Ohio Solar Incentives, Net Metering & Cost (2026)
Written by Aditya Patil · Last updated 2026-09-24
Thinking about going solar in the Buckeye State? Ohio homeowners face unique net metering rules and incentive structures. While statewide tax exemptions are scarce, programs like ECO-Link and the SREC market offer some financial advantages.
$167
Avg. monthly bill
19.19¢/kWh
Avg. rate
Avoided-cost (SSO)
Net metering
None
State tax credit
Cost of solar in Ohio
As of our latest review, there is insufficient state-specific median pricing data available in the LBNL Tracking the Sun dataset to confidently report an average cost per watt specifically for Ohio residential systems.
However, an average Ohio household consumes about 10,432 kWh per year. With electricity prices currently averaging 19.19¢/kWh, a properly sized system can meaningfully reduce your monthly power bill. Since there is no state-level tax credit, your primary up-front financial lever is the federal residential clean energy credit (if eligible) or specialized financing options like Ohio's ECO-Link program.
Incentives & rebates
| Program | Amount | Status |
|---|---|---|
| Energy Conservation for Ohioans (ECO-Link) | Up to a 3% interest rate reduction for up to 7 years on bank loans used for qualifying energy-efficient home improvements, which can include solar installations. | open |
| Solar Renewable Energy Certificates (SRECs) | Variable market rate. One SREC is minted for every 1 MWh (1,000 kWh) of solar electricity generated. | open |
Sales tax: None. Ohio does not have a statewide sales tax exemption for residential solar installations.
Property tax: None statewide. Ohio does not offer a statewide property tax exemption for residential solar.
Net metering / export rules
Ohio requires investor-owned utilities to offer net metering, but compensation is less generous than full 1:1 retail net metering found in some other states. Under the Public Utilities Commission of Ohio (PUCO) guidelines, any excess electricity your panels send to the grid is credited to your next bill at the utility's Standard Service Offer (SSO) generation rate.
Because this SSO rate only accounts for the raw energy generation cost — stripping out the fixed transmission and distribution fees — you are essentially credited at a wholesale-like avoided cost. This structure incentivizes homeowners to directly consume as much of their own solar energy as possible, potentially by shifting heavy appliance use to the middle of the day or investing in a home battery.
| Policy Type | Avoided-cost (SSO generation rate) |
| System Size Cap | 120% of average annual electricity usage |
| Rollover | Monthly excess credits roll over to future bills |
| Competitive Suppliers (CRES) | Export compensation depends on supplier contract terms |
Excess generation is credited at the unbundled generation rate (the energy-only portion of the bill), not the full retail rate. This means fixed delivery and distribution charges cannot be offset by solar exports. Monthly excess credits roll over to future bills. If a customer is with a competitive supplier (CRES), export compensation is determined by the supplier's contract.
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Energy Harbor Corp. | 6.14¢/kWh | 902,100 |
| Ohio Power Co | 19.33¢/kWh | 550,768 |
| AEP Energy | 7.58¢/kWh | 446,968 |
Residential rate and customer counts are from EIA-861 (see Data sources below). Rates can vary if you participate in a competitive retail electric service (CRES) contract.
Lease vs. buy in Ohio
Since Ohio does not have a state-level solar tax credit to offset the upfront cost, some homeowners consider third-party ownership (like a lease or Power Purchase Agreement) to avoid paying cash out-of-pocket. While this can provide immediate savings, purchasing the system with cash or a loan typically yields the highest long-term financial return. Check out our lease vs. buy guide for a deeper dive.
Estimate your own numbers
Every home is different. Use our solar calculator with your exact electricity usage to see personalized estimates for going solar in Ohio.
FAQ
Is solar worth it in Ohio?
With average electricity rates at 19.19¢/kWh, solar can be a solid investment in Ohio. However, because net metering pays only the generation rate (not the full retail rate), you'll see the best return by using your solar power directly as it's generated, rather than exporting it back to the grid.
Are there any Ohio state solar tax credits?
No, Ohio does not offer a statewide solar tax credit, sales tax exemption, or property tax exemption for residential solar installations. Homeowners can use the ECO-Link program for loan interest reductions and can earn Solar Renewable Energy Certificates (SRECs), though Ohio SREC prices have been relatively low following recent legislative changes.
How does net metering work in Ohio?
Ohio mandates net metering for investor-owned utilities, but excess power sent to the grid is credited at the utility's Standard Service Offer (SSO) generation rate, which excludes transmission and distribution charges. If you buy your power from a competitive retail supplier instead of your utility, your export rate will be dictated by your specific supplier contract.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil