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Solar Panels in Ohio: Costs and Incentives in March 2025
Ohio solar panel costs more than the national average, even after incentives and rebates.
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The average cost for solar panels in Ohio is $32,892 before incentives, according to data from EnergySage. Ohio offers some solar incentives, including net metering and tax exemptions, and some homeowners will qualify for the federal tax credit.
Solar costs in Ohio at a glance
Ohio | U.S. | |
|---|---|---|
Average cost of home solar system before federal solar tax credit | $32,892. | $29,360. |
Average cost of home solar system after federal solar tax credit | $23,024. | $20,552. |
Average cost per watt | $2.58. | $2.56. |
Source: EnergySage, a solar and home energy product comparison marketplace. Data is from February 28, 2025. | ||
Costs and trends in Ohio
The average cost for solar panels in Ohio, at $32,892, is slightly higher than the national average of $29,360. Incentives, rebates and tax credits lowered this by just under $9,900 on average to $23,024. In the first six months of 2024, Ohio homeowners produced an average of 88% of their energy through solar power, according to EnergySage. However, this was the lowest average energy replacement among the top 10 solar markets, which are divided by state.
Additionally, the same report shows that Ohio was just a single cent higher in the cost per watt than the national median price; that rate has since dropped and settled at $2.58.
Solar rebates and incentives in Ohio
Solar renewable energy certificates (SRECs)
Ohio has offered a solar renewable energy certificate (SREC) market since 2009, where every 1 megawatt-hour of renewable energy generates 1 SREC, a certificate that can be bought or sold. To earn these certificates, you must register with the Public Utilities Commission of Ohio. But because of an oversupply in the market and low prices, this program might not translate into much savings for homeowners.
SRECs in Ohio dropped in value greatly since 2011 and have traded between $3 to $4 in recent years. Even if you earned an SREC every month for a 10kW system, this would yield only between $33 and $64 a year. As of January 2025, SRECs earned in Ohio can only be sold within the state.
Net metering (net billing)
Net billing allows you to sell excess solar energy back to your utility to lower your electricity bill. The credit that utility companies give Ohio homeowners for net metering is the same rate that they pay when using electricity from the grid. However, net metering doesn’t cover the transmission or distribution costs — so the value of net metering credits is lower than the price homeowners pay when using the grid.
Ohio homeowners can carry over their net billing credits from month to month for future use.
Solar tax exemption
Solar equipment in Ohio is exempt from sales tax, which means you won’t pay tax on the equipment you purchase, such as solar panels. Ohio also provides homeowners an exemption from personal property tax on installed solar energy systems.
Can I get financing for a solar panel system?
In addition to tax incentives and rebates, there are options available. Many solar installers offer financing, but you may also be able to finance your solar investment through a home equity loan or home equity line of credit (HELOC). These options may have lower interest rates than financing with an installer, future opportunities for refinancing and possible tax benefits.
Home equity loans and HELOCs are ways to borrow against the value of your home, converting equity into cash. With a home equity loan, you receive a lump-sum payment and then pay it back at a fixed interest rate over an agreed period of time, typically from five to 30 years. HELOCs are more akin to a credit card, something you use as needed. You’ll usually have 10 years to draw from the line of credit, during which time you only have to pay interest, and after that you pay both the principal and interest. HELOC interest rates typically are variable, meaning your monthly payment could rise or fall over time. And with each of these options, you're using your home as collateral.
Another option is a solar loan. Many banks, credit unions and online lenders offer these to fund solar panels and installation, with amounts typically from $1,000 to $100,000, and annual percentage rates ranging from 6% to 36%. They function like a personal loan: you receive a lump sum and repay it in equal monthly installments over a set period, typically two to seven years. And unlike with home equity financing, there is no collateral required for a solar loan. This means your home or solar panels aren’t at risk if you miss payments, but you may have to pay late fees.
So, yes, you likely can get financing. If you go this route, compare interest rates, terms and fees with any financing package that a solar provider may offer you to ensure you get the best deal.
