Ohio Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Ohio homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,020 in Ohio, that's a direct tax credit of $4,806. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Ohio does not currently offer a state-level solar tax credit. However, Ohio homeowners still benefit from the substantial 30% federal ITC, worth $4,806 on a typical 6kW system. Even without a state credit, solar is economically attractive in Ohio with electricity rates averaging 16.96¢/kWh — well above the national average.

Ohio has an active SREC market through the Ohio SREC market (low value, market-based) program. For every megawatt-hour (MWh) of solar electricity your system produces, you earn one SREC that can be sold to utilities for approximately $5/MWh.

A 6kW system in Ohio produces approximately 6.5 MWh per year, earning you roughly $32/year in SREC revenue. Over 25 years, that's an additional $807 in income on top of your electricity bill savings. SREC values fluctuate based on supply and demand, so actual earnings may vary.

Great news for Ohio homeowners: Solar energy systems are exempt from property tax assessments. Local option — varies by municipality Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with Ohio's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

Ohio exempts solar energy equipment from state sales tax. On a 6kW system costing $16,020, this saves you approximately $1,041 at the point of purchase. This is an immediate, upfront savings that reduces your out-of-pocket cost before even accounting for tax credits.

Net metering policy: Full Retail Rate. Net metering available; monthly netting The current system size cap is 25 kW.

Ohio's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 16.96¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

Ohio has a mandatory Renewable Portfolio Standard (RPS) target of 8.5% by 2026 (reduced from 12.5% via HB 6). This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.