Ohio Solar Incentive Programs
Net Metering in Ohio
Ohio law (ORC § 4928.67) requires investor-owned utilities to offer net metering to customers who generate electricity from solar, wind, biomass, landfill gas, hydropower, microturbine, or fuel cells. The rate structure for net metering service must be "identical in rate structure, all retail rate components, and any monthly charges" to standard service (ORC § 4928.67). The Public Utilities Commission of Ohio (PUCO) has rulemaking authority over program details.
| Authority | ORC § 4928.67; PUCO rulemaking |
|---|---|
| Who must offer it | Electric distribution utilities (investor-owned utilities regulated by PUCO) |
| Eligible fuel types | Solar photovoltaic, wind, biomass, landfill gas, hydropower, microturbine, fuel cell (ORC § 4928.01) |
| Rate structure requirement | Must be identical in rate structure, all retail rate components, and any monthly charges to standard service (ORC § 4928.67) |
| System size cap | Not specified in ORC § 4928.01 for residential; verify with your utility and PUCO |
| Credit rate | Set by PUCO rules and utility tariff; verify with your utility |
| Excess credit handling | Set by PUCO rules and utility tariff; verify with your utility |
| Interconnection | Governed by utility tariff; verify with your utility |
AEP Ohio serves customers in central and southeastern Ohio. Net metering is offered under ORC § 4928.67. Specific credit rates, system size limits, and application requirements are governed by AEP Ohio's PUCO-filed tariff.
Ohio Edison serves northeastern Ohio; Toledo Edison serves the Toledo area and northwest Ohio. Both are FirstEnergy subsidiaries regulated by PUCO. Net metering is required under ORC § 4928.67.
Duke Energy Ohio serves the Cincinnati area and southwestern Ohio. Net metering is offered under ORC § 4928.67. Note: Duke Energy Ohio operates separately from Duke Energy Carolinas and Duke Energy Progress; NC-specific programs do not apply here.
AES Ohio (formerly Dayton Power and Light) serves the Dayton area and surrounding counties. Net metering is required under ORC § 4928.67. Specific tariff terms are filed with PUCO.
Ohio Utility Comparison
| Feature | AEP Ohio | Ohio Edison | Toledo Edison | Duke Energy OH | AES Ohio |
|---|---|---|---|---|---|
| Net metering required by law | Yes (ORC § 4928.67) | Yes (ORC § 4928.67) | Yes (ORC § 4928.67) | Yes (ORC § 4928.67) | Yes (ORC § 4928.67) |
| Rate structure | Verify with utility | Verify with utility | Verify with utility | Verify with utility | Verify with utility |
| System size limit | Verify with utility | Verify with utility | Verify with utility | Verify with utility | Verify with utility |
| Excess credit at year-end | Verify with utility | Verify with utility | Verify with utility | Verify with utility | Verify with utility |
| Service territory | Central & SE Ohio | Northeast Ohio | NW Ohio / Toledo | SW Ohio / Cincinnati | Dayton area |
Rate-specific terms require direct utility verification. Statutory net metering obligation confirmed via ORC § 4928.67 (Tier 1).
Property Tax Exemption
| Authority | ORC § 5709.53(B) |
|---|---|
| Exemption amount | Exempt from taxation (100% of the equipment's taxable value) |
| Eligible systems | Energy facilities with aggregate nameplate capacity of 250 kW or less |
| Installation date | Must be installed on or after January 1, 2010 |
| Eligible fuel types | Includes solar panels ("energy facility" defined in ORC § 5727.01) |
| Expiration | None specified in ORC § 5709.53(B) |
| Application | Contact your county auditor; Ohio law does not specify a universal statewide application form |
| Who qualifies | Property owners with qualifying energy facility installed on the property |
Sales Tax
Ohio's sales and use tax statute (ORC § 5739.02) does not include a general residential solar equipment exemption. Residential solar equipment purchases are subject to Ohio's standard state sales tax rate (5.75%) plus applicable county/transit authority rates.
State Income Tax Credit
No state income tax credit for residential solar was found in our Tier 1 research. Ohio's primary state-level solar benefit is the property tax exemption under ORC § 5709.53(B). Verify with the Ohio Department of Taxation (tax.ohio.gov) before filing.
Federal Tax Credit (§ 25D)
| Pre-2026 rate | 30% of system cost (§ 25D) |
|---|---|
| Status for 2026 installs | Eliminated (P.L. 119-21, signed July 4, 2025) |
| Source | IRS.gov (Tier 1); P.L. 119-21 |
Ohio Savings Estimator
Estimate Your Ohio Solar Savings
Estimates use 1,300 kWh/kW annual production (Ohio average), standard service credits, and 100% property tax exemption on the equipment. Bill savings depend on your utility's actual net metering credit rate, verify with your utility. Property tax savings estimate uses 35% assessment ratio (statutory maximum per ORC § 5715.01) and your stated mill rate. Federal ITC eliminated for 2026 installs (P.L. 119-21). All figures are estimates for planning purposes only.
Practical Guidance for Ohio Homeowners
Steps to take before going solar in Ohio
- Confirm your utility's net metering tariff. Contact your investor-owned utility directly and ask for the current net metering tariff on file with PUCO. Ask specifically about the credit rate, system size limit, excess credit handling, and interconnection timeline.
- Apply for the property tax exemption. Contact your county auditor after installation to apply for the ORC § 5709.53(B) exemption. The process varies by county.
- No state income tax credit or sales tax exemption. Ohio does not offer a state income tax credit for residential solar, and the standard sales tax applies to equipment purchases.
- Federal ITC is eliminated for 2026. The 30% federal residential solar credit (§ 25D) does not apply to systems whose installation was completed after December 31, 2025 under P.L. 119-21. Consult a tax professional if you installed before that date.
- Get multiple quotes. Installer pricing can vary significantly; obtaining at least three quotes is advisable. Ask each installer about their interconnection experience with your specific utility.
Get quotes from Ohio solar installers
Local installers know the Ohio incentive landscape. Compare quotes and see exactly what you'd save with a system sized for your home.