Ohio Solar Incentive Programs

10 yr
Avg. payback
$1,050/yr
Avg. annual savings
None
State tax credit
energy component
Net metering rate
Federal tax credit update: The 30% residential solar tax credit (Section 25D) ended for systems whose installation was completed after December 31, 2025, under Public Law 119-21. Systems whose installation was completed in 2025 can still claim it on a 2025 return. New 2026 installations do not qualify for homeowners who buy. What changed

Net Metering in Ohio

Ohio law (ORC § 4928.67) requires investor-owned utilities to offer net metering to customers who generate electricity from solar, wind, biomass, landfill gas, hydropower, microturbine, or fuel cells. The rate structure for net metering service must be "identical in rate structure, all retail rate components, and any monthly charges" to standard service (ORC § 4928.67). The Public Utilities Commission of Ohio (PUCO) has rulemaking authority over program details.

Important: Verify program details with your utility Net metering credit rates, system size limits, and excess-credit handling are determined by PUCO rules and individual utility tariffs. PUCO's online rate-rule pages were inaccessible during our research, and several major utility net-metering pages returned errors. The statutory framework below is Tier 1 confirmed; the specific terms your utility applies require direct verification.
AuthorityORC § 4928.67; PUCO rulemaking
Who must offer itElectric distribution utilities (investor-owned utilities regulated by PUCO)
Eligible fuel typesSolar photovoltaic, wind, biomass, landfill gas, hydropower, microturbine, fuel cell (ORC § 4928.01)
Rate structure requirementMust be identical in rate structure, all retail rate components, and any monthly charges to standard service (ORC § 4928.67)
System size capNot specified in ORC § 4928.01 for residential; verify with your utility and PUCO
Credit rateSet by PUCO rules and utility tariff; verify with your utility
Excess credit handlingSet by PUCO rules and utility tariff; verify with your utility
InterconnectionGoverned by utility tariff; verify with your utility
Statutory guarantee Ohio law guarantees that net metering must be offered and that the rate structure must mirror standard service. What the statute does not set, credit rate value, exact system sizing, year-end credit treatment, is controlled by PUCO rules and utility tariffs, which can and do change.

AEP Ohio serves customers in central and southeastern Ohio. Net metering is offered under ORC § 4928.67. Specific credit rates, system size limits, and application requirements are governed by AEP Ohio's PUCO-filed tariff.

Verify with AEP Ohio Contact AEP Ohio directly or visit aepohio.com for current net metering tariff terms, interconnection applications, and program-specific requirements.

Ohio Edison serves northeastern Ohio; Toledo Edison serves the Toledo area and northwest Ohio. Both are FirstEnergy subsidiaries regulated by PUCO. Net metering is required under ORC § 4928.67.

Verify with FirstEnergy Contact Ohio Edison or Toledo Edison through firstenergycorp.com for current tariff terms, system size limits, credit rates, and interconnection requirements.

Duke Energy Ohio serves the Cincinnati area and southwestern Ohio. Net metering is offered under ORC § 4928.67. Note: Duke Energy Ohio operates separately from Duke Energy Carolinas and Duke Energy Progress; NC-specific programs do not apply here.

Verify with Duke Energy Ohio Contact Duke Energy Ohio at duke-energy.com or call their Ohio service line for current tariff terms and net metering application details.

AES Ohio (formerly Dayton Power and Light) serves the Dayton area and surrounding counties. Net metering is required under ORC § 4928.67. Specific tariff terms are filed with PUCO.

Verify with AES Ohio Visit aes-ohio.com or contact AES Ohio directly for current net metering tariff terms, interconnection forms, and program requirements.

Ohio Utility Comparison

Feature AEP Ohio Ohio Edison Toledo Edison Duke Energy OH AES Ohio
Net metering required by law Yes (ORC § 4928.67) Yes (ORC § 4928.67) Yes (ORC § 4928.67) Yes (ORC § 4928.67) Yes (ORC § 4928.67)
Rate structure Verify with utility Verify with utility Verify with utility Verify with utility Verify with utility
System size limit Verify with utility Verify with utility Verify with utility Verify with utility Verify with utility
Excess credit at year-end Verify with utility Verify with utility Verify with utility Verify with utility Verify with utility
Service territory Central & SE Ohio Northeast Ohio NW Ohio / Toledo SW Ohio / Cincinnati Dayton area

Rate-specific terms require direct utility verification. Statutory net metering obligation confirmed via ORC § 4928.67 (Tier 1).

