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Solar incentives in Ohio: All in one place
- Updated: Mar 12, 2025
- 8 min
Edited by: Andrei Gorichenskii
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.
Key takeaways
- With nearly 5 hours of peak sunlight, a solar system in Ohio allows homeowners to boost their savings and lower electricity bills. Multiple federal and state financial solar incentives and rebates your solar system is eligible for can make this shift even more profitable.
- Ohio residents can claim a 30% federal tax credit on the total cost of their solar system installation.
- Investor-owned utilities and electric cooperatives offer net metering. Credits are stored for 12 months, with unused credits refunded at the end of the term. Credit value is determined by the utility.
- SRECs are earned for generating clean energy, regardless of selling electricity. SRECs can be stored and sold through M-RETS or PJM-GATS. Potential annual income of $300-$1,000 for a 10kW system. Contact the Public Utilities Commission of Ohio for details.
- ECO-Link Program provides up to a 3% interest rate reduction for up to 7 years on bank loans for solar projects. Loan cannot exceed $50,000, and at least 50% must be for solar.
- The added value of a solar PV system is exempt from property taxes. Property value increases by approximately 4%.
- Solar easements protect solar systems from shading. Voluntary agreements between property owners. Must be a written and legal contract.
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.
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.
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.
4%
this is how much solar panels increase the value of your house
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.
What are solar incentives, and why do they exist?
Solar incentives are financial programs designed to reduce the cost of installing solar energy systems. Governments implement these incentives to encourage the adoption of clean energy, recognizing that the initial expense is a significant barrier for many individuals and businesses.
These incentives take various forms. A common type is the tax credit, which allows individuals and businesses to deduct a specified amount from their tax liability. In some cases, this credit can result in a tax refund. Rebates offer direct financial returns after system installation, either as a check or a reduction in the overall system cost.
Feed-in tariffs provide another avenue for financial benefit. These programs enable solar system owners to sell surplus electricity back to the grid, generating revenue that can offset the system's initial investment and accelerate its payback period.
Governments promote solar energy for several key reasons. Transitioning to solar reduces pollution, improving public health and environmental sustainability. It also stimulates economic growth by creating jobs within the solar industry. Furthermore, it enhances energy security by decreasing reliance on fossil fuels.
For homeowners and businesses, solar incentives translate into substantial long-term savings. They lower the upfront costs of solar installation and reduce monthly electricity bills. Feed-in tariffs offer the potential for additional income. Ultimately, solar incentives make solar energy more accessible and affordable, enabling individuals and organizations to contribute to environmental sustainability while realizing significant financial advantages.
These incentives take various forms. A common type is the tax credit, which allows individuals and businesses to deduct a specified amount from their tax liability. In some cases, this credit can result in a tax refund. Rebates offer direct financial returns after system installation, either as a check or a reduction in the overall system cost.
Feed-in tariffs provide another avenue for financial benefit. These programs enable solar system owners to sell surplus electricity back to the grid, generating revenue that can offset the system's initial investment and accelerate its payback period.
Governments promote solar energy for several key reasons. Transitioning to solar reduces pollution, improving public health and environmental sustainability. It also stimulates economic growth by creating jobs within the solar industry. Furthermore, it enhances energy security by decreasing reliance on fossil fuels.
For homeowners and businesses, solar incentives translate into substantial long-term savings. They lower the upfront costs of solar installation and reduce monthly electricity bills. Feed-in tariffs offer the potential for additional income. Ultimately, solar incentives make solar energy more accessible and affordable, enabling individuals and organizations to contribute to environmental sustainability while realizing significant financial advantages.
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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