Nathan Healy
Certified by Nathan Healy
Updated: July 2025
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar in Ohio

Ohio homeowners are discovering solar’s potential as electricity prices have surged 31% from 2020 to 2024. With the state ranking 24th nationally for residential solar installations, there’s significant room for growth and savings potential in the Buckeye State.

Whether you’re exploring home solar panels for the first time or ready to make the switch, understanding Ohio’s solar landscape helps you make informed decisions. This comprehensive guide covers everything you need to know about solar installation in Ohio.

OHIO by the Numbers

24th Most residential solar in the United States
22k Households have installed solar panels
~$7k Ohio average solar rebate savings
~$57k Ohio average savings over 25 years
02

Key Takeaways

  • Ohio electricity rates jumped 26% from 2021-2024, making solar panels an increasingly smart investment for long-term energy savings.
  • Federal tax credits reduce solar costs by 30%, plus Ohio offers property tax exemptions on system value added to homes.
  • Average Ohio solar systems save $57,246 over 25 years while providing predictable energy costs and environmental benefits.
03

Palmetto Reviews

04

Solar Cost in Ohio

Our solar cost calculator uses real installation data from Ohio homeowners in Columbus, Cleveland, Cincinnati, and beyond. Get personalized pricing based on actual local projects, not generic estimates.

System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home in Ohio.
Recommended
System
8.19 kW
Typical for your home size in OH
Cost Breakdown
Your estimated investment
System Cost
$23,379
Federal Tax Credit (30%)
$-7,014
Final
Cost
$16,365
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$130
Payback Period
Break-even point
9.2 years
25-Year
Savings
$57,246

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.

05

Ohio Electricity Prices

Ohio electricity rates have climbed steadily, creating opportunities for Buckeye State residents to explore energy alternatives.

From 2021 to 2024, Ohio electricity costs jumped from 12.8 to 16.1 cents per kWh—a 26% increase that impacts household budgets statewide.

Solar panels generate electricity at a fixed cost, helping homeowners avoid future rate increases while reducing monthly energy expenses over time.

Over 25 years, solar systems can provide predictable energy costs, protecting Ohio families from continued utility rate fluctuations and inflation.

Price of Energy: Ohio vs National Average

10¢
20¢
30¢
13.7¢
12.8¢
15.0¢
13.9¢
16.0¢
15.4¢
16.5¢
16.1¢
2021
2022
2023
2024
US Average
Ohio

Ohio Area Utility Providers

Ohio’s major utility companies charge varying electricity rates, with 2023 data showing costs ranging from 14.2¢ to 18.6¢ per kilowatt-hour across different providers.

AEP Ohio leads with the highest rates at 18.6¢ per kWh, while South Central Power offers the lowest at 14.2¢, both compared to Ohio’s 15.4¢ average.

Higher electricity costs create greater potential savings with solar panels, as homeowners can reduce dependence on utility rates that continue rising over time.

Ohio Utilities Electricity Rates

Cleveland Electric Illuminating Company
14.40¢
-10%
Dayton Power & Light
16.40¢
+3%
Duke Energy
14.70¢
-8%
Ohio Edison
14.60¢
-9%
AEP Ohio
18.60¢
+16%
South Central Power
14.20¢
-11%
OH Average
15.40¢
-4%
US Average
16.0¢
06

Ohio Solar Incentives

Ohio solar installation costs become more affordable through multiple solar incentives in Ohio that reduce upfront expenses and ongoing costs.

Property tax exemptions protect homeowners from increased taxes on solar system value. Net metering allows excess energy to offset future bills at retail rates.

These Ohio solar incentives change frequently, so research current programs thoroughly and consider acting promptly to maximize available savings.

$7,014

Average savings in Ohio solar rebates

Incentive Type Description Source
Residential Clean Energy Credit Federal tax credit A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed Learn More
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

The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.

The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.

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 automatically applies to qualifying systems, making this a straightforward way to reduce the long-term costs of your renewable energy investment.

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 your SRECs 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. Your system must be located in Ohio and meet basic technical requirements. There’s no specific deadline to join the program, but you should register your system soon after installation to start earning credits. Keep in mind that SREC prices fluctuate with market conditions, so your annual income from certificate sales may vary from year to year.

