Ohio Solar Rebates, Incentives, and Tax Credits

Net-metering

Net-metering is offered to Ohio Residents through the following utilities: AEP Ohio (Columbus Southern Power Company and Ohio Power Company), Dayton Power & LightDuke Energy OhioFirstEnergy (Cleveland Electric & Illuminating, Ohio Edison and Toledo Edison). Details:
  • NEG (Net Excess Generation) can be carried over to the next billing period.
  • At the end of the year, if you produced more electricity than you used, you may also request in writing a refund for the difference.
  • More information here.

 

PACE Financing
Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Ohio has authorized certain local governments to establish such programs but not all local governments in Ohio offer PACE financing; contact your local government to find out if it has established a PACE financing program or checkhere for updates.

State Rebates

ODOD – Advanced Energy Program Grants – Residential Solar Photovoltaic Energy Incentive – $3.00/Watt DC installed capacity; Maximum Incentive is $25,000 per residence.

  • System must be grid-tied and metered; work must be performed by an eligible installer;
  • Equipment must be new and UL-listed; all equipment must come with a manufacturer’s warranty and custom components must have a five-year warranty from installer;

Local Loan Programs

Utility Rebate Programs – Not for solar

Example

Location
Cincinnati, Ohio
Av. Monthly Electricity Bill$123
Annual Electricity Usage13,200 kWh
Av. Cost of Electricity$0.11/kWh
System Size7 kW
Electricity Generated8,585 kWh
% Reduction in Electricity Bill65
Cost / Watt (installed)$7.00
Cost Breakdown
Total Cost$49,000
Rebates
State Rebate$21,000
Federal Tax Incentive$8.400
NET COST$19,600
Cash Flow
New Av. Monthly Electric Bill$42
Monthly Loan Payment (30 year, 6%, 0 down)$117
Tax Saving$37*
NEW MONTHLY NET COST$122
Environmental Benefits
Greenhouse Gas (CO2) Saved:
over 25-year system life
176 tons
* Tax savings will decrease as the principal is paid down. Please consult your tax preparer.

Basically in this scenario you will replace your monthly payment to your utility company with an equal payment divided between a home equity loan and a reduced electricity bill. The difference being in the years to come your utility company will increase the electricity rates whereas the payment on your home equity loan will stay more or less the same. If you want to find out if solar will work for you then fill out our quick and easy form and have we’ll have local Ohio solar installers contact you to answer all your questions and provide you will tailored quotes.