Youngstown, OH

Ohio offers a Property Tax Exemption for renewable energy systems that provides significant financial benefits to homeowners who install solar energy systems. This state tax exemption means that the value added to your property by installing a solar system will not increase your property tax bill. Without this exemption, the improved property value from your solar installation could result in higher property taxes.

There are two key provisions in this incentive. First, solar energy systems installed between August 14, 1979, and December 31, 1985, are exempt from property taxes if they met the state’s guidelines. Second, and more relevant for today’s homeowners, any solar energy facility with a capacity of 250 kilowatts or less is completely exempt from property taxation if installed on or after January 1, 2010. This second provision has no expiration date, making it an ongoing benefit for Ohio homeowners considering solar installation. Since most residential solar systems fall well below the 250 kilowatt threshold, virtually all home solar installations in Ohio qualify for this valuable tax exemption.

Solar Renewable Energy Certificates (SRECs) in Ohio offer homeowners a way to earn extra income from their 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 on the SREC market to utilities that need to meet their renewable energy requirements, creating an additional revenue stream beyond your electricity savings.

The value of SRECs in Ohio varies based on market conditions, typically ranging from $5 to $15 per certificate in recent years. For a typical 7-10 kW residential solar system, this might generate 7-10 SRECs annually, potentially adding $35-$150 to your yearly solar benefits. To qualify, your solar system must be certified through the Public Utilities Commission of Ohio (PUCO). There’s no set expiration date for this program, but market values can fluctuate over time based on state renewable portfolio standards and market demand. Homeowners should work with a registered SREC aggregator to simplify the selling process and maximize returns.

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 will track both the electricity you consume from the grid and the excess solar energy your system exports. Each month, these amounts are balanced against each other on a one-to-one basis, potentially reducing your electric bill significantly.

When your solar system produces more electricity than you use in a month, the excess is carried forward to your next monthly bill as a credit valued at the generation rate. This rate typically ranges from 5-12 cents per kilowatt-hour, depending on your utility provider. For example, AEP Ohio customers receive approximately 6-11 cents/kWh, while Duke Energy customers receive about 5-10 cents/kWh. This monthly settlement approach means you’ll always receive fair value for your solar production without annual resets that might cause you to lose accumulated credits.

All major Ohio utilities participate in this program, including AEP Ohio, Ohio Edison, Illuminating Company, Duke Energy, AES Ohio (formerly Dayton Power & Light), and Toledo Edison. There are no specific deadlines to enroll, as this is an ongoing program available to residential solar customers. However, it’s worth noting that generation rates can fluctuate over time, as seen with AES Ohio’s temporary rate increase between 2022-2024, so the exact value of your excess generation credits may vary.