Can You Get Free Solar Panels in Ohio?
One of the biggest myths about solar panels is that the government will give them to you for free. We wish this were true, but unfortunately, the government is not giving out free solar panels.
“Free Solar Panels” = Scam
If you can’t get solar panels for free, why are there so many ads that say you can? Plainly put, most companies that promise to install solar panels for free are scams.
In many cases, companies that are offering free solar panels are really 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 the solar tax credit. The solar tax credit is a very real solar incentive that reduces your solar installation costs but doesn’t cover them entirely. The solar tax credit is a legitimate offer from the United States federal government that can help you save money on a solar panel installation.
The Truth About the 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 for the year you install your solar panels. The solar tax credit is worth 30% of your total solar installation costs for solar panel systems that are installed between 2022 and 2032.
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 system.
If you spend $10,000 on a solar panel installation, you will 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! If your credit is worth more than you owe, you can roll the reminder into the following year. The tax credit effectively saves you 30% on your solar installation costs.
Learn more about the solar tax credit with our Guide to Ohio Solar Incentives and Tax Credits!
More Ways to Save on Solar Panels
The federal solar tax credit is the best solar incentive available for Ohio solar panel installation, but it’s not 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. Our background in energy efficiency makes us unique among solar installers and allows us to install the most affordable and efficient solar system possible.
Some of the best energy efficiency upgrades to make before going solar include:
Sell Power to the Grid 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. 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.
