Cleveland, OH Solar Panels: 2026 Costs, Incentives & Savings
Solar Power in Cleveland
If you live in Cleveland and have watched your electric bill climb, you’re not alone. Ohio electricity prices have increased 31% from 2020 to 2024, with residential rates now averaging 16.07 cents per kWh. Many Northeast Ohio homeowners are searching for a way to take control of their energy costs, and solar installation offers a practical path forward.
At Palmetto, we make going solar easy to understand. Whether you’re just curious or ready to learn more, our guide on home solar panels can help you explore what solar could mean for your Cleveland home.
OHIO by the Numbers
24th Most residential solar in the United States
22 Households have installed solar panels
4.4 Avg peak sun hours per day
~$62k Cleveland average savings over 25 years
How Much Do Solar Panels Cost in Cleveland, OH?
See real solar costs for Cleveland homes, built from our actual installation data across neighborhoods like Lakewood, Parma, Shaker Heights, and Cleveland Heights. This calculator uses firsthand local numbers—not estimates—to help you understand what solar could look like for your home. Explore your options with confidence.
Lease Cash Purchase
Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Ohio.
Recommended System
8.36 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$101/mo
As low as
$101/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment
System Cost
$23,814
Price per Watt
$2.85
Final Cost
$23,814
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$143
Payback Period
Break-even point
11.6 years
25-Year
Savings
$62,358
Palmetto Reviews
We were having trouble getting the system up and running. So they sent out a technician to see what the problem was. Turned to be a simple fix. Which took no more than a few minutes to rectify and have been happy with the system ever since. We’ve saved well over a few hundred dollars by having the solar system installed. I’d recommend this for everyone so that you can also benefit from not having to pay for regular electricity at high rates that they charge.
Michael Fleming
Euclid, Ohio
Palmetto is a very good company to create your solar system. The company is very methodical which is important as they cover the legal steps that cover the contracts, surveys documents and design. I have been updated frequently and we are getting close to the start of the installation. The lead person is very good, pleasant, polite, trustworthy, and gets the job done. Palmetto is the company, quality is the word.
David Crockett
Mentor, Ohio
They did what they promised. Make sure that you read the contract and understand everything before you sign. Also nobody can predict for sure how many sunny days are going to be over your house 😂
Toma Ivan
Parma, Ohio
Key Takeaways
- Cleveland homeowners save around $62,000 over 25 years with solar, as rising Ohio electricity rates—up 31% since 2020—make generating your own power increasingly worthwhile.
- Ohio offers helpful solar incentives like Cleveland’s 15-year property tax abatement and the ECO-Link program’s reduced-interest loans, helping lower the cost of going solar.
- Leasing solar means no upfront cost through LightReach—Palmetto owns and maintains the system while you enjoy the savings from day one.
Cleveland Electricity Prices
If you live in Cleveland and feel your electric bill creeping higher each year, you are not imagining it.
Electricity in Ohio keeps climbing. Residential rates rose from 12.8 cents per kWh in 2021 to 16.1 cents in 2024. That steady increase adds up on every Cleveland household’s monthly bill.
Solar offers a way to manage these rising costs. By generating power from your own roof, you rely less on the grid and gain more predictability, even when utility rates in Northeast Ohio continue to move upward.
Price of Energy: Ohio vs National Average
0¢
10¢
20¢
30¢
13.7¢
12.8¢
15.0¢
13.9¢
16.0¢
15.4¢
16.5¢
16.1¢
2021
2022
2023
2024
US Average
Ohio
Cleveland Area Utility Providers
If you live in Cleveland and have watched your electric bill climb, you’re not alone. In 2023, The Illuminating Company charged 14.4¢ per kWh—and many Northeast Ohio homeowners are exploring solar installation in Cleveland to take control of their costs.
That 2023 rate sat below the state average of 15.40¢ and the national average of 16.0¢ per kWh. Local rates reflect Ohio’s grid mix and delivery costs, but utility prices tend to rise over time.
Cleveland Utilities Electricity Rates
The Illuminating Company
14.40¢
-10%
OH Average
15.40¢
-4%
US Average
16.0¢
Ohio Solar Incentives
Going solar in Cleveland is more affordable thanks to several solar incentives in Ohio that help offset installation costs.
