Investing in solar panels is a wise decision, especially considering the cost of solar panels in Ohio. Ohio’s state law mandates that utilities must provide their customers with full retail net meters, enabling homeowners to substantially lower their electricity bills through solar energy.
Furthermore, Ohio has implemented a renewable energy portfolio standard, which includes a dedicated portion for solar energy. By 2027, utilities are required to generate 12.5% of their electricity from renewable sources. When you consider the combination of net metering, the 30% federal tax credit, and the competitive cost of solar panels in Ohio, it becomes clear that transitioning to solar power is an excellent choice for homeowners in Ohio.
Save Money and Get a Return on Your Investment With Solar Power in Ohio
After applying for the federal 30% solar tax credit, Ohioans typically incur an installation expense of $10,517 when installing residential solar systems – that equates to approximately $2.50 per watt installed. Of course, costs may differ slightly between different regions within Ohio; to give more accurate information the graph below displays the average costs of installing solar systems installed there.
What Are the Benefits of Switching to Solar Power in Ohio
Since 2000, solar panel costs have fallen by an incredible 80% and continue to benefit from both the federal tax credit and net-metering laws, further making solar an attractive investment option. When measured against long-term returns on both properties and stock markets, solar panels offer highly favorable returns.
Calculate the cost per kilowatt-hour (kWh) for solar power over 25 years to evaluate potential savings and plan ahead accordingly.
Ohio Solar Incentives & Tax Credits
Federal Solar Tax Credit
Federal tax credits provide the primary motivation for installing solar panels in both residential and commercial properties. They cover 30% of installation costs; thus if you invest in a system worth $20,000 you could claim an income tax deduction of $6,000.
Notably, the tax credit will remain at 30% until 2032. After that date, it will decrease gradually until reaching 26% by 2033 and then 22% again by 2034 before finally expiring altogether in 2035.
Net Metering
Ohio policy mandates that utilities offer full retail net metering to their customers, ensuring they receive a full retail price for every kWh generated from solar systems – creating significant savings for solar users.
Utility companies need solar energy credits (SRECs), which represent the environmental attributes associated with producing one megawatt-hour (MWh) of solar energy, in order to meet this mandate. Installing solar panels in Ohio not only generate electricity but also earn SRECs that can be sold. Unfortunately, Ohio’s market is currently oversaturated and values SRECs at only $4.00 each; nevertheless, generating five SRECs annually would result in additional earnings of $20 in addition to energy savings realized.
Ohio Sales and Use Tax Exemption
Ohio provides an exemption from sales and uses taxes for solar energy equipment. This exemption ensures that state sales and usage taxes are not applied to the cost of solar photovoltaic systems.
Different Types of Solar Panels
Grid-Tied Solar System
The most prevalent type of solar system is a grid-tied system, which does not incorporate a solar battery for backup power. This system relies on net metering to maximize savings. Solar panels are mounted on your roof and interconnected. The generated power is directed to an inverter, where it is converted from direct current (DC) to alternating voltage (AC). The electricity produced is either consumed within your home or exported to the utility grid.
Hybrid Solar System
In hybrid solar systems, the rooftop panels are connected to both a battery and the electric grid. Any solar electricity that is not immediately consumed by your home can be stored in the battery and, if necessary, sent to the grid. This setup reduces your reliance on traditional utilities and also provides a backup power source. It’s important to note that battery storage can be costly, but state incentives may assist in mitigating the overall expense.
Off-Grid Solar System
Off-grid solar systems operate independently without any connection to the grid, relying solely on solar energy to meet their power requirements. These systems do not have access to traditional utilities. Solar panels are essential for generating electricity both during the day and at night. However, it’s worth noting that off-grid systems can be expensive and are generally not suitable for homes that have access to the electrical grid.
How Much Electricity Can Solar Panels Generate in Ohio
Solar panels produce varying amounts of electricity depending on their location. When installed on a roof with a 30-degree pitch facing south, they can generate 1,150 kWh per year of peak DC (direct current) capacity for every 1 kW of installed solar power. To assess how solar panel production is influenced by factors such as location, roof slope, and roof orientation, you can utilize the calculator provided.
What Are the Advantages and Disadvantages of Solar Panel Installation in Ohio?
Thanks to Ohio’s net metering law, installing solar panels will lead to savings on your energy bills. Utilities in Ohio are obligated to provide kWh credits to households with solar systems that generate surplus energy. While Ohio does have a Solar Renewable Energy Credit (SREC) program, the incentives associated with each SREC are relatively limited.
It is important to consider that installing solar panels in Ohio does have some drawbacks. The state and utility incentives for solar are not as abundant compared to other regions. Additionally, Ohio receives less sunlight on average compared to states like Arizona, resulting in lower energy production from solar systems in Ohio.
What Factors Determine the Price of Solar Panels in Ohio
Solar panels are expensive for many reasons.
System Size
Solar panel systems are more expensive the bigger they are. The average price per unit for solar panels decreases as system size increases.
Panel Brand and Quality
Solar panels are no different. They come in many different quality levels, which can vary greatly depending on the brand.
Panel Type
The quality of the installation is directly influenced by the type of panel that you use (typically, monocrystalline, thin-film, or polycrystalline). Quality = price.
Your Roof
Solar panel installations are not only expensive because of the equipment. Solar installers will charge you for the complexity of the installation. If your roof is complex, it may cost more.
Installation Company
All solar companies charge different rates for labor. Paying more for a reputable company that has better reviews or a shorter installation period may be worth it.
Permitting and Interconnection
The cost of permits and the interconnection fee with the grid may add to your solar installation costs.
FAQs About Ohio Solar Panels
What Is the Cost of Solar Panels in Ohio
In Ohio, the average cost of solar panels is 2.87/W as of July 2023. A solar panel system of 5 kilowatts can cost anywhere between $16,502 and 14,350.
What Are the Incentives for Solar Energy in Ohio?
Solar installations in Ohio qualify for a 30% tax credit. Find out more about local Ohio incentives, rebates & tax credits that can help you reduce the cost of solar energy even further.
What Are My Solar Financing Options?
You have three options for paying for solar: cash, a loan, or a lease/power purchase agreement. Solar loans and leases are advantageous because they typically do not require a significant upfront payment, or in the case of $0-down loans, no upfront payment at all.
If you’re interested in exploring solar financing options in Ohio, ESD Solar is a reputable provider that offers a compelling offer. With ESD Solar, you can enjoy the benefits of solar power with their 6 months free and $0 down payment plan. Take advantage of this opportunity to save on your electricity bills and contribute to a greener future.
Contact ESD Solar today to learn more about their services and get started on your solar journey.
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