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 into the grid and you receive a credit on your electric bill. At night or during cloudy days when your panels aren’t producing enough power, you can use these credits to offset the electricity you draw from the grid.

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 (typically 5-12 cents per kWh depending on your utility) for the solar energy you export to the grid. Any unused credits carry forward to your next monthly bill at the generation rate, which ranges from about 5-12 cents per kWh across different utilities. AEP Ohio customers see rates around 6-11 cents per kWh, while FirstEnergy and Duke Energy customers typically see 5-12 cents per kWh, and AES Ohio customers see around 5 cents per kWh (though rates can fluctuate based on market conditions).

Net metering is available to residential solar customers across Ohio’s major utility territories, including AEP Ohio, FirstEnergy companies (OhioEdison, Cleveland Electric/Illuminating Company, Toledo Edison), Duke Energy Ohio, and AES Ohio. The program operates on a monthly settlement basis, meaning your credits reset each month rather than carrying over annually. Homeowners should be aware that excess credits are valued at the generation rate rather than the full retail rate, so it’s most beneficial to size your solar system to closely match your annual electricity usage rather than significantly oversizing it.

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 Quote
07

Ohio Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Ohio’s variable weather and seasonal sun angles create unique solar conditions. Despite cloudy winters, proper system design maximizes year-round production effectively.

What Can the Average Ohio Solar System Power?

Summer Production (July)

45.8 kWh/day

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)

17.0 kWh/day

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

11930 kWh/year

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 Estimate
08

Solar Installations in Ohio

We’ve mapped every solar installation across the United States to show you something exciting: your Ohio neighbors are embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar power.

09

Leasing Solar Panels

In Ohio, Palmetto offers Power Purchase Agreements (PPAs) across all major utility territories, including AEP Ohio, FirstEnergy companies, Duke Energy, and AES Ohio. With a PPA, you pay for the energy your panels produce at a set rate per kilowatt-hour rather than a fixed monthly payment.

This approach provides predictable energy costs while avoiding the upfront investment and maintenance responsibilities of ownership. Unlike traditional solar purchases, our LightReach program includes everything from design and installation to ongoing maintenance and monitoring, all managed by Palmetto.

Our 90% Production Guarantee ensures your system performs as expected, and comprehensive protection coverage gives you peace of mind. LightReach centralizes everything into one inclusive price, eliminating the complexity of managing multiple vendors or worrying about system maintenance over time.

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 More
10

Frequently Asked Questions

Yes, solar makes sense in Ohio for most homeowners. With electricity rates jumping 26% from 2021-2024 and the 30% federal tax credit, solar provides strong financial returns.

Ohio’s property tax exemption and net metering programs enhance savings, while average systems save $57,246 over 25 years with predictable energy costs protecting against future rate increases.

Yes, Ohio has net metering across all major utility companies. Every utility provider offers monthly net metering with 1:1 credit for excess solar production during the billing cycle.

Excess credits carry forward monthly at generation rates (5-12¢/kWh depending on your utility). This allows homeowners to offset future electricity usage with solar energy they previously exported to the grid.

Yes, solar panels increase home value in Ohio. According to a Zillow study, solar panels increase home value by an average of 4.1% nationally, which translates to approximately $8,200 for Ohio’s median home price.

Ohio’s property tax exemption protects homeowners from paying additional taxes on the solar system’s added value, allowing you to enjoy the increased home equity without higher annual property tax bills.

Solar costs in Ohio range from $16,365 after federal tax credits for an average 8.19 kW system. Before incentives, systems typically cost around $23,379, but the 30% federal tax credit reduces this significantly.

Ohio’s property tax exemption provides additional savings by protecting homeowners from increased taxes on solar system value, making the investment more affordable for Buckeye State residents.

Solar is financially worth it in Ohio for most homeowners. With electricity rates rising 26% from 2021-2024 and the 30% federal tax credit, average systems save $57,246 over 25 years.

The typical payback period is 9.2 years, after which you enjoy free electricity while protecting against future utility rate increases that continue affecting non-solar neighbors.

We’re proud to serve Ohio homeowners as a national company with deep local expertise. Since 2020, we’ve completed 1,335 solar installations across Ohio, building strong relationships with Buckeye State families.

Our comprehensive approach includes industry-leading financing options and a trusted network of certified installers who understand Ohio’s unique solar landscape, regulations, and incentive programs.