Looking to reduce your energy bills while making a positive environmental impact? Ohio offers a range of solar incentives that make switching to solar energy more accessible and affordable. With various programs available, Ohio solar incentives can significantly lower the upfront cost, helping homeowners and businesses in the Buckeye State embrace clean energy solutions.
One of the main benefits of installing solar panels in Ohio is the financial support available. These include tax credits, rebates, and other programs specifically designed to reduce the initial investment. For many homeowners, these savings make solar energy a smart choice for long-term cost reduction and energy independence.
The Buckeye State has also emerged as a major player in the U.S. solar industry. With numerous solar manufacturing facilities throughout Ohio, this is not just about going green, it is about driving local job creation and boosting the economy. As investment in renewable energy grows, Ohio’s solar market continues to expand, offering benefits to both its residents and the environment.
Key Takeaways
- Ohio offers various solar incentives to make installation more affordable for homeowners.
- The state ranks 17th in the U.S. for solar power installations.
- Ohio’s expanding solar industry is creating jobs and fostering economic growth.
What are the Ohio Solar Incentives Available in 2024?
Ohio offers several incentives designed to make solar energy more affordable for homeowners. From tax breaks to financing programs, these options can help lower the cost of installation and reduce your ongoing energy bills. Let’s take a look at some of the key incentives available in 2024.
Solar Renewable Energy Credits (SRECs)
As a solar homeowner in Ohio, you can earn Solar Renewable Energy Credits (SRECs) for the clean energy your system produces. For every 1,000 kilowatt-hours of solar energy generated, you’ll earn one SREC. Ohio’s renewable energy mandate, which requires 8.5% of electricity to come from renewable sources by 2026, drives demand for these credits.
You can sell your SRECs on the open market, offering an additional source of income. In Ohio, current SREC prices range from $3 to $5 per credit. To get started, you’ll need to register your solar system with the state, something your solar installer can help you with.
Energy Conservation for Ohioans (ECO-Link) Program
The ECO-Link program offers reduced interest rates on loans for energy-efficient upgrades, including solar installations. You can benefit from a 3% interest rate reduction on a five-year loan or a 2% reduction on a seven-year loan, leading to significant savings over the life of your loan.
For example, on a $20,000 solar loan, ECO-Link could save you over $1,500 in interest. To apply, contact a participating bank and mention the ECO-Link program. You’ll also need to get an energy audit and show plans for your solar project to qualify.
Qualified Energy Project Tax Exemption
Ohio offers a sales tax exemption for certified energy projects, including solar installations. To qualify, your solar system must meet state efficiency standards, which your installer can help you navigate.
Given Ohio’s average sales tax rate of 5.75%, this exemption could save you $1,150 on a $20,000 solar system. Be sure to keep your certification paperwork handy for tax filing purposes.
Ohio Property-Assessed Clean Energy (PACE) Financing
PACE financing allows you to pay for your solar installation through your property tax bill, spreading the cost over 15 to 25 years. One of the key benefits is that there’s no upfront cost, and the interest rates are fixed, making it easier to budget.
However, PACE does create a lien on your property, so if you plan to sell your home in the future, it’s something to consider. Check with your local government to see if PACE is available in your area.
City of Cleveland’s Residential Tax Abatement
If you live in Cleveland, you can take advantage of a tax abatement that applies to the added value your solar panels bring to your home. This 15-year abatement means you won’t pay extra property taxes on the increase in your property’s value due to the solar installation.
To qualify, your home needs to meet specific energy efficiency standards, and your installer can help ensure you meet these requirements.
Remember, the abatement only applies to the value added by solar. You’ll still pay regular property taxes on your home’s original value.
Cincinnati Property Tax Exemption
Cincinnati offers a similar property tax exemption for solar installations, with 15 years of tax relief. To qualify, your home must meet LEED certification standards, which involve achieving certain energy efficiency and sustainability benchmarks.
