Ohio Solar Power: 2026 Costs, Incentives & Savings
Solar in Ohio
Ohio electricity prices rose 31% from 2020 to 2024 — and with the state’s utility rates among the 17th highest in the nation, more Ohio homeowners are turning to solar to stabilize their energy costs.
If you’re researching your options, this guide covers what you need to know about solar panels for your home in Ohio — from how installation works to what it actually costs.
OHIO by the Numbers
24th Most residential solar in the United States
22k Households have installed solar panels
4.3 Average daily peak sun hours
~$58k Ohio average savings over 25 years
Ohio Solar Panel Cost
Wondering what solar actually costs in Ohio? We built this calculator using real installation data from cities across the state — from Columbus and Cleveland to Cincinnati and Toledo. It shows both your estimated monthly lease payment through Palmetto’s LightReach program (no upfront cost required) and a cash purchase option, so you can compare and choose what works best for your home.
Lease Cash Purchase
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home in Ohio.
Recommended System
8.36 kW
Typical for your home size in OH
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
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home in Ohio.
Recommended System
8.36 kW
Typical for your home size in OH
Cost Breakdown
Your estimated investment
System Cost
$23,814
Cost Per Watt
$2.85/W
Final Cost
$23,814
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$133
Payback Period
Break-even point
12.5 years
25-Year Savings
$58,434
Key Takeaways
- Ohio electricity rates rose 26% since 2021 — solar can help protect your budget from future utility price increases.
- Leasing solar through Palmetto’s LightReach program means no upfront cost, no maintenance, and a 90% Production Guarantee.
- Ohio offers strong solar incentives including net metering, SRECs, and property tax exemptions that can reduce your long-term costs.
Ohio Electricity Prices
Ohio electricity rates have climbed nearly 26% since 2021 — and there’s little sign they’ll slow down.
The U.S. Energy Information Administration shows Ohio rates rising from 12.8¢ per kWh in 2021 to 16.1¢ in 2024. That’s money leaving your household every month — and the trend isn’t moving in homeowners’ favor.
Solar can help offset that exposure. By generating your own power, you reduce how much electricity you buy from the grid — which means rising utility rates have less impact on your monthly budget.
Programs like Palmetto’s LightReach make this accessible with no upfront cost. You pay a low, fixed monthly rate — Palmetto owns and maintains the system — and you’re no longer at the mercy of utility price increases.
Price of Energy: Ohio vs National Average
0¢
10¢
20¢
30¢
13.7¢
12.8¢
15.0¢
13.9¢
16.0¢
15.4¢
16.5¢
16.1¢
2021
2022
2023
2024
US Average
Ohio
Ohio Area Utility Providers
Ohio’s electricity rates vary widely by utility — and understanding those differences can help you make smarter energy decisions. The data below reflects 2023 rates, the most recent available, across six major Ohio utility providers.
| Utility Provider | Rate ($/kWh) | Change (%) |
|---|---|---|
| Cleveland Electric Illuminating Company | 14.40¢ | -10% |
| AES Ohio | 16.40¢ | +3% |
| Duke Energy Ohio | 14.70¢ | -8% |
| Ohio Edison | 14.60¢ | -9% |
| AEP Ohio | 18.60¢ | +16% |
| South Central Power | 14.20¢ | -11% |
| OH Average | 15.40¢ | -4% |
| US Average | 16.0¢ | — |
Ohio Solar Incentives
Ohio homeowners have access to a range of solar incentives in Ohio — from statewide programs to local utility credits — that can meaningfully reduce the cost of going solar.
