Is solar worth it in Ohio given lower sunshine?

Yes — Ohio solar has a longer payback (12-13 years) than sunny states, but the SREC market, 100% property tax exemption at Ohio's high 1.52% rate, and 30% ITC make the math work over 25 years. Affordable installation costs ($2.70/W) and retail-rate net metering add to the case. 12+ years of pure profit after payback.

What is the best time to install solar in Ohio?

Spring (March-May) is ideal — installers are less busy, weather is mild, and systems come online before summer peak. Avoid winter for difficult installation conditions. Permitting takes 2-6 weeks in most Ohio jurisdictions. The 30% ITC applies when the system is placed in service, not when you sign the contract.

Ohio Solar Calculator

Enter your Ohio utility bill — get production at 3.8 PSH, SREC income ($8-12/SREC), retail net metering savings, 100% property tax exemption, and 25-year ROI for Columbus, Cleveland, Cincinnati, and Dayton.

Ohio solar inputs

Monthly electric bill?

Utility?

System size?

Ohio solar estimate

20 × 400W panels (8 kW system)

Recommended size for your bill: 11.0 kW

Monthly usage1,000 kWh/mo

Annual production (OH 3.8 PSH)8,877 kWh/yr

Net metering savings$1,154/yr

Ohio SREC income (8.9 SRECs × $10)$89/yr

SREC range ($8-$12/SREC)$71–$107/yr

Total annual benefit$1,243/yr

Gross system cost$21,600

Federal ITC (30%)-$6,480

Net cost after ITC$15,120

Property tax exemption (est. 20yr)$5,581

Payback period12.2 yrs

25-year savings$31,069

Ohio SREC note: SRECs (Solar Renewable Energy Credits) are sold separately from net metering. 1 SREC = 1,000 kWh of solar production. Ohio spot market prices fluctuate — currently $8-12/SREC. Your installer can connect you with SREC aggregators like SRECTrade or Sol Systems.

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How to Use This Calculator

Select your Ohio utility and enter your bill

Ohio has four main electric utilities: AEP Ohio (Columbus and central Ohio), FirstEnergy (northeast Ohio including Cleveland), Duke Energy Ohio (Cincinnati area), and Dayton Power & Light (DP&L, Dayton area). Your utility determines your electricity rate, which affects both net metering savings and SREC valuation. Use your average 12-month bill for the most accurate sizing.

Understand Ohio's SREC market

Ohio is one of the few states with an active Solar Renewable Energy Credit (SREC) market. For every 1,000 kWh your solar system produces, you receive one SREC that you can sell on the open market. Ohio's SREC prices currently trade at $8-12 per SREC. An 8 kW system producing ~8,600 kWh/year generates roughly 8-9 SRECs, adding $80-110/year in income on top of net metering savings.

Ohio's incentive picture

Ohio does not have a state solar tax credit, but has three strong protections: (1) 30% federal ITC, (2) 100% property tax exemption under ORC 5709.53, and (3) retail-rate net metering. The SREC market compensates Ohio homeowners for the state's lower sun compared to southern states.

The Formula

Monthly kWh = Monthly bill ÷ Electricity rate Annual production = System kW × 1,000 × 3.8 PSH × 365 × 0.80 Recommended kW = Monthly kWh ÷ (3.8 PSH × 30 days × 0.80) Net metering savings = Annual production × Retail rate SREC income = Annual production ÷ 1,000 × $10/SREC (avg) Total savings = Net metering savings + SREC income Gross cost = System kW × 1,000W × $2.70/W ITC = Gross cost × 30% Net cost = Gross cost − ITC Property tax savings = System value × 1.52% × 20 years Payback = Net cost ÷ Total annual savings

Ohio's 3.8 PSH is lower than the US average of 4.5, which means systems produce less per kW. However, SREC income adds $80-120/year on top of net metering savings, partially offsetting the lower production. Ohio also has relatively moderate installation costs ($2.70/W avg), balancing the payback timeline.

Example

Thompson family — Columbus, OH (AEP Ohio)

The Thompson family in Columbus has a $130/month average bill with AEP Ohio at $0.13/kWh. They're evaluating an 8 kW system.

Monthly bill$130/mo

UtilityAEP Ohio ($0.13/kWh)

System size8 kW (20 panels)

LocationColumbus, OH (3.8 PSH)

Result

Annual production~8,614 kWh/yr

Net metering savings~$1,120/yr

Ohio SREC income~$86/yr (8.6 SRECs)

Total annual benefit~$1,206/yr

Gross system cost$21,600

Federal ITC (30%)-$6,480

Payback period~12.5 years

25-year savings~$30,150

Ohio's payback is longer than sunny states due to 3.8 PSH, but the SREC market and 100% property tax exemption add real value. The 25-year savings of over $30,000 on a $15,120 net investment represents a solid return on a 25-year asset.

FAQ

How do Ohio SRECs work and how do I sell them? ▼

Ohio's renewable portfolio standard requires electric utilities to source a portion of their electricity from solar. To comply, utilities buy Solar Renewable Energy Credits (SRECs) from solar system owners. Your system generates 1 SREC per 1,000 kWh produced. SRECs are tracked by the PJM-EIS GATS registry (Ohio is in PJM). To sell SRECs, register with an SREC aggregator like SRECTrade, Sol Systems, or Flett Exchange. They handle the market transactions and pay you quarterly. An 8 kW Columbus system generates ~8-9 SRECs/year worth $80-110 at current market prices.

Does Ohio have a 100% property tax exemption for solar? ▼

Yes — Ohio Revised Code 5709.53 provides a 100% property tax exemption for solar energy systems. When you install solar, your county auditor cannot increase your home's assessed value for tax purposes, even though solar adds significant market value. Ohio's average effective property tax rate is about 1.52% — one of the highest in the Midwest — making this exemption worth $200-400/year on a typical residential system. Some counties require filing Form DTE 26 to claim the exemption; confirm with your county auditor.

How does Ohio net metering work? ▼

Ohio requires retail-rate net metering for systems up to 120% of annual consumption. Excess credits from a billing period roll over to the next month. At year end, utilities may "true up" — handling unused credits differently by utility. AEP Ohio and FirstEnergy are required by PUCO (Public Utilities Commission of Ohio) to offer net metering at retail rates. Net metering applies to residential systems up to 25 kW and commercial systems up to 250 kW.

Is solar worth it in Ohio given the lower sunshine? ▼

Yes — Ohio solar paybacks are longer than Arizona or Nevada, but the economics work over a 25-year system life. Key Ohio advantages: (1) SREC income adds to net metering savings, (2) 100% property tax exemption at Ohio's high ~1.52% rate saves $200-400/year, (3) federal ITC still applies, (4) Ohio electricity rates ($0.11-0.13/kWh) make each kWh offset valuable. A 12-13 year payback on a 25-year system still delivers 12+ years of pure profit. Ohio also has relatively affordable installation costs ($2.70/W) compared to high-cost markets.

What is the best time of year to install solar in Ohio? ▼

Spring (March-May) is the best time to install in Ohio — installers are less busy than summer, weather is mild for installation, and systems come online just before peak summer production. Avoid December-January when snow and short days mean minimal production and difficult installation conditions. Installations take 1-3 days once permitted; permitting takes 2-6 weeks in most Ohio jurisdictions. The 30% ITC applies based on when the system is placed in service (operational), not when you sign the contract.

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