Ohio, famously known for its diverse weather patterns, surprisingly basks in the beaming sun for around 178 days yearly. This sunny disposition presents a golden opportunity for homeowners and businesses alike to harness solar energy, making the Buckeye State an ideal candidate for home solar investments. Welcome to your comprehensive 2024 Guide to Ohio Tax Credits, Incentives, and Rebates, where we illuminate the path to savings and sustainability through Ohio's generous solar incentives. Whether you're a long-time resident or a new arrival, this guide will help you navigate the financial benefits of going green in Ohio. Cost of Home Solar Power in Ohio So, how much does a typical 5 kW solar system in Ohio? According to EnergySage, According to Energy Sage, installing a 5 kW solar panel system in Ohio typically costs around $13,498 before you factor in any financial incentives. As of April 2024, the average solar panel system costs $2.70/W, including installation in Ohio The 30% federal tax credit can significantly reduce the upfront cost of solar panels. Scaling up from a 5 kW system to a 10 kW system roughly doubles the cost. This means a 10 kW system in Ohio would cost around $27,000 before applying the federal tax credit. Ohio Incentives & Loans Solar Renewable Energy Credits (SRECs) Incentive value: Savings vary Frequency: Ongoing/Always on Program: srectrade.com/markets/rps/srec/ohio Owning a solar panel system in Ohio offers a unique financial benefit beyond reduced electricity bills. The state's Solar Renewable Energy Credit (SREC) program incentivizes clean energy production. You'll earn one SREC for each megawatt-hour (MWh) of electricity your panels generate. These credits represent the environmental benefits of your solar power and can be sold to local utilities that are required to meet state renewable portfolio standards (RPS). The value of SRECs fluctuates in the market, but in 2024, they typically ranged from $3 to $12 per MWh. This translates to potential annual earnings of $50 to $100 for most Ohio homeowners, effectively increasing their solar panel systems' return on investment (ROI). Sales Tax Exemption on Solar Equipment Incentive value: Savings vary Frequency: Ongoing Program: development.ohio.gov/state-incentives/qualified-energy-project-tax-exemption Ohio offers a complete exemption on sales tax for solar equipment, including panels, inverters, batteries, and even electric vehicle chargers. This translates to significant savings upfront when you invest in a solar panel system. Consider a typical system costing around $28,710. With Ohio's solar tax exemption, you'd be looking at a tax saving of approximately $1,650. That's right! By switching to solar, you're not only making a positive environmental impact, but you're also putting more money back in your pocket. Ohio State Loan Programs ECO-Link Program in Ohio The ECO Link Program cuts loan interest rates by up to 3% for solar projects. Get a 3% reduction on 5-year loans under $25,000 or 7-year loans between $25,000 and $50,000. ECO-Link makes solar financing more affordable, bringing clean energy within reach for Ohioans. Local Solar Incentives in Ohio Cincinnati & Cleveland Property Tax Exemptions Installing solar can increase your home's value, potentially raising property taxes. These exemptions prevent that sting, making solar more financially attractive. Cleveland Cincinnati homeowners can apply for a tax abatement program via the city's website. This program is designed to avoid hikes in property taxes following home improvement projects. By participating in this program, installing solar panels can boost your home's value without raising your property taxes for a period of up to 15 years. Hamilton County Home Improvement Program Residents of Hamilton County can take advantage of the Home Improvement Program, which offers financing options of up to $50,000 for solar equipment and other energy-efficient home upgrades. With low down payment requirements and competitive interest rates, this initiative aims to enhance accessibility to solar energy. Ohio Property-Assessed Clean Energy (PACE) Financing Ohio offers PACE Financing, a loan option with low upfront costs and attractive rates. However, PACE payments get added to your property tax bill. While convenient, it can make your home less appealing to buyers in the future. Consider PACE only if you plan to stay in your home for a long time (15-20 years). Ohio Net Metering What is Net Metering Whenever your generating equipment produces more electricity than you need, the extra electricity flows backward through the advanced meter on your property, making it turn reverse. This reverse metering is “netted” against your total energy usage for the month in the form of a bill credit, thus lowering your electric bill. Eligibility If you want a net metering billing arrangement, your generating equipment must be interconnected to the local electric utility’s distribution system. You must also use a bidirectional meter capable of registering the flow of electricity in each direction. Credits Net metering credits can be applied to reduce charges in subsequent months and will persistently roll over to future bills. These credits are linked to your existing location and could be forfeited if you move or discontinue service with the electric utility. In Ohio, the electricity you generate is credited at the rate of the electric utility's standard service offer for energy. Customers have the option to select from a variety of net metering programs offered by different competitive providers. Electric utilities are prohibited from levying charges on electricity that is fed back into the grid by customer generators. For more information, visit the Ohio Public Utilities Commission. Federal Rebates Federal Solar Tax Credit The Investment Tax Credit (ITC), also known as the federal solar tax credit, is a nationwide incentive enabling individuals to receive a tax credit for expenses incurred from the installation of solar panels. This credit provides owners of solar systems with a deduction of 30% off the total cost of their system. For instance, purchasing a 10 kilowatt (kW) system at $33,000 means you are eligible for a tax credit of $9,900. How US Solar Supplier Can Help You Save on Your Next Project Let US Solar Supplier guide your solar energy project! Consult with us today to find the perfect system to meet your needs. Resource Section Ohio Net Metering https://www.occ.ohio.gov/factsheet/smart-grid