The exemption covers 100% of the property value increase from your solar installation. This can lead to significant savings over 15 years.
Contact the Cincinnati Department of Community and Economic Development for more information on applying.
Hamilton County Home Improvement Program (HIP)
If you live in Hamilton County, the HIP program provides low-interest loans for home improvements, including solar installations. You can secure a five-year loan with an interest rate that’s 3% below market rates, making it easier to finance your solar project.
To qualify, you must own and occupy your home, and there are income limits based on household size.
Contact the Hamilton County Development Company to apply. They can help you determine if you’re eligible and guide you through the process.
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a fantastic opportunity for Ohio homeowners looking to invest in solar energy. By taking advantage of this program, you can claim 30% of your solar installation costs as a credit on your federal taxes.
Whether you’re installing solar panels for your home or business, the ITC is available to you through 2032, giving you plenty of time to plan your project and reap the benefits.
Here’s how the savings break down: if you invest $20,000 in a solar system, you’ll receive a $6,000 credit on your next tax return. That’s real money coming back to you, not just a deduction.
For Ohio homeowners, this can lead to significant savings. The average cost of a 6-kilowatt solar system in Ohio is around $17,880. With the ITC, that price drops to about $12,516 after the tax credit is applied.
Keep in mind, this is a credit, which means it directly reduces your tax bill dollar-for-dollar. To claim it, simply file IRS Form 5695 with your tax return, and be sure to hold onto your receipts and installation contracts for documentation.
The ITC covers more than just your solar panels, too. You can apply the credit to:
- Solar panels
- Inverters
- Mounting equipment
- Labor costs
- Energy storage devices (like solar batteries)
The sooner you take advantage of the ITC, the better. Starting in 2033, the credit will drop to 26%, and by 2034, it will lower again to 22%. So, if you’re thinking about going solar, now is the perfect time to make your move and maximize your savings.
Net Metering in Ohio
Net metering is a great way for Ohio homeowners with solar panels to make the most of their investment. It allows you to send any excess energy your solar system generates back to the grid, and in return, you receive credits on your energy bill. This not only lowers your electricity costs but also helps increase your energy independence.
Recently, Ohio’s net metering policies have changed, giving homeowners new opportunities to earn credits for the surplus energy their solar panels produce. While the credit rates have shifted, the Solar Energy Industries Association suggests that you can still benefit from net metering by ensuring your solar system is sized to meet your energy needs.
Many utility companies across Ohio offer net metering programs, but it’s important to note that the credit rates might not be the same as the full retail price of electricity.
Here are some key benefits of net metering:
- Lower electric bills
- Increased energy independence
- Support for the grid during peak demand
- The potential to earn energy credits
To get the most out of net metering, it’s a good idea to understand your home’s energy usage patterns. A well-sized system that generates just enough power to meet your needs can help maximize your savings.
Keep in mind that net metering rules can vary by utility company, so it’s important to check with your provider to learn the specifics of their program.
By understanding how net metering works, you can make informed decisions about going solar in Ohio, reducing costs while gaining more control over your energy use. It’s a smart way to boost both your financial savings and your energy independence.
How Much Do Solar Panels Cost in Ohio?
The cost of solar panels in Ohio has become more affordable, making it a great time to invest in clean energy. On average, you’ll spend between $15,000 and $25,000 for a typical home installation, though the exact price depends on the size of your system and your specific energy needs.
Here’s a quick breakdown by system size:
- 6 kW system: $15,360 – $20,460
- 8 kW system: $20,480 – $27,280
- 10 kW system: $25,600 – $34,100
These figures are before applying any available incentives, which can make a big difference. Ohio offers several solar incentives that can significantly reduce your costs.
It’s important to note that prices can vary depending on your location within Ohio. Factors like your roof type, the quality of equipment you choose, and competition among installers can influence the final cost. To get the best deal, it’s a good idea to compare quotes from multiple solar installers.
