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 and related equipment add value to your home, they won’t increase your annual property tax bill. The exemption applies to the actual renewable energy system components, helping you save money every year you own the system.

To qualify for this exemption, your energy system 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 mentioned in the law, but you’ll need to work with your local tax assessor to ensure the exemption is properly applied to your property. This ongoing tax savings can add up to significant money over the life of your solar system, making your investment in clean energy even more financially attractive.

Solar Renewable Energy Certificates (SRECs) are tradeable credits that Ohio 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 $10-40 each in Ohio’s market. A typical home solar system might generate 10-15 SRECs per year, providing an additional $100-600 in annual income beyond your electricity savings. You can sell these credits through online marketplaces or aggregation services, creating a steady revenue stream for 15-20 years.

To participate, you need a solar system that’s interconnected with your utility 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, and you’ll need to actively manage the sale of your certificates or work with a service that handles transactions for you.

Net metering in Ohio allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, that extra power 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 solar 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 solar production. This means you receive full retail rate credit for the solar energy you export to the grid during the same billing period. However, any excess credits that remain 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 receive around 5-10 cents per kWh.

Net metering is available to residential customers of all major Ohio utilities including AEP Ohio, Duke Energy Ohio, FirstEnergy companies (OhioEdison, Cleveland Electric, Toledo Edison), and AES Ohio. There are no specific deadlines for enrollment, as this is an ongoing program. However, homeowners should be aware that generation rates can fluctuate over time – for instance, AES Ohio’s rate temporarily increased to 10.8 cents per kWh from June 2022 to May 2024 before returning to typical levels of 5-7 cents per kWh.