Toledo, OH

Ohio offers a Property Tax Exemption for renewable energy systems that allows homeowners to avoid paying additional property taxes on the value that solar panels add to their homes. This means when you install a qualifying solar energy system, the increased property value won’t result in higher property tax bills, potentially saving you thousands of dollars over the life of your system.

There are two key eligibility paths for this exemption. First, solar energy systems installed between August 14, 1979, and December 31, 1985, that meet state guidelines are exempt from property taxation. Second, and more relevant for current homeowners, any solar installation with a nameplate capacity of 250 kilowatts or less completed on or after January 1, 2010, qualifies for the exemption. Most residential solar systems fall well below this capacity limit, making this benefit accessible to virtually all Ohio homeowners going solar today. There is no application process mentioned in the statute, but consulting with a local tax professional is recommended to ensure you receive this benefit.

Solar Renewable Energy Certificates (SRECs) in Ohio are a valuable financial incentive for homeowners who install solar panels. When your solar system generates electricity, you earn one SREC for every megawatt-hour (1,000 kilowatt-hours) of electricity produced. These certificates can then be sold on the SREC market to utilities that need to meet their renewable energy requirements, creating an additional income stream beyond your electricity savings.

The value of SRECs fluctuates based on market conditions, but they typically range from $5 to $15 per certificate in Ohio. For a typical 7-10 kW residential solar system, this could generate 7-12 SRECs annually, potentially adding hundreds of dollars in extra income each year. To qualify, your solar system must be certified through the PJM-GATS tracking system, and you’ll need to work with an SREC aggregator or broker to sell your certificates. There is no set expiration date for Ohio’s SREC program, but market values can change over time as state renewable energy goals evolve.

Ohio’s Net Metering program allows solar homeowners to receive credit for the excess electricity their systems generate 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 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 are calculated and applied each billing period rather than annually. This is important to understand as you won’t be able to bank summer excess production for winter use beyond a single billing cycle.

One special consideration is that the generation rate used to value excess production can fluctuate. For example, AES Ohio (formerly Dayton Power & Light) saw rates increase significantly between 2022-2024, but these rates may decrease in the future. Homeowners should check their specific utility’s current generation rates when calculating potential savings from their solar investment.