Solar energy in Ohio

Installing solar panels is an expensive home improvement with an average cost of about $30,690 in Ohio. While solar comes with a high initial price tag, it can also lead to saving thousands in energy bills over the life of the solar panels. Ohio’s average monthly residential electricity bill is $137.57 as of February 2024. The state’s energy rates have increased by nearly 8%since 2022 and may continue to rise. By switching to solar energy in Ohio, you could save hundreds on energy bills and increase your home’s value. 

Investments in Ohio solar power have steadily grown in recent years. The Buckeye State ranks in the middle of the pack nationally for solar energy generation, and residents should anticipate significant solar expansion in the coming years. Keep reading to learn the benefits of solar panels, how much they cost, and whether they’re right for you.

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Ohio solar panel cost

Solar panels are not a one-size-fits-all purchase. The cost of your solar panels in Ohio is specific to your home and energy needs. The first step of the solar installation process is typically a virtual or in-person site assessment. Solar companies will provide a custom quote following this appointment based on your power usage, system dimensions, panel type, local labor, and permitting fees. Solar companies may also help you find incentives and financing options to make the purchase more affordable.

When reviewing your solar estimate, you’ll notice the price of solar panels is measured in dollars per watt. Based on data from Find Energy, the average Ohio residential solar system size is 9 kilowatts (kW), costing $3.38 per watt for a total of $27,040 before tax incentives. We calculated the total cost using the following equation.

($3.38 X 8 kW) X 1,000 = $27,040

Here’s a breakdown of how the total cost in Ohio compares to the U.S. average system size and cost using data from the Lawrence Berkeley National Laboratory. 

Your total cost and savings may depend on your system size and energy usage. You will need a larger size if you plan to eliminate your home’s utility bill. If you opt for a size that doesn’t fulfill your energy consumption, you might pay two bills; one to the utility company and another for your solar system. The following table details the cost of solar panels in Ohio at varying system sizes. 

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

Cost factors of solar panels in Ohio

The overall cost of solar in Ohio consists of hard and soft costs. Hard costs include the physical equipment, like solar panels and batteries. Soft costs include the company profits, sales, marketing, and permitting costs. Solar quotes usually include all of the following factors unless stated otherwise.

How does Ohio solar save you money?

Solar power is a money-saving alternative to traditional electricity that can reduce your monthly power bill, especially with the help of incentives. 

After factoring in the 30% federal solar tax credit and using the average electricity bill in Ohio($137.57), you can break even after a payback period of about 11 years. After 25–30 years — the typical lifespan of a solar system — you can save thousands on electricity costs before considering rising electricity rates. 

Beware of free solar panels in Ohio scam

Solar equipment is a costly investment. Be cautious of salespeople offering free solar panels in Ohio — it is a common scam. Thoroughly research companies before signing an agreement or providing personal information. While you will not receive solar for free, governmental solar incentives and local rebates in Ohio can reduce the total costs.

Ohio solar incentives 2024

Residential solar systems are an expensive investment. Take advantage of Ohio solar incentives in 2023 to help offset the cost. The Residential Clean Energy Credit is a 30% federal solar tax incentive for the price of a solar system applied on your next filed return. While there are no state-level Ohio tax credits or grants, the following table details other Ohio solar panel programs. 

Solar incentives in Cleveland

Cleveland offers a tax abatement program to remove 100% of any increase in property taxes that comes from installing solar panels for 15 years. Applicants must meet Cleveland’s Green Building Standard to qualify. You must submit your application by November 1 of the following year after your building permit was issued. For example, if you received the building permit in March of 2022, your application is due by November 1, 2023.

Qualifying building developments include: 

• New and renovated single or two-family homes
• New and renovated multifamily inverter-owned properties

Solar incentives in Cincinnati

A property tax abatement is available for residential homes in Cincinnati that meet LEED certification standards, including those with solar panels. The Cincinnati tax abatement program allows you to pay taxes on the property value prior to improvements for 10 to 15 years. For example, if you add solar panels to your home and apply for the tax abatement, you will pay the same property taxes as before solar installation. If you move to a new home and leave your panels behind, the abatement will transfer to the new owner. Submit your application through the City of Cincinnati website once your solar project is complete and you have received permits. The application requires a $250 fee. 

Information and documents needed for application:

• Property address, neighborhood, year of construction
• Hamilton County auditor parcel identification number
• Project description, cost, and date of completion
• Auditor assessment or other document verifying project completion
• Any Green Building-related documents, such as LEED certification
• Expense documents

Solar incentives in Columbus

There are no local solar incentives in Columbus, but residents can apply for federal and state solar programs. The city of Columbus set a Climate Action Plan to reach carbon neutrality by 2050. This means the city plans to achieve a balance between carbon dioxide emissions for no net increase in the overall amount of carbon in the air. Part of the Climate Action Plan’s strategy is transitioning to clean energy sources like adding 200 megawatts (MW) of solar. Based on renewable energy goals in Columbus, there could be more local solar incentives available in the future.

