Are Solar Panels Worth It in Ohio?

5 factors to consider before getting solar panels in Ohio

1. Solar panel installation costs

2. Your energy consumption

3. How long you stay in your house

4. Ohio solar incentives

5. How you pay

1. Solar panel installation costs

Average solar panel costs in Ohio are comparable to the national average. On the low end, a 5-kW system costs $13,050. That doesn’t include a solar battery, which can add $7,000 to $18,000 to your total system costs.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Ohio, the average cost per watt is only $2.61.

Ohio's solar panel costs by system size

2. Your current energy consumption

Look at your latest utility bills to see how much electricity your house needs each month. This tells you what size and capacity your solar system needs to be.

A typical Ohio household needs a 12.72 kW system to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

How to estimate what system size you need

Find your annual electricity use in kWh on your utility bill and divide by 1,200. For example, 12,000 kWh per year ÷ 1,200 = about a 10-kW solar system.

Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself. In Ohio, solar panels usually pay for themselves within 9.1 years.

3. How long you stay in your house

Solar panel installations are expensive, and it takes a while for electric bill savings to make up for the initial cost — typically 9.1 years in Ohio. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

It’s true that solar panels can increase the value of your home. But they can also complicate a sale. This is especially true if you lease your system, since the buyer may need to take over the contract.

If you think you’ll move in the next couple of years, you may want to consider a home improvement project with a better return on investment, like a kitchen or bathroom remodel.

4. Ohio solar incentives

The 30% federal solar tax credit has expired, and Ohio doesn’t have many statewide solar incentives. But there are still a few ways to save:

• Property tax break: Adding a qualifying solar system generally won’t raise your property taxes.

• SRECs: Your panels may earn a little extra money based on how much electricity they produce.

• Local programs: Some cities and counties offer tax breaks, low-interest loans or other financing for solar projects.

What to know about net metering in Ohio

Net metering lets you get bill credits for extra solar power you send to the grid. In Ohio, that credit isn’t necessarily the same as the full price you pay for electricity.

Rules can be different for municipal utilities and electric co-ops (so check with your provider before estimating your savings), but in general:

• AEP Ohio: Extra power earns a dollar credit that carries forward to future bills. You can request a refund in writing for no more than 12 months of built-up credits.

• AES Ohio: Extra power earns a credit based on the Standard Offer Rate. Remaining credits roll to the next bill, but AES says it does not issue a check for excess power.

• Ohio Edison, Toledo Edison and The Illuminating Company: Credits can carry forward, and customers can request a refund in writing for up to 12 months of accumulated credits.

Real-world example

Bryan in Grove City went solar about two years ago. “Usually, I get a bill. It starts back up around winter, but credits will build back up right around September. Then about six months, my electric bill from AEP is zero,” he wrote in a review. “I’m still paying off the panels themselves so it’s not fully paying for itself yet until they're paid off, but it definitely makes a difference on the electric bill.” 

Did you know?

Systems generally must be sized at no more than 120% of your electricity needs at the time of interconnection to qualify under the state net-metering rules.

» MORE: Solar incentives in Ohio

5. How you pay

It can be financially strategic to pay for the whole thing upfront. You own the system from day one and you don’t have to pay interest on a loan. Of course, paying cash is not always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreements are similar to leases. You sign a long-term contract with a solar services provider to purchase the electricity generated by the panels at a predetermined rate. The provider owns and maintains the panels throughout the agreement, which usually lasts 10 to 25 years.

» SOLAR PANELS: Lease vs. buy

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support a solar panel installation. Here’s what to think about before you commit:

• How old are my appliances? The first step is to ensure that your electrical loads are as small as possible. If you have an older refrigerator or air conditioning unit, for instance, it’s smart to upgrade those before investing in solar panels. That way, you can get a smaller system, which will be cheaper overall.
• How much sunlight I you get? Solar panels need regular exposure to sunlight to produce the most energy possible. Ohio averages three to five peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of my roof? Ohio (and the rest of the United States) is in the northern hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels again.

Pros and cons of solar panels in Ohio

In the best-case scenario, it’s easy to make the switch and you’re happy with the system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.

Benefits of solar panels in Ohio

• Cheaper energy bills: The average Ohio household uses quite a bit of electricity, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and often lower). It also protects you from future energy cost increases.

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

• Higher home resale value: Installing solar panels can increase a home’s value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

• More energy independence: Some homeowners pair solar with battery storage for more energy independence and backup power during outages.

Drawbacks of solar panels in Ohio

• Solar equipment is expensive: Solar panel prices typically start between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Grid-tied systems need battery storage or another backup setup to keep powering a home during an outage.

• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.

• Could make your house harder to sell: Solar panels can make a home harder to sell if they’re leased or financed, since the buyer may have to take over the agreement. Some buyers may also worry about roof repairs, maintenance or whether the system will actually save them money.

• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Ohio

If you’re ready to go solar, the company you hire also matters.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered.

That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use NLR’s PVWatts Calculator to estimate how much electricity a solar system can produce over a year on your house.

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for the top solar companies in Ohio to learn more.

Ohio solar FAQ

Bottom line: Is going solar in Ohio worth it for you?

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process. It’s generally worth it if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence. But it doesn’t work out for everyone. Here’s what to consider before making the switch.

Solar costs vs. savings: Ohio and nearby states