Ohio Solar Panels
In This Guide
Solar in Ohio
If you’re an Ohio homeowner exploring solar energy, you’ve come to the right place. With electricity prices jumping 31% from 2020 to 2024, thousands of residents across the state are turning to solar panels for home use to lock in predictable energy costs.
This guide covers everything from real installation costs and potential savings to available incentives and choosing the right system for your property—all tailored specifically to Ohio’s climate and regulations.
Ohio Solar Panel Cost
Our calculator uses real installation data from Ohio homeowners in Columbus, Cleveland, Cincinnati, Toledo, and beyond. Get personalized cost estimates based on actual solar projects completed in your area—not national averages or guesswork.
System
Cost
Savings
Key Takeaways
- Ohio electricity rates jumped 25.8% from 2021 to 2024, making solar panels a smart way to lock in predictable energy costs.
- The average Ohio solar system costs $23,379 and can save you approximately $57,000 over 25 years through reduced electricity bills.
- Ohio offers property tax exemptions and net metering that help maximize your solar investment without increasing your property taxes.
Looking for More Detailed Ohio City Guides?
Explore our comprehensive solar guides for major cities across Ohio to find location-specific information on incentives, installers, and solar potential.
Ohio Electricity Prices
Understanding Ohio’s 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’s average electricity rate climbed from 12.8 to 16.1 cents per kilowatt-hour—a 25.8% increase in just three years. That means the average household now pays significantly more for the same amount of energy.
Solar panels generate electricity at a fixed cost, helping homeowners avoid these unpredictable rate increases. Once your system is installed, you’re producing power at a consistent price for decades, regardless of how utility rates fluctuate.
Over a 25-year period, this price stability can translate to substantial savings. While utility rates continue their upward trend, solar homeowners lock in predictable energy costs and gain greater control over their monthly expenses.
Price of Energy: Ohio vs National Average
Ohio Area Utility Providers
Ohio’s electricity rates vary significantly by provider. Based on 2023 data, costs ranged from 14.4¢ per kWh with Cleveland Electric Illuminating to 18.6¢ per kWh with AEP Ohio, compared to the national average of 16.0¢ per kWh.
These price differences reflect each utility’s energy sources, infrastructure investments, and service territories. AEP Ohio’s higher rates stem partly from grid modernization costs, while Cleveland Electric Illuminating benefits from diverse energy procurement strategies that keep costs below state averages.
Understanding your utility’s rates helps you calculate potential solar savings. Since electricity prices historically trend upward, generating your own power can provide predictable energy costs for decades, insulating your household from future rate increases regardless of your provider.
Ohio Utilities Electricity Rates
Ohio Solar Incentives
Ohio homeowners can access several solar incentives in Ohio that help offset installation costs and improve long-term returns on your investment.
The state offers a property tax exemption that protects you from increased taxes on your home’s added value from solar. Net metering allows you to receive credit for excess electricity your system produces, offsetting future bills at retail rates.
These programs change periodically, so research current terms carefully. Acting sooner rather than later ensures you don’t miss out on available benefits for your solar investment.
| 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 protects homeowners from paying additional property taxes when they install solar panels on their home. Normally, when you make improvements that increase your home’s value, your property taxes go up accordingly. This state incentive ensures that the added value from your solar energy system (up to 250 kilowatts) won’t be included in your property tax assessment.
The financial benefit depends on your local property tax rate and system value. For example, if you install a $15,000 solar system in an area with a 2-3% property tax rate, you’ll save approximately $300-500 each year in property taxes that you would have otherwise paid. These savings continue for as long as you own the system, adding up to thousands of dollars over the lifetime of your solar panels.
This exemption is available to Ohio homeowners with solar systems up to 250 kilowatts, which covers virtually all residential installations. The exemption applies automatically once your system is installed—you don’t need to reapply each year. Be sure to verify the exemption with your local tax assessor to ensure it’s properly applied to your property tax bill.
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 benefit from other available incentives such as net metering policies, local utility programs, or property tax exemptions for solar installations. It’s worth checking with your local utility provider and exploring federal incentives to understand the full financial picture for going solar in your area. The solar landscape is always evolving, so staying informed about new programs as they become available can help you maximize your investment.
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 month, that surplus energy flows to the grid and offsets your consumption on a 1-to-1 basis. This means every kilowatt-hour (kWh) you export cancels out a kWh you consume, helping reduce your monthly electric bill.
