Are Solar Panels Worth It in Ohio

Are solar panels worth it in Ohio? In the past year, electricity rates in the United States have gone up a lot. But here’s some good news: the cost of solar panels for homes has gone down by 52% in the last 10 years. And there are more incentives available to help you pay for solar panels. 

In 2021, solar power made up 20% of the renewable electricity produced in Ohio. That’s a good thing for the environment. But if you look at all the electricity Ohio used, only 4% came from renewable sources like solar. This doesn’t mean you have to rely on coal or natural gas to power your home.

By switching to solar energy on your roof, you can reduce your carbon footprint. Plus, it’ll save you money on your energy bills. If you make the switch, you might also be able to take advantage of programs that let you sell extra solar power back to the grid, which can save you even more.

Cost of Solar Panels in Ohio

The cost of solar panels in Ohio can vary based on a few factors, like the size of the system you need and the specific equipment you choose. The long-term savings on your energy bills and the positive environmental impact of using solar energy can make the investment in solar panels a smart choice for many homeowners in Ohio.

System size (kW) Price per watt Total cost
5 $3.41 $17,050

How to Pay for Solar Panel Installation in Ohio

You should think about where you’ll get the money to buy your solar panels. The tax credit won’t be available until after you’ve filed your taxes.

You can pay for solar panels in several ways:

Solar Loan

Your Dayton solar installer probably has a connection with a bank or financial institution to offer you a solar loan. This can be a good option, but it’s smart to look at several offers to find the best interest rates and loan terms.

Cash

The easiest way is if you have a lot of money in your bank, like tens or hundreds of thousands of dollars. If you don’t have the money for solar panels yet but plan to get them later, think about saving in a high-yield savings account. Right now, interest rates are quite high, so this will help you save more money.

Personal Loan

Another way to get money is through a personal loan. Personal loans are usually not backed by any collateral, which means your home is safe. They are typically shorter-term and have higher interest rates compared to other home equity options.

If you don’t want to borrow money directly from a solar company, you can use your home’s equity to finance your solar project. Home equity loans, often called HELOCs or home equity lines of credit, are provided by financial institutions. People often use them for home improvements, including solar projects. When considering these loans, make sure to compare different options to find the best deal.

Ohio Solar Panel Rebates and Incentives

Even though solar panel prices have come down, installing them on your house is still a big expense. In Ohio, there are tax credits and incentives that can help make green energy more affordable. One of these is the Residential Clean Energy Credit, a federal tax credit that can give you a 30% discount on the cost of solar systems when you file your taxes. You can get these credits for solar systems purchased from 2022 to 2032.

Ohio also offers additional incentives from the state and local government. Here are some things you should know about these incentives.

Program Description
Energy Conservation for Ohioans You can get home improvement loans at lower interest rates of 3% if your project includes solar systems and energy-efficient upgrades.
Net Metering If your solar system generates extra electricity, you can sell it to your utility company, and they’ll give you a credit on your next electric bill. Your local utility company can provide more information about how this works.
Qualified Energy Property Exemption Some renewable energy projects, like solar systems, might qualify for property tax exemptions if they meet certain requirements. This means you won’t have to pay property taxes on these projects.
Residential Clean Energy Credit To promote clean energy, the federal government offers a 30% tax credit for solar systems installed between 2022 and 2032. This credit will gradually reduce to 26% by 2033 and then to 22% by 2034. If not renewed, it will expire in 2035. You can apply for this credit through the IRS.

Considerations for Installation

Consider these factors when deciding whether a solar panel system is the right choice for you. What type of solar system do you want? Some solar panels are more effective than others

Type of Solar System: Different solar panels have varying levels of effectiveness. Some work better than others, so it’s essential to choose the right type for your needs.

Home Ownership: Are you a homeowner or a renter? Homeowners have more flexibility to make changes, while renters can explore community solar programs that are like subscription services.

Location: Solar panels work best when they get direct sunlight for at least four hours a day. If your home is in the shade most of the time, your panels won’t generate as much energy.

Roof Condition: Before you move forward, have a professional installer inspect your roof. They’ll tell you if any repairs or maintenance are needed to support the solar panel installation.

HOA and Neighborhood Rules: Homeowners’ associations (HOAs) in Ohio might have rules that limit or even forbid solar panels. Be sure to check your HOA’s guidelines or any rules from other neighborhood associations.

Insurance Coverage: It’s also a good idea to contact your insurance agency to ensure you have the right coverage for your solar panels. Don’t forget to do this step.

The Bottom Line – Are Solar Panels Worth It in Ohio?

In considering the worth of solar panels in Ohio, the answer becomes abundantly clear: they are an excellent investment. With a range of incentives, tax credits, and the potential for significant energy savings, solar panels offer a sustainable and cost-effective solution to power your home while reducing your carbon footprint. 

ESD Solar is your trusted partner in making the switch to clean energy. If you’re ready to take the next step and harness the power of the sun, contact ESD Solar today to learn more about how you can benefit from a solar panel installation. Contact us now!

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