While the upfront cost of solar panels may seem high, think of them as a long-term investment. Over time, your system can lead to significant savings on your energy bills, helping you recoup your initial investment and more.
Is It Worth Going Solar in Ohio?
If you’re thinking about going solar in Ohio, the answer is a resounding yes. It’s a smart move both for your wallet and the environment. Not only can you save money on your electric bills, but you can also increase the value of your home in the process.
In Ohio, the average solar panel system pays for itself in about 9 to 12 years. After that, you’ll enjoy nearly free electricity for decades, which adds up to significant savings. Over a 20-year span, you could save anywhere from $15,000 to $25,000 on energy costs. That’s a substantial amount of savings in your pocket.
Going solar also reduces your carbon footprint. By installing solar panels, you’ll cut your household CO2 emissions by about 3 to 4 tons per year, making a meaningful impact on the environment.
The average cost for a 6-kilowatt solar system in Ohio is around $17,880. But with the Federal Solar Tax Credit, which reduces your cost by 30%, your final price could be closer to $12,516. Plus, Ohio offers net metering, which lets you sell any excess energy your system produces back to the grid, further lowering your energy bills.
Another advantage is protection from rising utility rates. As energy prices increase, the value of your solar savings grows as well. Additionally, homes with solar panels typically see an increase in resale value, with buyers willing to pay more for energy-efficient properties.
With plenty of sunshine, solid incentives, and long-term savings, going solar in Ohio just makes sense. You’ll save money, help the environment, and safeguard yourself from rising energy costs while adding value to your property.
Ready to explore solar for your home or business? Contact Sunsoaked Solar today. Their experts can guide you through the process and maximize your savings. Don’t miss out on these great solar incentives – start your solar journey now!
FAQs About Ohio Solar Incentives
What is the payback period for solar in Ohio?
The typical payback period for solar panels in Ohio is around 10 to 12 years, though your exact timeline will depend on factors like the size of your system and your energy consumption.
The 30% Federal Solar Tax Credit can significantly shorten this payback period. Additionally, net metering and local incentives can further accelerate your return on investment.
For example, if you install an 8-kilowatt system that costs around $24,000, you could save about $2,400 annually on your electricity bills. That would mean you’re looking at a payback period of roughly 10 years. After that, you’ll essentially be generating free electricity for the remaining lifespan of your system, which could last 20 years or more.
Can you get free solar panels in Ohio?
While completely free solar panels aren’t available in Ohio, there are options to lower your upfront costs. Some companies offer “no money down” solar leases or Power Purchase Agreements (PPAs), which allow you to install solar without an initial investment. However, keep in mind that with these agreements, you won’t own the system, and you might miss out on some incentives like tax credits.
For better long-term savings, purchasing your solar system outright or through a solar loan is often a smarter choice. This way, you’ll own the panels, take full advantage of tax credits, and maximize your savings over the lifetime of the system.
Do solar panels increase property taxes in Ohio?
Installing solar panels can boost your home’s value, but it doesn’t necessarily mean you’ll pay higher property taxes. Many cities in Ohio offer property tax abatements for solar installations, so you can enjoy the increased value without an additional tax burden.
For instance, both Cleveland and Cincinnati offer up to 15 years of property tax abatement on the added value from solar panels. This allows you to benefit from increased home value without worrying about higher taxes.
Check with your local government to see if similar programs are available in your area. Some counties may also offer reduced-interest loans as an alternative to tax abatements.
What cities in Ohio offer local solar incentives?
Several cities in Ohio have local programs designed to encourage solar adoption. In Cleveland, homeowners can take advantage of a 15-year property tax abatement on the increased value from solar installations. Cincinnati offers a similar incentive for homes that meet LEED certification standards for eco-friendly projects.
Hamilton County provides low-interest loans for solar installations and other home energy improvements, making it easier to finance your solar project.
Be sure to check with your city or county government for any local solar incentives. New programs are regularly introduced as more communities adopt renewable energy.