Ohio Solar Panel Incentives: Rebates, Tax Credits and More

Putting in photo voltaic panels can prevent cash by decreasing your vitality prices. However they will make even higher monetary sense should you make the most of tax incentives, rebates and particular financing applications.

For those who’re a home-owner within the state of Ohio, there are a handful of how you’ll be able to shave some {dollars} off the tens of 1000’s of {dollars} that photo voltaic panels — and probably batteries — can value.

“The worth proposition has gotten to be superb since vitality prices general have gone up throughout the nation,” stated Tristan Rader, Ohio director for Photo voltaic United Neighbors. “The extra you are paying for vitality off of the grid, the higher a price proposition is photo voltaic in your roof. You are avoiding plenty of these prices by having a photo voltaic array.”

On this information, we’ll stroll you thru photo voltaic panel incentives, photo voltaic tax credit, photo voltaic panel rebates and loans within the Buckeye State.

 *Estimated worth calculated through the use of a nationwide common of $24,000 for putting in photo voltaic panels, or 8 kW at a nationwide common value of $3 per watt

Federal photo voltaic tax credit score

Expanded and prolonged within the Inflation Discount Act handed in 2022, the residential clear vitality credit score is essentially the most vital tax incentive for US householders desirous to go photo voltaic. It supplies you with a tax credit score price as much as 30% of the full value of putting in photo voltaic panels on your own home.

Ohio photo voltaic tax credit, exemptions and mortgage applications

The Buckeye State has some applications that may assist soften the monetary value of going photo voltaic. Listed here are some we discovered:

Vitality Conservation for Ohioans (ECO-Hyperlink) Program 

This state-supported program provides an incentive for householders in Ohio to decrease the price of varied residence enchancment initiatives, together with people who enhance vitality effectivity. This system provides decrease rates of interest by way of native banks. In flip, you might need a better time financing your own home photo voltaic system. 

Ohio Property-Assessed Clear Vitality (PACE) Financing

The PACE financing program provides an reasonably priced strategy to set up a photo voltaic panel system at your own home. This financing device lets you repay the prices of an vitality enchancment by way of a voluntary evaluation in your property taxes. PACE financing options zero down fee, a hard and fast rate of interest, no private assure and 15- to 25-year financing phrases. 

Photo voltaic Renewable Vitality Credit (SRECs) 

Beneath this program, you’ll be able to obtain credit score for electrical energy your photo voltaic panels generate. For each megawatt-hour (MWh), you obtain a credit score that you may money in. SRECs might be bought by way of third events. The fee per SREC in Ohio varies. 

Native photo voltaic panel incentives in Ohio

Your metropolis, county or group could have its personal applications to encourage photo voltaic panels. Listed here are some examples.

Metropolis of Cincinnati Residential Tax Abatement

Residents of Cincinnati can decrease their taxes to the pre-improvement worth of their property for anyplace from 10 to fifteen years. This is applicable to present residence renovation properties.  Some candy information: this incentive went by way of a considerable revamp in 2023 to prioritize eco-friendly initiatives. 

Cuyahoga County Dwelling Enhancement Mortgage Program (HELP)

Owners in most of Cuyahoga County can obtain a mortgage of as much as $200,000 at a 3 share factors beneath market fee to make enhancements on eligible properties. 

Franklin County Dwelling Enchancment Program 

In Franklin County, residential property house owners could be eligible for a property tax exemption on their residence photo voltaic undertaking. The phrases, such because the variety of years the abatement stretches for and the share abated, differ. 

Hamilton County Dwelling Enchancment Program (HIP) 

Hamilton County residents could also be eligible for five-year loans at 3 share factors beneath market fee for residence enhancements. These loans are capped at $50,000, however there are not any earnings restrictions or limits. You simply want to fulfill the companion financial institution’s lending standards. 

Ohio internet metering guidelines for photo voltaic vitality

Internet metering is out there should you stay in Ohio. Owners who produce their very own photo voltaic vitality on their property can scoop up a credit score on their electrical energy payments for extra vitality that goes again into the electrical utility’s distribution system — the grid.

In Ohio, if your own home has a photo voltaic vitality system and is related to your native electrical utility’s distribution system, you are eligible to save lots of in your electrical energy invoice. The photo voltaic vitality system on your own home can be utilized to offset half or your entire vitality wants, as much as 120%.

Internet metering credit might be put towards your invoice in future months and may proceed to hold ahead.

Your breakeven level for putting in photo voltaic in your house is earlier should you stack internet metering on high of cash saved on your own home vitality payments. In Ohio, payback durations for photo voltaic installations are usually lower than 10 years due to internet metering, Rader stated.

“You are getting credit within the summertime, and also you’re utilizing these credit within the fall and even wintertime,” he stated. “So you are not seeing a invoice for a great chunk of the yr if in case you have a photo voltaic system that is massive sufficient. Then the web metering system lets you really unfold that out over the yr, which is implausible.”

Group photo voltaic initiatives in Ohio

At the moment, Ohio would not have any group photo voltaic initiatives for its residents. Lawmakers in 2023 launched a invoice that might create a pilot program for group photo voltaic.

“We’re hoping that quickly in Ohio, we may have group photo voltaic and that individuals would be capable of subscribe to those group photo voltaic initiatives throughout the state as soon as we’ve got that rule,” Rader stated. “However proper now, we do not have the regulatory system set as much as enable for group photo voltaic initiatives to exist.”