Cost of solar panels in Ohio (2025)

How much do solar panels cost in Ohio?

With professional installation, a typical 6-kilowatt residential solar panel system in Ohio costs $15,725. That doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence and essential if you go off-grid. On the high end, Brian in Rocky River said he spent $65,000 on his system.

Average solar panel cost by system size in Ohio

The size of your solar panel system is a big factor in your overall solar costs. A typical Ohio household needs a system with a capacity of 7.2 kW to offset enough energy costs to make solar viable. Depending on your household energy usage, you might need a smaller or larger system.

Are solar panels worth it in Ohio?

Solar panels offer substantial long-term financial benefits for Ohio homeowners. The state's combination of decent sunlight, supportive policies and rising electricity costs creates favorable conditions for solar investments. In fact, Ohio ranks among the best states for solar panels.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Many Buckeyes seem to think solar is worth it. For instance, Michelle in Westerville bought a solar system for her dad. “He's very much into saving energy and keeping his bills low,” she told us. Similarly, Michael in Clearwater said, “Since getting the solar panels installed, we've gotten cheaper bills. They're saving us money, and I'm satisfied.”

If your house is a good candidate, solar is worth considering if you like the idea of lower monthly utility bills and more energy independence. We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Payback period and return on investment

In Ohio, solar panels usually pay for themselves within 8.17 years. Over 25 years, homeowners with solar panels avoid $53,812 in utility costs on average.

It's important to understand that solar panels rarely eliminate your electricity bill entirely. However, homeowners consistently report significantly lower monthly payments compared to their pre-solar costs. The combination of reduced bills and increased energy independence makes solar an attractive option for many Ohio households.

» STILL NOT SURE? Solar energy pros and cons

Ohio net metering and utility policies

When your solar system generates excess energy beyond your needs, you can sell it to your local electricity provider. Selling excess solar electricity is known as net metering. In Ohio, homeowners receive compensation for their additional power through credits on their electricity bills.

How net billing credits work

In Ohio, investor‑owned utilities (such as AEP, Duke Energy, FirstEnergy and Dayton Power & Light) are required by state law to offer net metering programs to customers. Municipal utilities and electric cooperatives may offer similar programs, but they aren’t obligated by state law.

Excess generation credits roll forward month to month. They appear on your utility bill and reduce future charges. If you move or stop service with that utility, any accumulated credits will be lost. They are tied to the original service location.

Ohio SRECs and local incentives

In Ohio, you earn one Solar Renewable Energy Credit (SREC) for every 1,000 kWh your solar system produces. These SRECs can be sold to utilities to help them meet state renewable energy targets, though current prices are low, typically between $3 and $9 each. Most solar owners work with SREC aggregators to manage registration and sales. While SREC income is modest, it provides a small financial bonus on top of other solar incentives.

There are relatively few additional statewide Ohio solar incentives for residential projects. You might be eligible for more local programs. For instance, Cincinnati residents can apply for a property tax exemption on whatever value that solar panels add to their homes.

Federal solar investment tax credit (ITC) ending soon

The ITC is now set to expire at the end of the year, much earlier than previously scheduled. The credit was expected to drop gradually, then fully expire in 2035 — but those future step-downs have been eliminated under the One Big Beautiful Bill Act, signed in July of 2025. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.

» MORE: How the federal solar tax credit works

Solar panel installation cost factors in Ohio

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. Monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference between monocrystalline and polycrystalline panels comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Solar panel efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy are, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

Additional solar equipment costs

Systems also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: Battery storage lets you save energy for later use. Solar battery prices depend on the battery’s capacity, life span, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, a standalone system costs $80 to $400.

Size of your system

The cost difference between a 6-kilowatt system and a 7-kilowatt system is thousands of dollars. To estimate what size system you need, first look up how many kilowatt-hours (kWh) you used last year on your electricity bill. Divide that number by 1,200. This will be roughly the system size you need. For example, if your home used 20,000 kWh last year, you would need approximately a 16.7-kW system.

» WATT’S THE DIFFERENCE? kW vs. kWh

Condition of your roof

Getting your roof replaced before going solar could add to your overall installation costs. Considering solar panels typically last 25 to 30 years, your roof must be ready for that long-term commitment. If not, you could face additional costs: removing the panels, repairing or replacing the roof and reinstalling the panels.

Labor costs

The cost of hiring professionals to install your solar system varies based on project size and complexity. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the do-it-yourself route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

» MORE: Pros and cons of DIY solar panels

Local permits and fees

You will need building permits, zoning and electrical work. If your home has historical status, you may need additional permits. The flat fees are $20 each for the plan review and zoning permits. However, the building and electrical permits have variable costs depending on the size and price of the solar system. For altering an existing home, the building permit fee is $5 for every $1,000 of project cost. For a new solar structure, it's $10 per $1,000, with a $30 minimum. The electric permit is $50 per 1,000 square feet.

How can I pay for solar panels in Ohio?

You have options when it comes to paying for your solar system. You can pay cash upfront, take out a solar loan, lease your system or get a PPA.

Solar loans

A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan interest rates are relatively low, and terms typically last eight to 20 years.

Leases and power purchase agreements

Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.

A solar power purchase agreement (PPA) is similar to leasing. A solar developer buys, installs and maintains solar panels on your property. You buy the power generated by the system on a per kilowatt-hour (kWh) basis. It’s a fixed price, and the cents/kWh is usually cheaper than the utility’s rate for the same amount of electricity.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Ohio

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Ohio.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Ohio homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Ohio and other states.

Solar costs and savings: Ohio and nearby states