Ohio experiences a diverse climate with approximately 175 sunny days annually, providing a moderate amount of sunlight for solar energy initiatives. While it may not have as many sunny days as some other states, Ohio’s weather conditions still present opportunities for viable solar power projects. The state’s residents enjoy multiple tax credits, incentives and rebates for installing solar PV systems. There are federal, state and sometimes local programs they can harness to offset installation costs and get a head start for saving on energy costs. The best part is that they’re not mutually exclusive;
Here are some of the incentives available to Ohio home and business owners:
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Federal Solar Investment Tax Credit (ITC):
Homeowners that qualify for the Solar ITC can take advantage of a tax credit for 30% of the total purchase price of their solar system, no matter the system size or cost. This credit applies to all solar projects that begin construction in 2023 and will last through 2033, at which point it will drop to 26%.
Incentive and Rebates
Ohio does not offer state solar power rebates. However, Ohio has a few incentives to help you go solar: one that pays you for the electricity your panels generate, one that rewards you for that electricity’s clean characteristics, and one to help you finance your new solar energy system. For each megawatt hour (MWh) of electricity your solar panels produce, you will be granted one Solar Renewable Energy Certificate (SREC) that you can sell for extra cash. In 2021, these certificates sold for about $10, meaning an 8 kilowatt system that produces 8 MWh a year could earn you an extra $80 annually. The state has also created the Energy Conservation for Ohioans (ECO-Link) Program to make it less expensive for you to finance your solar energy system. All you have to do is successfully apply for the program and you will receive up to a 3 percent interest rate reduction on your bank loans, for up to seven years.
Renewable Energy Property Tax Exemption:
For any new solar PV system installed in Indiana, the assessed value of the system is exempt from your property taxes. That means that, even though your solar installation adds value to your property, the added value can’t be counted when property is being assessed for taxes.
Ohio Sales Tax Exemption:
When you purchase a solar energy system in Ohio, many of the components are exempt from sales tax under Ohio’s sales tax exemption for electrical generating equipment. According to the law, you don’t have to pay sales tax on your solar modules, racking, and inverters because they are directly involved in the production of electricity.
Net Metering:
Solar energy systems under 1 megawatt (MW) in size are eligible to participate in net metering, which allows you to send your extra electricity back into the grid and get credits on your electric bill. When your panels aren’t producing all the electricity you need, you can use your credits instead of having to pay for electricity from your utility.
Further information and programs can be found at the Programs.Dsireusa.org
