Guide to Ohio Solar Incentives & Tax Credits in 2024
If you’re looking for a home upgrade that provides long-term financial benefits and years of energy savings, solar panel installation should be at the top of your list for 2024. Solar panels last 25+ years and can save you money on your electric bills for decades.
Solar installations also qualify for incentives that can reduce your installation costs and help you save even more with solar. Sustainergy Cooperative is a locally owned and operated Ohio solar company. We stay on top of the solar incentives Ohio homeowners are eligible for so our customers don’t miss out on any opportunity to save.
Ohio Solar Incentives 2024
Here’s a breakdown of the best solar incentives available to Ohio homeowners in 2024.
Federal Solar Tax Credit
The federal solar tax credit (also known as the Investment Tax Credit or ITC) can save you thousands on your solar panel installation and battery storage costs. The tax credit is worth 30% of your total solar costs with no annual limit and is applied to your federal income taxes for the year your solar system is installed. If your credit is worth more than you owe, you can roll the remainder over to the following year.
As of January 1, 2023, the solar tax credit can be claimed by nonprofits, places of worship, and other tax-exempt entities. Instead of a credit on their taxes, these organizations will receive a direct payment for 30% of their total solar energy system installation costs.
Solar Renewable Energy Credits (SRECs)
When you install solar panels in Ohio, you’ll earn one solar renewable energy credit for every 1,000 kWh of electricity your system generates. Utilities and other organizations that are required to generate a portion of their electricity with renewable energy sources buy SRECs to meet their requirements. You can sell your SRECs for cash on an open marketplace.
Solar Net Metering in Ohio
Net metering is a billing arrangement between you and your utility company. It allows customers who produce their own electricity with solar panels and sell the excess power to the utility in exchange for a credit on their bill. In the summer, when the days are long, your solar panels will generate a surplus of electricity, allowing you to build up substantial credits. In the winter when the days are short and there is less sunlight, you can use your credit to buy electricity from the grid.
Investor-owned utilities in Ohio are required to offer net metering. However, they do not have to buy your electricity back at the full retail rate. Competitive retail electric service (CRES) providers are not required to offer net metering, but several do. Some CRES providers offer higher net metering rates than investor-owned utilities.
In Kentucky, Duke Energy is considering making drastic changes to their net metering agreements— either by reducing the buyback rates or eliminating the program altogether. We suggest locking yourself in to a rate with your electricity provider as soon as possible to avoid lower rates or miss out on the opportunity to sell your electricity back to the grid.
Sustainergy Cooperative: Your Ohio Solar Incentive Experts
Sustainergy Cooperative is a local, worker-owned Cincinnati solar company that’s committed to saving homeowners money. We can help you maximize your solar savings with incentives that reduce your upfront installation costs and help you save more with solar over time.
As a worker-owned company, we provide a higher level of service and will stop at nothing to ensure you are satisfied with your project. Our technicians are worker-owners, which means that your success is their success! They will put their all into your solar installation to ensure the highest level of quality and performance.
