Solar Panels in Ohio: Costs and Incentives in 2024
Going solar is an increasingly popular choice for homeowners looking to reduce their carbon footprint and potentially save money on energy bills. Ohio residents are no exception. But is it a financially sound decision to get solar panels in Ohio? Let’s delve into the costs and incentives associated with solar panels in Ohio in 2024.
Key Takeaways
| Ohio's average cost for residential solar panel systems is slightly below the national average, making it a relatively competitive market. |
| Despite limited incentives, the potential for long-term energy savings through solar panels can still be significant due to increasing electricity costs. |
| While Ohio offers some incentives like SRECs and tax exemptions, they are not as substantial as in other states. Net metering is also less favorable compared to other regions. |
| Weighing the costs, incentives, and financing options is crucial before making a decision to install solar panels. Factors like home energy consumption and roof orientation should also be considered. |
| Consider federal tax credits and potential local incentives to maximize savings. It's also important to choose high-quality panels and a reputable installer/ |
Solar Panels In Ohio: A Closer Look
According to EnergySage, the typical cost for a residential solar panel system in Ohio was $31,944 in the second half of 2023 before incentives. This figure places Ohio slightly below the national average of $34,122. Importantly, the average system size in Ohio mirrored the national average at 11.6 kW.
Breaking down the costs further, Ohio homeowners paid an average of $2.75 per watt for their solar panel systems in the latter half of 2023. This rate is marginally lower than the national average of $2.96 per watt.
Trends in Ohio’s Solar Market
While solar panel prices remained steady in Ohio throughout 2023, other factors have influenced the market. The rise in interest rates has made financing solar panels more expensive, which has dampened overall demand. Despite this, Ohio households continue to consume slightly more electricity than the national average, with an average monthly usage of 727 kWh.
Solar Incentives in Ohio: A Mixed Bag
Ohio has taken steps to encourage solar adoption, but its incentives pale in comparison to those offered by some other states. Let’s break down the key incentives available:
Solar Renewable Energy Certificates (SRECs)
Ohio has operated an SREC market since 2009. Essentially, every megawatt-hour of solar energy generated earns one SREC, which can be bought or sold. However, due to an oversupply of SRECs and low prices, the financial benefits for homeowners are currently limited.
While SRECs in Ohio trade for around $3 to $5, a homeowner with a 10 kW system might only earn about $60 annually. A more lucrative option could be registering your system to sell SRECs in Pennsylvania, where prices hover around $35 per SREC.
Net Billing
Ohio utilities generally offer avoided-cost or wholesale-cost net billing. This means you can sell excess solar energy back to the grid, but at a rate lower than the retail price of electricity. Typically, homeowners receive a credit of 30-40% of the retail rate for their excess solar power.
While net billing is better than nothing, it falls short of the one-to-one net metering found in some other states, which credits homeowners at the full retail rate for their excess solar production.
Solar Equipment Sales Tax Exemption
A small but helpful incentive, Ohio exempts solar equipment from sales tax. This can save homeowners a few hundred dollars. Additionally, Ohio offers various financial incentives for solar energy, including the Ohio Residential Renewable Energy Tax Credit, which allows homeowners to claim a tax credit of up to $1,500 for solar energy systems installed on their property. This can help offset the upfront costs of installing solar panels and make renewable energy more affordable for homeowners.
Overall, these incentives make it more financially feasible for Ohio residents to invest in solar energy and reduce their carbon footprint while also saving money on their energy bills in the long run.
Additional Considerations:
- Federal Solar Tax Credit: Don’t forget about the federal solar tax credit, which can significantly offset the cost of your solar panel system.
- Local Incentives: Some cities and counties in Ohio may offer additional incentives or rebates for solar installations.
- Solar Panel Quality and Warranties: When choosing a solar panel system, research different manufacturers, compare warranties, and consider the long-term performance of the panels.
- Professional Installation: Hiring a qualified installer is crucial for ensuring optimal system performance and safety.
Conclusion
While Ohio offers some incentives for solar panel adoption, the state’s policies lag behind those of solar-friendly states. The relatively modest SREC program and net billing arrangement limit potential savings for homeowners.
That said, solar panel costs in Ohio are competitive, and the technology continues to advance, leading to increased efficiency and potential long-term energy savings. If you’re considering going solar, carefully weigh the costs and incentives, and explore financing options to determine if it’s a worthwhile investment for your household.
Ready to harness the power of the sun and potentially save on your energy bills? Let DroneQuote help you navigate the solar landscape in Ohio. Our expert team can provide tailored quotes, handle installations, and guide you through the entire process.
Get started today with a free quote! Visit our website at DroneQuote.com to learn more about how solar can benefit your home. Get A Quote
Frequently Asked Questions (FAQ) about Solar Panels and Incentives
What are solar panels?
Solar panels, also known as solar panel systems, are devices that convert sunlight into electricity. They are typically installed on rooftops to harness solar energy.
How can I benefit from solar incentives in Ohio?
Ohio offers various solar incentives such as tax credits and rebates to encourage the adoption of renewable energy sources like solar power. These incentives can significantly reduce the cost of installing solar panels.
When is the federal solar tax credit available until?
The federal solar tax credit is currently available until 2024. It provides a tax credit to homeowners and businesses that install solar energy systems, helping them save on the upfront costs.
What is the cost of installing solar panels?
The cost of solar panel installation varies based on factors such as the size of the system, location, and any additional equipment needed. It is recommended to get quotes from solar companies in Ohio to determine the cost.
How does net metering work with solar power?
Net metering allows solar panel owners to send excess electricity back to the grid in exchange for credits. This helps offset the electricity costs when the sun is not shining, such as at night.
What is a power purchase agreement for solar energy?
A power purchase agreement (PPA) is a financial arrangement where a third-party developer owns, operates, and maintains the solar system, and the customer agrees to purchase the electricity generated at a predetermined rate.
What are the benefits of going solar?
Switching to solar energy brings various benefits, including lower electricity bills, reduced carbon footprint, energy independence, and potential increases in property value.
How can I find the best solar companies in Ohio?
When looking for solar installers in Ohio, consider factors such as experience, customer reviews, pricing, warranties offered, and the quality of the solar panels and equipment they use.