These incentives include net metering credits, property and sales tax exemptions, tradeable Solar Renewable Energy Credits (SRECs), and reduced-interest loan programs like ECO-Link — each designed to lower the long-term cost of a solar installation.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Ohio Net Metering | Net Metering | Ohio requires investor-owned utilities to credit residential solar customers for excess electricity sent to the grid, with surplus credits rolling over monthly. | Learn More |
| Ohio Solar Renewable Energy Credits (SRECs) | SREC | Ohio solar homeowners earn one tradeable SREC for every 1,000 kWh of electricity their system produces, which can be sold on the open market to utilities required to meet the state’s solar energy standard. | Learn More |
| Ohio Property Tax Exemption for Solar Energy Systems | Property Tax Exemption | Solar energy systems with a nameplate capacity of 250 kW or less installed on or after January 1, 2010 are fully exempt from Ohio real property and public utility tangible personal property taxes. | Learn More |
| Ohio Sales Tax Exemption for Solar Equipment | Sales Tax Exemption | Ohio may exempt qualifying solar energy equipment — including panels, inverters, racking, and battery storage — from the state’s 5.75% sales tax, though the status of this exemption is currently disputed and should be verified directly with the Ohio Department of Taxation. | Learn More |
| 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 |
| Ohio PACE Financing (Property-Assessed Clean Energy) | Rebate | Ohio’s PACE program allows commercial, industrial, nonprofit, and multi-family property owners to finance 100% of solar installation costs with no upfront payment, repaid over 15–25 years as a special assessment on their property tax bill. | Learn More |
| Cincinnati Property Tax Abatement for Green Buildings | Property Tax Exemption | Cincinnati homeowners who install solar panels or make qualifying energy-efficiency upgrades can defer property taxes on the increased assessed value of their home for 10 years (renovations) or 15 years (new construction). | |
| 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. | |
| Hamilton County Home Improvement Program (HIP) | Rebate | Hamilton County’s Home Improvement Program provides qualified homeowners with low-interest loans of up to $50,000 at a 3% reduced interest rate for energy-efficient upgrades including solar panel installations. | |
| USDA Rural Energy for America Program (REAP) | Rebate | The USDA REAP program provides grants covering up to 50% of eligible project costs and loan guarantees for agricultural producers and small rural businesses in Ohio installing solar panels or battery storage systems. | Learn More |
Ohio Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Ohio’s mix of cold winters, humid summers, and lake-effect clouds can impact solar output — but don’t let that fool you. Most Ohio homes still produce excellent solar energy year-round.
About the Data
This map shows average daily solar energy across Ohio based on historical data.
What Can the Average Ohio Solar System Power?
Summer Production (July)
- 45.8 kWh/day
- In July, your 10 kW system could power:
- 3.6 average Ohio homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
- 17.0 kWh/day
- In December, your 10 kW system could power:
- 2 average Ohio homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
- 11930 kWh/year
- Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Go Solar with LightReach — No Upfront Cost
If you’re not ready to purchase solar outright, Palmetto offers a Power Purchase Agreement (PPA) for Ohio homeowners — available through all major Ohio utilities, including AEP Ohio, Ohio Edison, Cleveland Electric/Illuminating Company, Duke Energy, AES Ohio (formerly Dayton Power & Light), and Toledo Edison. With a PPA, you pay a set rate per kilowatt-hour (kWh) for the electricity your system produces — rather than a fixed monthly amount. That means your bill may be higher in sunny summer months and lower in winter, but you’re only ever paying for the clean energy your panels actually generate.
Compared to a cash purchase, a PPA through Palmetto’s LightReach program requires no upfront investment. Palmetto owns the system and handles all design, installation, permitting, and maintenance at no cost to you. Every LightReach plan includes premium black solar panels, a high-efficiency inverter, comprehensive project management, and a 90% Production Guarantee — if your system underperforms, Palmetto credits you the difference. You get the benefits of solar without the responsibilities of ownership. Learn more about buying vs. leasing solar.
Frequently Asked Questions
Does Ohio have net metering? Yes, Ohio requires all investor-owned utilities to offer net metering for residential solar systems up to 25 kW. When your panels produce more electricity than your home uses, the surplus is credited to your account, and those credits roll over month to month.
Do solar panels increase your home value in Ohio? Yes — but only if you own the system outright. Homes with solar panels sell for approximately 4.1% more than comparable homes without them. This benefit applies to purchased or financed systems only — not leased systems like Palmetto’s LightReach program.
How much does it cost to go solar in Ohio? With Palmetto’s LightReach lease, Ohio homeowners can go solar for as low as $101/month — with no upfront cost. A typical 8.36 kW Ohio system costs around $23,814.
What’s the best solar company in Ohio? Palmetto is widely regarded as one of the best solar companies serving Ohio homeowners. Since 2020, we’ve completed 1,899 solar installations across the state, backed by an installer network built for quality and reliability.