Solar Panels in Ohio
Sales Tax Exemption + SREC Market — Honest About Weak Net Metering
$900/yr
Avg. Annual Savings
4.2 peak hrs/day
Peak Sun Hours
12–16 years
Payback Period
$13,000–$20,000
Avg. System Cost
Overview
Is Solar Worth It in Ohio?
Ohio is an honest-to-goodness developing solar market — not the strongest in the country, but not without merit. The state's sales tax exemption, property tax exemption, and SREC program (expiring 2028) provide real financial value. The key caveat: Ohio's net metering policy credits excess generation at the avoided-cost rate (~$0.04/kWh) rather than the full retail rate, which means the economics favor homeowners who right-size their system to their consumption.
With electricity rates averaging $0.195/kWh and 4.2 peak sun hours per day, Ohio homeowners who size correctly can still achieve a reasonable payback period — but expectations should be set appropriately.
Benefits
Why Go Solar in Ohio
Reduce Your Electric Bill
Ohio homeowners save an average of $900/yr after going solar.
State & Local Incentives
Ohio offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Ohio Solar Incentives & Tax Credits
Ohio Sales Tax Exemption
Tax ExemptionSolar energy equipment is 100% exempt from Ohio's 5.75% state sales tax, saving homeowners $750–$1,150 on a typical installation.
Property Tax Exemption
Tax ExemptionResidential solar systems up to 250 kW are 100% exempt from property tax assessment increases in Ohio.
Ohio SREC Program (Expires 2028)
State ProgramOhio homeowners can earn Solar Renewable Energy Credits (SRECs) — one per 1,000 kWh generated — and sell them to utilities. The program is scheduled to expire in 2028.
Net Metering (Avoided-Cost Rate)
Net MeteringOhio utilities credit excess solar generation at the avoided-cost rate (~$0.038–$0.051/kWh), not the full retail rate. Size your system to match consumption for best economics.
Federal Solar Tax Credit (Expired)
Tax CreditThe federal 30% residential solar tax credit (Section 25D) expired December 31, 2025. Not available for 2026 purchases.
What Changed in 2026 for Ohio Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for Ohio homeowners and what options remain.
Federal ITC Gone — Ohio Has No State Solar Tax Credit
The 30% federal residential solar tax credit expired December 31, 2025. Ohio does not have a state-level solar income tax credit, making it one of the states most directly impacted by the ITC expiration. The full system cost is now out-of-pocket before any savings. A typical 8 kW system that cost ~$11,200 after the ITC now costs $16,000–$18,000 upfront in Ohio.
Sales and Property Tax Exemptions Remain Intact
Ohio continues to exempt solar equipment from the state sales tax and provides a 100% property tax exemption for residential solar systems up to 250 kW. These exemptions save homeowners $1,000–$1,400 on a typical installation and prevent property tax increases. Ohio's SREC program is scheduled to expire in 2028 — homeowners who enroll now can still earn SRECs for the remaining program years.
Net Metering at Avoided-Cost Rate — Not Full Retail
Ohio's net metering policy credits excess solar generation at the utility's avoided-cost rate — approximately $0.038–$0.051/kWh — which is significantly lower than the retail rate (~$0.195/kWh). This means Ohio solar owners save on what they self-consume but earn very little on what they export. Sizing your system to match your consumption (rather than over-building) is the correct strategy in Ohio.
Common Questions
Ohio Solar FAQ
Local Solar Companies
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