Your Complete Guide to Ohio Solar Incentives in 2025
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 2025. Solar panels last 25+ years and can save you money on your electric bills for decades.
Rooftop solar panels also qualify for incentives that can reduce your installation costs and help you save even more with solar. In this guide, we break down the best residential solar incentives in Ohio for 2025 to help you go solar for less.
Ohio Solar Incentives: What’s Available in 2025?
Federal Solar Tax Credit
The solar tax credit (also known as the Investment Tax Credit or ITC) is the best solar incentive available in Ohio. It’s a federal incentive that can save you thousands of dollars on your solar panel and battery storage installation costs.
How the Solar Tax Credit Works
The tax credit is worth 30% of your total solar costs 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.
Solar Renewable Energy Credits (SRECs)
Several states, including Ohio, have regulations called renewable portfolio standards (RPS) that require utility companies to generate a percentage of their electricity using renewable sources, like solar. But they don’t have to generate it all themselves. They can also meet their RPS requirements by purchasing SRECs from solar panel owners.
When you install solar panels in Ohio, you’ll earn one SREC for every 1,000 kWh of electricity your system generates, and you can sell them for cash. Typically, homeowners utilize aggregators that purchase SRECs and sell them to utilities. Their value fluctuates based on supply and demand, and they’re currently worth about $3 each in Ohio.
Solar Net Metering in Ohio
Net metering is a billing arrangement between you and your utility company. It allows solar customers to sell the excess power they generate to their utility in exchange for credits, which you can use to buy electricity from the grid. 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 offset the electricity used 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.
Is Net Metering Going Away in Ohio?
Net metering is still available in Ohio in 2025, but it may not be around forever. In 2022, the Public Utilities Commission (CPU) approved new net metering rules that reduced compensation rates for solar customers. The state may continue to chip away at net metering—significant changes are already underway in nearby states, like Kentucky. We suggest locking yourself into 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.
Solar for All
The Solar for All program is a federal initiative funded under the Inflation Reduction Act (IRA) and administered by the Environmental Protection Agency (EPA) to make solar energy more accessible and affordable for low- and moderate-income households across the United States.
The Ohio Air Quality Development Authority (OAQDA) and Ohio Environmental Protection Agency were chosen to administer the Solar for All program in Ohio and have received $156 million in funding that they’ll use to provide grants and low-cost financing opportunities to underserved communities throughout the state.
The program is still being developed, but we hope incentives will be available soon. We’ll provide an update as soon as we know more!
Solar Sales & Property Tax Exemptions in Ohio
Solar energy systems are exempt from sales tax in Ohio, bringing the initial cost down for homeowners. They’re also exempt from property tax assessments in Cincinnati and Cleveland thanks to their Residential Property Tax Abatement programs.
Get Help Navigating Solar Incentives in Ohio
There are a lot of solar incentives available, which is great for savings, but it can also be confusing. Sustainergy Cooperative can help you navigate the incentive process to maximize your savings. We’re a local, worker-owned Cincinnati solar company that’s committed to saving homeowners money. We offer free, no-obligation consultations to help you learn more about solar power, financing, and incentive opportunities.
