Solar Guide

Ohio’s Property Tax Exemption allows homeowners with solar, wind, or hydrothermal energy systems to avoid paying property taxes on their renewable energy equipment. This means that even though your solar panels or other renewable energy system adds value to your home, you won’t see an increase in your annual property tax bill because of that added value.

The financial benefit varies based on your local property tax rate and the value of your energy system, but it can save you hundreds of dollars annually. For example, if your solar system adds $20,000 in value to your home and your local property tax rate is 1.5%, you would save $300 per year in property taxes. To qualify, your energy facility must have a nameplate capacity of 250 kilowatts or less, and construction or installation must be completed on or after January 1, 2010. There are no application deadlines since the exemption applies automatically once your system is installed and meets the requirements.

This exemption continues for the life of your renewable energy system, making it a long-term financial benefit that reduces your ongoing homeownership costs while you enjoy clean energy savings.

Solar Renewable Energy Certificates (SRECs) in Ohio are tradeable credits that solar system owners earn for the clean electricity their panels produce. For every 1,000 kilowatt-hours (kWh) of solar energy your system generates, you earn one SREC that can be sold to utility companies who need these credits to meet state renewable energy requirements.

The financial value of SRECs varies based on market demand, but they typically sell for $10-50 each in Ohio’s market. A typical home solar system might generate 10-15 SRECs per year, providing an ongoing income stream that helps offset your solar investment costs. You can sell these credits through online marketplaces or aggregators who handle the transactions for you.

To participate, you need a solar system that’s connected to the grid and registered with Ohio’s renewable energy tracking system. There’s no specific deadline to join, but you must register your system to start earning credits. Keep in mind that SREC prices fluctuate with market conditions, so the income isn’t guaranteed to stay at any particular level over time.

Net metering in Ohio allows homeowners with solar panels to receive credit for the excess electricity their system produces and sends back to the utility grid. When your solar panels generate more power than your home uses during the day, that extra electricity flows to the grid and you receive credits on your electric bill. These credits can then offset the electricity you use from the grid when your panels aren’t producing enough power, such as at night or during cloudy days.

The financial benefit varies by utility company, but all major Ohio utilities offer monthly net metering with 1:1 credit for excess production. This means you receive full retail rate credit for each kilowatt-hour you send to the grid. However, any excess credits remaining at the end of each month are carried forward at a lower generation rate, typically ranging from 5-12 cents per kWh depending on your utility company. For example, AEP Ohio customers receive generation rates of approximately 6-11 cents per kWh for excess credits, while Duke Energy Ohio customers see rates around 5-10 cents per kWh.

Net metering is available to residential solar customers across Ohio’s major utility territories, including AEP Ohio, Duke Energy Ohio, FirstEnergy companies (OhioEdison, Cleveland Electric Illuminating, Toledo Edison), and AES Ohio. There are no specific deadlines for enrollment, as this is an ongoing program. However, homeowners should be aware that excess credits are settled monthly at the lower generation rate rather than being carried forward indefinitely at full retail value, making proper system sizing important to maximize savings.