Residential solar incentives in Ohio
Ohio has relatively few statewide solar incentives. However, local governments can set up special energy improvement districts. Property owners in those areas can get funding to install solar panels or other similar energy systems on their land. The exact terms and details can vary depending on the specific locality.
- Qualified Energy Property Tax Exemption: This is probably the most useful incentive for homeowners. It generally keeps a qualifying solar installation from increasing your property tax assessment. Most home solar systems are far below the 250-kW limit.
- Solar Renewable Energy Certificates (SRECs): Your system earns one SREC for every megawatt-hour of electricity it produces. You can sell those certificates, often through an aggregator, to utilities that need them to meet renewable energy requirements. In Ohio, they typically provide only a small amount of extra income.
- City of Cincinnati property tax abatement for green buildings: Cincinnati homeowners may qualify for a temporary tax break on the added property value from solar and other green upgrades. The program is not limited to solar, but solar projects may qualify.
- Hamilton County Home Improvement Program: Hamilton County homeowners may be able to get a low-interest loan for eligible home improvements, including certain energy upgrades and solar projects.
- Special Energy Improvement Districts: Ohio law allows local governments to create property-assessed clean energy (PACE) financing districts. In participating areas, homeowners may be able to finance solar through an assessment added to their property tax bill instead of taking out a traditional loan. Availability depends on whether your city or county offers the program.
Federal solar programs
The 30% federal solar investment tax credit (ITC) expired at the end of 2025, but you may still qualify for one of the following programs.
- Residential Energy Conservation Subsidy Exclusion: This isn’t a direct payment. It’s a tax rule that generally lets you exclude utility rebates or subsidies for energy-saving improvements, including some solar programs, from your taxable income.
- Energy-Efficient Mortgages: These mortgages may let you include the cost of solar panels or other energy upgrades in your home loan, based on the savings the improvements are expected to provide.
- Fannie Mae Green Financing: This financing is mainly designed for multifamily properties and developers, so it is less relevant to most single-family homeowners. However, it may apply to some larger residential projects.
What to know about net metering in Ohio
Net metering lets homeowners with solar panels sell any excess electricity they generate to their local power grid. In Ohio, you can get in on net metering as long as your setup meets a few requirements.
Your system has to use approved renewable resources like solar, mainly to offset your electricity use. It must be on your own property and connected to the power grid. Customers of competitive retail electric providers can sign up for net metering if they have an interconnection agreement with their utility. Rural co-ops and municipal utilities in Ohio can offer net metering if they want to, and they may do so without having to. Contact your local utility to apply.
How much are solar panels in Ohio?
Before considering the federal solar tax credit, solar panel costs in Ohio typically range from $13,916 to $27,832. Your system size greatly affects how much you pay overall. The typical system size for solar systems in Ohio is 7.2 kW (kilowatts).
How do you know if the average size system is enough for your home or if you need a bigger one? Check the amount of electricity you used last year in kilowatt-hours (kWh). You’ll find this information in your electric account dashboard online. Then, divide your annual kWh by 1,200 to find the system size you need. For example, if your home used 15,000 kWh last year, you would need a 13-kW system.
Average solar cost by system size in Ohio
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide average | $9,548 | $11,458 | $13,367 | $15,277 | $17,186 | $19,096 |
| Akron | $13,732 | $16,478 | $19,224 | $21,971 | $24,717 | $27,463 |
| Cincinnati | $13,963 | $16,756 | $19,548 | $22,341 | $25,133 | $27,926 |
| Cleveland | $14,060 | $16,872 | $19,684 | $22,495 | $25,307 | $28,119 |
| Dayton | $13,933 | $16,720 | $19,506 | $22,293 | $25,079 | $27,866 |
Author’s note
The table above doesn’t include the cost of a solar storage battery. Solar batteries are sometimes as expensive as the panels — $7,000 to $18,000. Solar batteries are a must if you want real energy independence and essential if you go off-grid.
Find solar companies in Ohio
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Ohio’s top solar companies to learn more.
| Company | Customer rating | Professional installation | Payment options | Year founded | |
|---|---|---|---|---|---|
 Blue Raven Solar | Learn More | 3.2 |  | Cash, loan, lease, PPA | 2014 |
 Project Solar | Learn More | 3.9 | | Cash, loan | 2020 |
 CleanChoice Energy | Learn More | 1.4 |  | Varies | 2012 |
 ShopSolar | Learn More | 4.5 | | Cash, loan | 2018 |
FAQ
Can I get solar panels for free in Ohio?
There are no programs for free solar panels in Ohio. You can lease solar equipment or enter a power purchase agreement (PPA) with little to no upfront costs. Neither is free, however. Solar leases generally require a flat monthly fee; PPAs make you pay per unit of electricity.
» FREE SOLAR PANELS: Are they really free?
Is my HOA allowed to restrict solar panels?
Homeowners associations may restrict solar panels to an extent. According to Senate Bill 61, which went into effect in 2022, HOAs “may establish reasonable restrictions concerning the size, place and manner of placement of solar energy collection devices.”
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of getting a lease or power purchase agreement.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Ohio?
On average, Ohio homeowners with solar panels avoid $48,647 in utility costs over 25 years. Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Knowing your average energy consumption helps determine the size and capacity of the solar system you need. Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself.
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
Bottom line
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar. Turns out, it’s worth it for many homeowners, particularly in Ohio. In fact, it is one of the best states for going solar.
Solar costs: Ohio vs. nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Indiana | $17,115 | $28,524 | 8.7 kW | $2.85 | $24,351 |
| Kentucky | $15,771 | $26,285 | 7.3 kW | $2.63 | $18,380 |
| Michigan | $18,279 | $30,465 | 6.5 kW | $3.05 | $26,981 |
| Ohio | $16,699 | $27,832 | 7.2 kW | $2.78 | $48,647 |
| Pennsylvania | $15,802 | $26,336 | 7.8 kW | $2.63 | $65,657 |
| West Virginia | $18,573 | $30,955 | 8.4 kW | $3.10 | $63,643 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, “Ohio Programs.” Accessed July 13, 2026.
- Solar Energy Industries Association, “Ohio.” Accessed July 13, 2026.
- DSIRE, “Net Metering in Ohio.” Accessed July 13, 2026.
- The Ohio Legislature, “Senate Bill 61.” Accessed July 13, 2026.