Property Tax Exemption

100% Exemption, Ohio's Strongest Solar Incentive Ohio exempts 100% of a qualifying solar system's assessed value from property taxes. There is no expiration date in ORC § 5709.53(B).
AuthorityORC § 5709.53(B)
Exemption amountExempt from taxation (100% of the equipment's taxable value)
Eligible systemsEnergy facilities with aggregate nameplate capacity of 250 kW or less
Installation dateMust be installed on or after January 1, 2010
Eligible fuel typesIncludes solar panels ("energy facility" defined in ORC § 5727.01)
ExpirationNone specified in ORC § 5709.53(B)
ApplicationContact your county auditor; Ohio law does not specify a universal statewide application form
Who qualifiesProperty owners with qualifying energy facility installed on the property
What this means for a typical home system A 10 kW residential solar installation is well under the 250 kW nameplate capacity threshold. If your system was installed on or after January 1, 2010, the added assessed value from the solar equipment should be 100% exempt from Ohio property tax. Verify the application process with your county auditor.
How Ohio compares Most states that offer a solar property tax exemption cap it at 80 to 85% of added value, or limit the duration to 10 to 20 years. Ohio's 100% permanent exemption is among the most favorable in the country.

Sales Tax

Ohio's sales and use tax statute (ORC § 5739.02) does not include a general residential solar equipment exemption. Residential solar equipment purchases are subject to Ohio's standard state sales tax rate (5.75%) plus applicable county/transit authority rates.

No residential exemption confirmed ORC § 5739.02 lists exemptions from Ohio sales and use tax. A blanket residential solar exemption is not among them. Commercial solar installations may qualify under other statutory provisions, consult a tax professional for non-residential applications.

State Income Tax Credit

No state income tax credit for residential solar was found in our Tier 1 research. Ohio's primary state-level solar benefit is the property tax exemption under ORC § 5709.53(B). Verify with the Ohio Department of Taxation (tax.ohio.gov) before filing.

Federal Tax Credit (§ 25D)

Federal ITC eliminated by P.L. 119-21 The One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025, eliminated the 26 U.S.C. § 25D residential solar tax credit for systems whose installation was completed after December 31, 2025. Ohio homeowners who installed solar in 2025 or earlier may still claim the credit for that tax year, but new installations in 2026 do not qualify for a federal residential solar credit.
Pre-2026 rate30% of system cost (§ 25D)
Status for 2026 installsEliminated (P.L. 119-21, signed July 4, 2025)
SourceIRS.gov (Tier 1); P.L. 119-21

Ohio Savings Estimator

Estimate Your Ohio Solar Savings

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Est. Annual Production (kWh)
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Est. Annual Bill Savings
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Annual Property Tax Savings (§ 5709.53)
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10-Year Total Savings (est.)

Estimates use 1,300 kWh/kW annual production (Ohio average), standard service credits, and 100% property tax exemption on the equipment. Bill savings depend on your utility's actual net metering credit rate, verify with your utility. Property tax savings estimate uses 35% assessment ratio (statutory maximum per ORC § 5715.01) and your stated mill rate. Federal ITC eliminated for 2026 installs (P.L. 119-21). All figures are estimates for planning purposes only.

Practical Guidance for Ohio Homeowners

Ohio's strongest incentive: the 100% property tax exemption Unlike many state incentives that expire or change, ORC § 5709.53(B) provides a permanent 100% exemption on the added assessed value from qualifying solar installations (≤250 kW, installed on/after January 1, 2010). This is a meaningful ongoing savings, not a one-time credit.

Steps to take before going solar in Ohio

  1. Confirm your utility's net metering tariff. Contact your investor-owned utility directly and ask for the current net metering tariff on file with PUCO. Ask specifically about the credit rate, system size limit, excess credit handling, and interconnection timeline.
  2. Apply for the property tax exemption. Contact your county auditor after installation to apply for the ORC § 5709.53(B) exemption. The process varies by county.
  3. No state income tax credit or sales tax exemption. Ohio does not offer a state income tax credit for residential solar, and the standard sales tax applies to equipment purchases.
  4. Federal ITC is eliminated for 2026. The 30% federal residential solar credit (§ 25D) does not apply to systems whose installation was completed after December 31, 2025 under P.L. 119-21. Consult a tax professional if you installed before that date.
  5. Get multiple quotes. Installer pricing can vary significantly; obtaining at least three quotes is advisable. Ask each installer about their interconnection experience with your specific utility.

Get quotes from Ohio solar installers

Local installers know the Ohio incentive landscape. Compare quotes and see exactly what you'd save with a system sized for your home.

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Incentives and rates change often and depend on your utility, location and tax situation. Confirm the details that apply to you with your utility and a licensed tax professional before you sign a contract.