Ohio solar 101: must read before you buy solar panels

The Solar Investment Tax Credit (ITC) allows homeowners to claim 26% of the cost of their solar power system installed until 2022 as an income tax deduction. For example, if your solar system costs $20,000, you are eligible for $5,200 (26% of the total gross cost) in tax credit. Solar system cost comprises not only the money spent on solar panels, but also freight shipping costs, professional installer fees, tools bought or rented, and so on. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

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.

Solar Renewable Energy Credits are certificates granted to any person or entity upon generation of each MWh 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 10 kW solar system. To participate, first you may want to 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.

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.

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 2019 Zillow report.

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.

It is legal to install solar panels on your house in Ohio. However, there is no statewide legislation that makes it unlawful to restrict the installation of solar PV systems. Contact your homeowner’s association (HOAs) to be certain of any regulations that may be in your area. HOAs in Ohio define a neighborhood’s aesthetic rules. You may have to submit your project for approval before changing the exterior of your house. The board may ask you to hide the system from view, reduce the number of panels or just reject your proposal.

Storm activity is the most common from June through November. Located near the east coast, Ohio residents should always be prepared for a hurricane. In 2012, Hurricane Sandy left at least 250,000 customers without power throughout Ohio. Those who had a solar system installed were not affected that much, as solar panels are manufactured to easily withstand hurricanes. As stated by the Environmental Protection Agency, our climate is changing and natural disasters are becoming more frequent. Powering your home with solar energy, you will no longer have to worry about blackouts.