Solar incentives in Ohio: All in one place

With nearly 5 hours of peak sunlight, a solar system in Ohio pays off in spades. If the upfront costs are what scares you, Ohio solar incentives will help to bring your expenses down.

Save 30% of your PV system cost with Federal Solar Tax Credit

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

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Sell excess electricity with net metering program

Solar laws in Ohio allow customers of investor-owned utilities and electric cooperatives to join net metering programs. This gives solar owners an opportunity to put the excess electricity into the utility grid instead of storing it in batteries.

When you sell your solar power to the grid, you receive credits that can be used to offset your future bills. Credits are stored for 12 months and any unused credits can be refunded at the end of the term. The value of a credit is determined by your location and power utility.

One of the best utility net metering programs in Ohio is with Duke Energy offered for both residential and commercial customers. To join their net metering program is a two-step application process along with an interconnection fee. An inspection of your solar system may be required before Duke Energy confirms the process is complete.

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Save up to $1,000 a year trading SRECs

Solar Renewable Energy Credits are certificates granted to any person or entity upon generation of each Megawatt-hour of clean electricity with solar panels. Unlike with net metering, you don’t need to sell any electricity to get credits. The value of SRECs is always changing, which makes them similar to stock market assets. Based on the available data, selling RECs could mean anywhere from $300 to $1,000 annually for a 10kW solar system. To participate, contact the Public Utilities Commission of Ohio for relevant details. After that, you can create a SREC account with the Midwest Renewable Energy Tracking System or PJM EIS’s Generation Attribute Tracking System (M-RETS, PJM-GATS) to begin storing and selling your credits.

Reduce your loan interest rate by 3% with the special ECO-link program

The Energy Conversation for Ohioans (ECO-Link) program provides up to a 3% interest rate reduction for up to 7 years on bank loans. The loan can not exceed $50,000, and at least 50% of the loan should be spent on your solar project. The other 50% can be used for any other home improvement strategy.

To take part in the program, apply for a home improvement loan in one of the participating financial institutions. Right after determining loan terms, complete online applications together with the loan officer.

Raise your property value but not your taxes

Ohio residents invested in a solar energy system will not have to pay any additional property taxes on the added value they bring to their homes due to the property tax exemption for renewable energy systems. Ohio Revised Code ensures any new PV system installed will not be part of your property tax. However, any such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report.

Solar Easements will protect your solar panels from shade

A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but cannot be canceled unless a specific clause is included in the document. Any such agreement must be created in written form and must meet the general requirements for legal contracts.

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Julia Zaraeva

Author

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

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