Solar Panels Ohio

Putting solar power on your Ohio house is a good investment. As according state law, utilities need to provide customers with full retail net metering; as a result, Ohio homeowners can significantly reduce their electricity costs by adding solar. Also, Ohio has a solar carve-out in its renewable portfolio standard, which requires that utilities obtain 12.5% of the electricity they sell from renewable sources by 2027.

Solar Panels Ohio

Are solar panels worth it in Ohio?

In the past 10 years, the price of solar panels has decreased by more than 80%. They continue to get incentives from the net metering law and the 30% federal tax credit in 2022, making them a wise investment. They provide a return that is considerably higher than the long-term average return from both the stock market and real property investment.

The configurations per kWh of energy you will use over the next 25 years, with and without solar panels, is another way to frame this topic. As you can see here, there are sizable savings.

Solar Panel Ohio

Solar panels can be a great way to generate clean, renewable energy for your home or business in Ohio. However, the effectiveness of solar panels in Ohio will depend on a variety of factors, such as the location of your property, the size and orientation of your roof, and the amount of sunlight your area receives throughout the year. Ohio receives an average of about 4 hours of direct sunlight per day, which is lower than many other parts of the country. However, advances in solar technology have made it possible to generate significant amounts of electricity even in areas with lower levels of sunlight.

To get started with solar panels in Ohio, you will need to find a reputable solar installer in your area. They can help you determine the best type and size of solar panel system for your property, as well as provide information about available incentives and financing options.

Ohio’ Renewable and Advanced Energy Portfolio Standard

Ohio joined the 36 states that required a percentage of the state’s energy output to come from renewable or cutting-edge energy sources when Senate Bill 221 was enacted in 2008. The law mandated that utilities get a part of their power needs from these non-conventional sources.

Each utility in Ohio must generate 25% of the power it distributes from alternative sources by the year 2025. Renewable energy sources like wind, hydro, biomass, and at least 0.5% solar must make up a minimum of 12.5% of the total electricity generated. The residual energy may be generated using trying to cut energy sources including nuclear power, clean coal, and specific kinds of fuel cells. Furthermore, at least 50% of the renewable energy used must be produced at sites in Ohio.

Ohio solar incentives & tax credits

Federal solar tax credit

The federal solar tax credit is the main motivator for putting panels on homes and businesses. The solar installation costs are worth 30% of the tax credit. Hence, you may deduct $6,000 from your federal income taxes if you build a solar system that expenses $20,000!

Up to 2032, the tax credit will stay at 30%. The credit will be reduced to 26% in 2033. Before fully ending in 2035, the value decreases once more in 2034 to 22%.

Net metering

According to Ohio law, all utilities have to provide their clients with full retail net metering. Customers that use net metering will save loads of cash on solar energy as they’ll be paid the full retail value for every kilowatt-hour (kWh) of energy their solar energy systems produce! 


By law, utilities in Ohio must get 12.5% of the electricity they sell from renewable sources, with 0.5% of that proportion coming from solar energy. The solar renewable energy credits (SRECs), which represent the environmental benefits of producing one megawatt-hour (Mwah) of electricity from solar energy, are needed for utilities to meet this requirement.

Hence, when you install solar panels in Ohio, they will produce SRECs that you may sell in additional to power. Sadly, Ohio’s SREC market is oversaturated, making each SREC only worth $4.00. If SRECs stay at their present price, a system that produces 5 SRECs in a year will earn an extra $20 on top of the energy bill savings.

Solar Panels Ohio

Ohio sales and use tax exemption

Solar energy equipment is free from sales and use tax in Ohio. The exemption prevents the cost of solar photovoltaic systems from being raised by the state’s sales and use tax. You could possibly save a tone of money this way!

Ohio Renewable Energy Policy at Cross-Roads

The old adage “If you build it, they will come” comes from the movie Field of Dreams. It might also be used to describe Ohio’s energy strategy for creating more green jobs.

The adoption of a renewable energy portfolio standard (RPS) and the use of grant money, as according policymakers, would drive up prices for renewable energy in the State. Manufacturers would be more inclined to set up shop in the State if demand for solar, biomass, and wind projects significantly rose.

Governor Strickland was a passionate advocate for creating demand through public initiatives. Less convinced are Republican-controlled legislators and Governor Kasich.

How Do Solar Warranties Work in Ohio?

Because those solar power systems have a lifetime of 25 years or longer, warranties are a critical element of any deal. Installers in Ohio often provide the following warranties/guarantees, which are similar to those offered as solar warranties elsewhere:

Equipment warranty

Equipment warranties, which are transmitted from the original manufacturer, guard your solar equipment against poor manufacturing. Depending on the type, solar panels have warranties of between 10 and 15 years, while inverters and batteries often have guarantees of 10 years.

Workmanship/labour warranty

A labour warranty, as the title suggests, covers the system installation work. The standard in the solar business is five to ten years, but in some cases it might last as long as twenty-five years (the lifetime of your system).

Performance guarantee

A working system is useless if the generated electricity is much less than promised. Performance guarantees therefore are necessary, as a result of which the system must guarantee a specific output at various points over its life. For example, some solar panels have performance assurances that their output would reach 90% by year 10 and 80% by year 25 or year 30.

Ohio Solar Panel Permits

To put solar panels on your property, you may need to get one or more permits, depending on where you live. These permits, which are required by your local city office and/or utility company, may include construction, zoning, and electrical contracting permits.

Fortunately, since installers often handle the whole process, solar buyers don’t need to worry about the permitting process. The price of your installation of solar panels includes the fees for these permits as well.

Final Inspection for Installed Solar Panels in Ohio

After installation, your solar power system has to pass an inspection before it can start shipping clean energy to your house. Your neighbourhood utility provider will send someone to examine the installation after your system is installed. This ensures that the equipment is placed safely and does not jeopardize the security of grid employees or homes.

Your municipal office could also want to examine the system, based on your location, to make sure your roof can support the weight of the system for an extended period of time. The inspection will take an hour or longer and won’t set you back any extra money.

Ohio’s Advanced Energy Fund Comes to an End

The Ohio Advanced Energy Fund was created to offer loans and incentives to help commercial and residential renewable energy projects get past the early financial scandals. Every Oho electric utility customers were paid a monthly charge of 9 cents to cover the cost of the Fund. Customers from residential, commercial, and industrial sectors all paid the same price. There was $1.08 in annual fees irrespective of whether you owned a house or a factor.

The Legislature’s decision to cancel the programmed will reduce sales for renewable energy goods like solar panels and wind turbines at a time when Ohio’s clean energy sector is seeing real growth, according to a July 16 Plain Dealer article on the Ohio Advanced Energy Fund.

Prices, savings, and payback for solar energy in your region in Ohio

After collecting the 30% federal solar tax credit, the average price for an installed residential solar system in Ohio is currently $10,517. The cost per watt is $2.50. The price for solar power varies somewhat across the state, though. The price of installed solar systems in your region of the state is shown in the graph below.

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