers across Ohio’s investor-owned utilities. There are no specific deadlines to enroll, as this is an ongoing program established under Ohio law. However, it’s important to understand that excess credits accumulated throughout the year are settled at the generation rate rather than the full retail rate, so careful system sizing with your solar provider is essential to optimize your savings.
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 QuoteToledo 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.
Toledo’s solar potential surprises many. Despite cloudy winters and lake-effect weather, your panels capture plenty of sunlight year-round. Smart system design maximizes production during Ohio’s sunny seasons.
Solar Production in Toledo 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 Toledo
We’ve mapped every solar installation across Toledo to help you explore the clean energy movement in your community. Click any hexagon to see how many neighbors in that area have made the switch to solar power.
Leasing Solar Panels
In Toledo, Palmetto offers Power Purchase Agreements (PPAs) through Toledo Edison. With a PPA, you pay only for the electricity your panels produce at a set rate per kilowatt-hour—typically lower than what you’d pay your utility. Your payments fluctuate with seasonal production, meaning higher bills in sunny summer months and lower bills in winter.
Unlike purchasing a system outright, a PPA requires no upfront investment. Palmetto owns, maintains, and monitors your system throughout the agreement term. You simply enjoy clean energy and predictable rates without worrying about equipment repairs or performance issues.
Through Palmetto’s LightReach program, you can access solar savings immediately while we handle all system responsibilities. This option works well for Toledo homeowners who want solar benefits without the maintenance commitment or large initial investment.
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 Toledo. Despite Ohio’s cloudy reputation, Toledo receives enough sunlight to generate significant electricity year-round. A typical 10 kW system produces around 13,026 kWh annually—enough to offset most household energy needs.
With Ohio electricity rates rising 25.8% from 2021 to 2024, solar panels help lock in predictable energy costs. Toledo homeowners can save over $62,000 over 25 years while reducing their carbon footprint and taking advantage of net metering and property tax exemptions.
Yes, Toledo has net metering through Toledo Edison (FirstEnergy). Your solar system receives full retail credit for excess electricity sent to the grid each month, offsetting your consumption on a 1:1 basis.
Any surplus production beyond your monthly usage carries forward to the next billing cycle at the generation rate (5-12 cents/kWh). This monthly settlement structure helps maximize your solar savings throughout the year.
Yes, solar panels increase home value in Toledo. Research shows that homes with solar systems sell for more than comparable homes without them. A Zillow study found that solar panels increase home value by 4.1% on average across the United States.
For a Toledo home valued at $200,000, this translates to an additional $8,200 in resale value. Plus, Ohio’s property tax exemption means you won’t pay extra taxes on this increased value, maximizing your return on investment.
In Toledo, a typical solar installation costs around $23,000 for an 8.19 kW system—about $2.85 per watt. This system size is designed to offset approximately 100% of electricity usage for a medium-sized home (2,000-3,000 sq ft).
Over 25 years, Toledo homeowners save approximately $62,500 in electricity costs, with an average payback period of 11.4 years. Smaller homes (up to 2,000 sq ft) need 5.74 kW systems costing around $17,100, while larger homes (over 3,000 sq ft) typically require 10.80 kW systems at approximately $30,000.
Yes, solar is financially worth it in Toledo. A typical 8.19 kW system costs around $23,000 and saves homeowners approximately $62,500 over 25 years, with an average payback period of 11.4 years.
With Ohio electricity rates rising 25.8% from 2021 to 2024, solar panels help lock in predictable energy costs while increasing home value. Toledo homeowners also benefit from net metering credits and property tax exemptions that maximize long-term savings.
At Palmetto, we’ve completed over 1,335 installations across Ohio since 2020, bringing our national expertise to local communities. We offer competitive financing options and work with a trusted network of installers to ensure quality service from start to finish.
Our approach combines personalized solar design with transparent pricing and ongoing support. We handle everything from system design to permitting, making the transition to solar straightforward for Toledo homeowners.