These state and local programs come in a few forms. Cleveland offers a property tax abatement that exempts up to 100% of your home’s added value for 15 years. Loan programs like ECO-Link provide reduced-interest financing for panels and battery storage.
| Incentive | Type | Description | Source |
|---|---|---|---|
| ECO-Link Program (Energy Conservation for Ohioans) | Rebate | The Ohio Treasurer’s ECO-Link program offers homeowners reduced-interest loans — up to 3% below market rate — for solar panel and battery storage installations, with loan amounts up to $50,000. | Learn More |
| Cleveland Property Tax Abatement for Solar | Property Tax Exemption | Cleveland homeowners can receive a property tax abatement that exempts up to 100% of the increased property value resulting from a solar installation for 15 years. |
Cleveland Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Cleveland’s lake-effect clouds and snowy winters may seem challenging for solar. But like Seattle and Boston, Cleveland gets plenty of usable sunlight, and cooler temperatures actually help panels work more efficiently year-round.
Solar Production in Cleveland by Month
System Size: 5 kW 7 kW 10 kW
Daylight Hours
Energy Production (kWh/day)
What Can Your Solar System Power?
Summer Production (July)
50 kWh/day
In July, your 10 kW system could power:
- 3.3 average homes (15 kWh/day per home)
- or Run central AC for 16 hours AND power all other appliances
- or Fully charge 5.0 Tesla Model 3 electric vehicles
Winter Production (December)
14.6 kWh/day
In December, your 10 kW system could power:
- 1.0 average homes (15 kWh/day per home)
- or Keep your home heating system running for 7 hours
- or Fully charge 1.5 Tesla Model 3 electric vehicles
Annual Production
12,731 kWh/year
Over a year, your 10 kW system could:
- Offset 9 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 153 trees
Solar Panel Systems in Cleveland
We’ve mapped solar installations across the United States, right down to the neighborhood level. Explore this interactive map to see how many of your Cleveland neighbors have already switched to solar. Click any hexagon to discover the number of installations in that area, and see clean energy growing across your community.
Leasing Solar Panels
In Cleveland, most homeowners are served by the Illuminating Company (Cleveland Electric/FirstEnergy), and Palmetto offers a Power Purchase Agreement (PPA) in this area. With a PPA, you don’t buy the system. Instead, you pay a set price for each kilowatt-hour of solar power your panels produce, often less than your utility charges.
A PPA removes the upfront cost of buying solar with cash, and it removes the maintenance burden too. Palmetto owns and maintains the system, so repairs and monitoring are handled for you. Because Ohio panels produce more in summer, your solar bills may be higher then, but savings even out across the year.
To compare your options, see our guide on whether to buy or lease solar, or explore LightReach.
Frequently Asked Questions
Does Cleveland, OH have net metering?
Yes, Cleveland, OH has net metering. Most Cleveland homeowners are served by The Illuminating Company (Cleveland Electric/FirstEnergy), which offers monthly net metering. Each month, the solar energy your panels send to the grid is credited on a 1:1 basis against your total consumption for that billing cycle.
If your panels produce more than your home uses in a month, that excess is carried forward to the next billing cycle at the generation rate (roughly 5–12 cents/kWh), rather than the full retail rate.
Do solar panels increase your home value in Cleveland, OH?
Yes. In Cleveland, solar panels that you purchase or own outright can add value to your home. A Zillow study found that homes with solar panels sell for approximately 4.1% more than comparable homes without them.
This applies to owned systems, not leased or PPA systems. With a leased system, a buyer may assume the lease agreement, so it can affect resale differently rather than directly adding value.
How much does it cost to go solar in Cleveland, OH?
With Palmetto’s LightReach lease, Cleveland homeowners can go solar for a low fixed monthly payment—as little as around $101/month—with no upfront cost. Palmetto owns and maintains the system, so you start saving from day one.
How does leasing solar work and what’s the approximate cost in Cleveland, OH?
With Palmetto’s LightReach solar lease, there’s no upfront cost. You make one simple monthly payment covering the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 8.36 kW system in Cleveland, that’s about $101/month.
What’s the best solar company in Cleveland, OH?
At Palmetto, we combine national experience with a local focus for Cleveland homeowners. Since 2020, we’ve completed 1,899 installations across Ohio, helping families in neighborhoods like Lakewood, Parma, and Shaker Heights generate their own power.
What solar incentives are available in Cleveland, OH?
Cleveland homeowners can take advantage of state and local solar incentives. The city’s property tax abatement exempts up to 100% of the added home value from solar for 15 years, and Ohio’s ECO-Link program offers reduced-interest loans (up to 3% below market) for panels and battery storage.
Is solar worth it financially?
For many Cleveland homeowners, solar can make financial sense—especially as Ohio electricity rates have climbed 31% since 2020. With a LightReach lease, there’s no upfront investment, and your monthly payment is typically less than your current electric bill.