Can You Really Get Free Solar Panels in Ohio?
One of the biggest myths about rooftop solar panels is that the government will give them to you for free. We wish this were true, but unfortunately, no one is giving out free solar panels.
There are, however, several legitimate solar incentives available in Ohio. They aren’t quite as good as free solar panels, but they can bring your installation costs down significantly, making home solar a more viable option.
In this guide, we explain what’s up with all those free solar panel ads you’ve been seeing lately and share the best ways to save on solar with real incentives.
Free Solar Panels are a Scam
If you can’t get rooftop solar panels for free, why are there so many ads that say you can?
Most companies that claim to install solar panels for free are trying to sign people up for predatory loans that come with high interest rates, expensive fees, and unfavorable terms. Predatory lenders use aggressive sales tactics—like promising free solar panels—to coerce borrowers. Other free solar panel ads are concealed attempts to collect your personal data by promising a too-good-to-be-true offer.
Some of the confusion, however, stems from solar incentives like the solar tax credit and Ohio’s new Solar for All program. These are legitimate government incentives that reduce your solar installation costs but don’t cover them entirely.
Real Solar Incentives
The Federal Solar Tax Credit
The solar tax credit is a federal solar incentive that has been in effect since 2006. It’s recently gotten a lot of attention thanks to the Inflation Reduction Act, which expanded and extended the tax credit. The tax credit is not a direct payment or a discount on solar panels. It’s a credit that reduces what you owe in federal income tax by 30% of your solar installation costs.
How the Solar Tax Credit Works
The solar tax credit reduces your federal income tax liability by 30% of your solar installation costs for the year you install your solar panel system.
If you spend $10,000 on a solar panel installation, you’re eligible to receive a tax credit worth $3,000. When you file your tax return, you can claim your credit, reducing what you owe by $3,000 and essentially saves you 30% on your solar installation costs. If your credit is worth more than you owe, you can roll the reminder into the following year.
Learn more about the solar tax credit with our Guide to Ohio Solar Incentives and Tax Credits.
Solar for All
Solar for All is a new residential solar incentive program in Ohio. It’s funded by the US Environmental Protection Agency's federal Solar for All program, which granted $156 million to the Ohio Air Quality Development Authority (OAQDA) and Ohio Environmental Protection Agency, which will manage the program. The Solar for All program will provide grants and low-cost financing for residential and community solar energy projects in disadvantaged areas of Ohio.
More Ways to Save on Solar Panels
Tax credits and low-interest loans aren’t the only way to save on solar panels.
Make Energy Efficiency Upgrades First
Reducing your home’s overall energy consumption is the first step you should take when planning for a solar panel installation. The more electricity your house consumes, the more solar panels you will need and the more expensive your system will be. By making energy efficiency improvements first, you can reduce the amount of power you need, and therefore the number of solar panels you need.
Sustainergy Cooperative combines energy efficiency and solar with our Smart Solar approach. Our goal is to make the low-cost, high-impact upgrades before installing solar panels so you can cover your electricity needs with a smaller, more affordable system.
Some of the best energy efficiency upgrades to make before going solar include:
Sell Power to Your Utility Company with Net Metering
Net metering won’t reduce the upfront cost of your solar installation, but it can help you save more money with solar panels. Net metering is a billing agreement between you and your utility company that allows you to “sell” the excess power your solar panels produce to the grid. In return, you’ll receive a credit to your account that you can use to offset the cost of electricity you buy from the grid when your solar panels are not producing power—at night, for example.
Net metering is, unfortunately, not available everywhere. In Ohio, investor-owned utility companies are required to offer net metering, but municipal electric utilities and rural electric cooperatives are allowed to create their own net-metering rules and may or may not offer a net metering program.