Why choose Ohio solar power?

With rising energy costs and the 30% federal solar tax credit, now is the right time to go solar. Investing in Ohio solar panels has several key benefits, including:

• Reduce energy bills: Installing solar panels on your home can decrease your monthly energy bill. Financial incentives and solar programs, like net metering and Renewable Energy Credits (RECs), help offset energy costs, leading to long-term savings. 
• Improve energy independence: Using self-generated solar energy reduces your reliance on the electricity grid. You can stress less about the impact of rising electricity rates and power outages.
• Go green: Solar energy is a renewable resource and a vital component in the transition to clean energy. Using solar power reduces your carbon footprint and contributes to a sustainable future.

Should I buy or lease my solar panels?

There are several ways to go solar. The most cost-effective option is a cash purchase which provides the quickest return on investment with no additional fees. Solar loans are an option to avoid upfront costs, but interest fees may add up over time. Your system will qualify for the federal tax credit with a cash purchase or solar loan.

Leasing solar panels or entering a power purchase agreement (PPA) are suitable options if you can’t afford to pay up front. In both a lease and PPA, the solar company installs panels on your property and sets fixed payment amounts for the length of your contract. The main difference is in a PPA, you pay for the kilowatt-hours (kWh) of energy used each month, whereas in a lease, you pay a fixed monthly fee. SaveOnEnergy can connect you with an installer based on your financing preferences.

A community solar program is another option for renters or those who cannot afford to own solar or do not want to install panels on their roofs. Customers subscribe to receive solar energy from a nearby array. Community solar subscribers typically receive net metering credits, which can lower their monthly electricity bills.

The best Ohio solar companies

With over 230 solar companies in Ohio, choosing the right installer may be a difficult task. We suggest getting multiple quotes from national and local solar companies to compare prices and warranty terms. If there are outliers, consider inquiring with the company to determine the cause. You should also check that your selected installer offers the financing option of your choice. Not all installers offer the same payment methods or contracts.

SaveOnEnergy can narrow your options to help you pick from the best solar companies in Ohio.We partner with trusted installers and provide you with a curated customer experience. Call the number on your screen to get your solar process started today.

National solar companies

Solar Installer	Year founded	Financing options	Warranty terms
	2011	Cash purchase or solar loan	25-year manufacturer warranty and production guarantee
	2010	Cash purchase, solar loan, PPA, or lease	Minimum 12-year product, 25-year performance guarantee
	2018	Cash purchase or solar loan	30-year performance, 25-year panel, quality-of-work, and roofing warranty
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

Local solar companies

You are not limited to a national installer when searching for solar companies in Ohio. Choosing a local company may provide a more personalized experience with local knowledge about the climate and regulations in your area. However, a national company may offer comprehensive warranties and extended services. We recommend getting quotes from national and local installers to compare prices, warranties, and customer service. If the solar company you prefer has a higher price than another, ask if they will price match the lower quote. 

What to search for in a solar contractor

Although the terms contractor and company are used interchangeably in the solar industry, there is an important distinction. Solar contractors are licensed professionals in charge of installing, repairing, and maintaining your system. While some solar companies may only manage the sales and marketing and hire contractors, others have in-house installers. Ask your chosen solar company about their process to ensure you have the correct contact information. 

Here are a few checkpoints to consider when selecting an Ohio solar contractor.  

• Required licenses and certifications. Contractor requirements vary by state and may include an electrical or contractor license and a North American Board of Certified Energy Practitioners (NABCEP) certification. 
• Customer reviews. Ask the contractor about their experience completing projects similar to yours. Search for online reviews from previous customers and evaluate the company’s customer service. 
• Product quality. Check that the contractor’s product selection is sourced from trusted manufacturers, such as the best solar panels and inverters. 
• Warranty. Review your solar warranty terms for length and other specifics. Ask about the contractor’s maintenance and repair policies. 

Important solar factors to consider

Solar power comes with many financial and environmental benefits. Before solar panel installation in Ohio, consider the following points to maximize efficiency and reduce potential roadblocks.

• Roof angle and condition: According to the Department of Energy, south-facing roofs in good condition with slopes between 15 and 40 degrees are the ideal direction for maximum solar generation. Old or damaged roofs will need repair before installation, which may increase your total cost.
• Sun exposure: Solar panels perform best with at least four hours of direct sunlight daily. Consider any obstructions and heavy shading around your property that block your solar panels from receiving sunlight. 
• Neighborhood policy: Homeowners associations (HOAs) in Ohio are allowed to restrict or prohibit the use of solar panels. Before pursuing solar panels, check with your HOA or other neighborhood organization about any restrictions and requirements. Your solar installer can also help you work through any roadblocks.