The financial benefit works on a monthly cycle across all major Ohio utilities, including AEP Ohio, Duke Energy, FirstEnergy companies (Ohio Edison, Cleveland Electric, Toledo Edison), and AES Ohio. If you produce more electricity than you use in a given month, the excess credits carry forward to your next bill at the generation rate, which typically ranges from 5 to 12 cents per kWh depending on your utility provider. This generation rate is lower than the full retail rate you pay for electricity, so you’ll see the greatest savings when you use the solar energy you produce in real-time rather than sending it back to the grid. The credits reset monthly rather than annually, meaning any unused credits are settled each billing cycle at this lower generation rate.
All residential solar customers in Ohio are eligible for net metering through their local utility company. There are no specific deadlines to enroll, as this is an ongoing program available to solar homeowners. Keep in mind that generation rates can fluctuate over time based on market conditions—for example, AES Ohio customers saw rates temporarily increase to 10.8 cents per kWh during 2022-2024 before returning to typical levels. Your solar installer will help you complete the necessary interconnection paperwork with your utility to activate net metering for your system.
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 QuoteOhio Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Ohio’s four distinct seasons create varying solar production throughout the year. Winter’s shorter days and cloud cover reduce output, while summer sunshine delivers peak performance. Solar still works great here year-round.
What Can the Average Ohio Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Ohio 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 Ohio 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 Installations in Ohio
We’ve mapped every solar installation across Ohio to help you explore the clean energy movement in your community. Click any hexagon to discover how many neighbors near you have already made the switch to solar power.
Leasing Solar Panels
Ohio homeowners have access to Power Purchase Agreements (PPAs) through Palmetto’s LightReach program across all major utility territories, including AEP Ohio, Duke Energy, FirstEnergy companies, and AES Ohio. With a PPA, you pay a set price per kilowatt-hour for the electricity your panels produce—typically lower than your current utility rate—rather than paying for the system upfront.
This financing option makes solar accessible without the large initial investment required for cash purchases. Palmetto owns, installs, and maintains your system at no cost to you, handling everything from permitting to ongoing service. You simply pay for the clean energy you use each month, with bills that vary seasonally as your panels produce more in summer and less in winter.
The LightReach program includes premium equipment, a 90% production guarantee, and comprehensive system protection—all managed by Palmetto Finance. Learn more about solar financing options to find the right fit for your home and budget.
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 for most Ohio homeowners. With electricity rates increasing 25.8% from 2021 to 2024, solar panels help you lock in predictable energy costs while reducing your monthly bills. The average Ohio system costs $23,379 and can save approximately $57,000 over 25 years.
Ohio’s net metering policy and property tax exemption further improve the financial benefits. Most homeowners see a payback period of around 12.5 years, with decades of savings afterward. Your specific savings depend on your energy usage, roof characteristics, and local utility rates.
Yes, Ohio has net metering available through all major utilities including AEP Ohio, Duke Energy, FirstEnergy companies, and AES Ohio. When your solar panels produce more electricity than you use during the month, that excess energy is credited against your consumption on a 1-to-1 basis.
Any surplus production beyond what you consumed that month carries forward to your next bill at the generation rate, typically ranging from 5 to 12 cents per kilowatt-hour depending on your utility provider. Credits reset monthly rather than annually, with unused credits settled each billing cycle at this generation rate.
Yes, solar panels typically increase home value in Ohio. Research from Zillow shows that homes with solar panels sell for approximately 4.1% more than comparable homes without solar systems.
For the average Ohio home valued at $225,000, this translates to roughly $9,225 in added value. Additionally, Ohio’s property tax exemption ensures you won’t pay higher property taxes on this increased value, making solar an even smarter investment for homeowners.
The average cost to install solar panels in Ohio is $23,379 for a typical 8.19 kW system, which works out to about $2.85 per watt. This investment can save you approximately $57,000 over 25 years through reduced electricity bills.
Your actual cost depends on your home’s energy usage, roof size and condition, and available incentives like Ohio’s property tax exemption and net metering. Most Ohio homeowners see a payback period of around 12.5 years, with monthly savings averaging $130.
For most Ohio homeowners, solar is financially worthwhile. The average system costs $23,379 and saves approximately $57,000 over 25 years, with a payback period around 12.5 years. After that, you enjoy decades of reduced electricity bills.
Ohio’s net metering and property tax exemption enhance returns. Your specific savings depend on your energy usage, roof characteristics, and utility rates—factors a solar assessment can clarify for your situation.
At Palmetto, we’ve completed over 1,335 solar installations across Ohio since 2020, serving homeowners in Columbus, Cleveland, Cincinnati, and beyond. We combine national resources with local expertise to deliver quality solar solutions tailored to Ohio’s climate and incentives.
Our approach focuses on transparent pricing, flexible financing options, and reliable installation partners. We handle everything from design to permitting, making the transition to solar straightforward for Ohio families.