State solar guide
Ohio has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (statewide range; Columbus area approximately 4.54 peak sun hours per day) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Ohio requires investor-owned utilities (AEP Ohio, Duke Energy Ohio, AES Ohio, FirstEnergy subsidiaries) to offer net metering for residential systems up to 25 kW. Self-consumed solar saves at the full retail rate (approximately 13 to 14 cents per kWh for the energy component). Exported surplus earns only the avoided-cost rate, approximately 3.8 to 5.1 cents per kWh depending on utility, per PUCO-approved tariffs. Credits roll forward continuously with no expiration.
AEP Ohio, Duke Energy Ohio, AES Ohio (formerly Dayton Power and Light), Ohio Edison, Cleveland Electric Illuminating, and Toledo Edison (FirstEnergy subsidiaries) each set their own avoided-cost export rates within PUCO guidelines. The hybrid model means self-consumed solar is highly valuable while exports are worth much less. Battery storage improves economics by shifting self-consumption. Source: PUCO utility tariff filings, EcoWatch Ohio 2026.
Program: Ohio Net Metering (self-consumption at full retail; export at avoided cost). Last verified: June 2, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Ohio utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Ohio homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Ohio (ECO-Link) Utility rebate / export credit active | See description (as of 2026-06-02) ECO-Link Program: reduced-rate loans up to $50,000 at 3 percent below market rate for energy upgrades including solar. Available through participating Ohio lenders. | Ohio (ECO-Link) customers. Verify eligibility directly with your utility. | Active | DSIRE (opens in new tab) |
| Ohio Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) Ohio exempts qualifying solar energy systems from real property tax for systems up to 250 kW under Ohio Revised Code 5709.53. Estimated savings vary by county assessed value and local mill rate. | Ohio residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
| Ohio Solar Sales Tax Exemption Sales tax exemption Verify that your specific installation and municipality qualify for the Ohio sales tax exemption. | State sales tax savings on system equipment and installation Ohio provides a sales tax exemption on solar energy equipment purchases under the Ohio Revised Code. Estimated savings approximately $1,150 on a $20,000 system at Ohio's 5.75 percent state sales tax rate. | Ohio homeowners purchasing qualifying solar energy systems. | Active | DSIRE (opens in new tab) |
Data last verified June 2, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Savings example
This example uses real Ohio market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at approximately 11,200 kWh for an 8 kW system at 4.54 peak sun hours. Assumes 75 percent self-consumption at 17.52 cents per kWh full retail value; remaining 25 percent exported at approximately 4.5 cents per kWh avoided-cost rate. Utility rate escalation at 3 percent annually. SREC income included but minimal at $3 per MWh. Federal residential credit: $0 (expired). Figures are illustrative; your in-home assessment will use your actual bills and current PUCO-approved avoided-cost rate for your utility.
Ohio homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Ohio does not have a statewide solar permit fee cap. Permit requirements vary by municipality and county. Columbus, Cleveland, Cincinnati, and Toledo each have separate building departments with different processes. Typical residential solar permit approval takes 2 to 6 weeks. SolarAPP+ adoption in Ohio is limited. Contract to energization typically runs 10 to 16 weeks statewide.
Utility interconnection review with AEP Ohio, Duke Energy Ohio, or FirstEnergy is separate from the building permit and typically adds 4 to 8 weeks. Verify current interconnection queue times with your utility before signing a contract.
Commercial solar in Ohio
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Ohio business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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