Solar Panels Cost $6.9k-$16k in Madison County, OH | August, 2025

Ohio offers state real and personal property tax exemptions on large renewable energy devices. Any system built in/after 2010, rated for over 250 kW, and using solar, wind, biomass, or another renewable technology is considered fully exempt for its entire useful life. System parts, structural components, and equipment used to interconnect the system to a utility grid also qualify. As conditions for the exemption, the system owner is required to create a minimum amount of jobs and enter REC purchase agreements with utilities. Systems over 2 MW may be subject to additional requirements.

The Advanced Energy Job Stimulus Fund supports job creation, manufacturing, and renewable energy research and development in the state. Initial funding for the first three years totaled $150 million from the state's general reserves. Funding is awarded to businesses through special bonds completely exempt from state taxes. A bond's amount is based on the applicant's credit history and the projects which will be funded. Small grants may be awarded to startups investing or researching potential disruptive technologies in the energy sector. Additional information is available from the Department of Development website.

In Ohio, sales/use tax exemptions are available for equipment that improves thermal efficiency or converts oil/gas to an alternate sustainable fuel. Equipment used to convert solid waste into fuel may also qualify. To claim the exemption, the facility owner should obtain a certification number through the Ohio Department of Taxation. Additional information is available from the departmental website.

Compliance with solar carve-out provisions of the Ohio Alternative Energy Resource Standard is tracked using a solar renewable energy certificate (SREC) system. An SREC is equivalent to one megawatt hour of electrical capacity. The monetary value of an SREC fluctuates with market forces. Any solar PV, thermal, or HVAC system in Ohio is capable of generating SRECs upon registration with the state Public Utilities Commission. Once registered, utilities may purchase certificates from customers at fair market value to meet their AERS quota. Should a utility fail to meet its SREC quota in a given year, it will pay a "penalty" compliance fee per megawatt hour/certificate it is deficient. Fine revenue supports the Advanced Energy Fund, and it may not be projected onto customers.

New residential/commercial construction or home improvements in Cincinnati may be eligible for property tax abatements if they meet certain sustainability standards. 100% abatements are available for buildings that satisfy (at minimum) LEED Silver requirements and pursue formal accreditation from the US Green Building Council. Abatements last for a minimum of ten years; extensions are available for buildings certified at higher LEED tiers. Special requirements may apply for commercial properties. Abatements are only available up to a fixed maximum value. Additional information is available from the Cincinnati municipal website.

New residential construction or home improvements in Cleveland may be eligible for complete property tax abatements if they meet certain green construction standards. Local assessors will use the Cleveland Green Building Standard as a benchmark, though official LEED Silver and NAHB certifications will also count toward abatement requirements. Abatements cover all property tax liability and may last for 10 - 15 years depending on the type of project. Additional information is available from both the Cuyahoga County Auditor's office and the Cleveland municipal website.

Through the Ohio state treasury's ECO-Link initiative, homeowners in Ohio may be eligible for special energy improvement loans through a variety of banking partners. Qualifying projects include the full breadth of energy efficiency solutions, including windows, insulation/weatherization, central and room HVAC, water heating, large appliances, solar PV arrays, and wind turbines under 100 kW. Only projects approved by a program auditing representative will be approved for funding. Standard credit checks and prior approval from the customer's bank apply. Additional information is available from the Ohio Treasurer's website.

New public and private school buildings in Ohio are required to meet certain green building standards. Should a school meet these standards, it will receive financial assistance from the Ohio School Facilities Commission. At a minimum, buildings should seek to meet the specialty LEED Gold certification for schools, though existing projects may strive for Silver certification. Later amendments to the standards required schools to be "solar-ready." If a new school does not already have rooftop solar PV panels installed, it should be equipped to accommodate a future PV system. Additional information is available from the Ohio Facilities Construction Commission website.

On occasion, FirstEnergy will seek renewable energy project proposals to fortify its renewable energy credit (REC) purchasing portfolio. The utility is interested in both long and short-term purchase agreements to acquire between 5,000 and 20,000 RECs per year. Facilities should seek certification from the Ohio Public Utilities Commission. Additional details on the application process are available from the website.

Ohio homeowners may be eligible for rebates on new solar water heaters from a Green Energy Ohio/Sierra Club initiative. A customer's expected rebate will be based on their system's expected performance. Current base rates are $30/daily kBtu, with a maximum allowable rebate equal to 20% of project costs. To qualify for the rebate, a customer must seek project preapproval from Green Energy Ohio, obtain engineering surveys, and use a participating contractor. Installation can begin six months from preapproval at the latest. The rebate will be awarded after a successful final inspection from both GEO and the customer's local building department. Additional information is available from the GEO website.

All private/municipal utilities and electrical cooperatives in Ohio are required to offer net metering to their renewable energy customers. Any solar, wind, biomass, fuel cell, or landfill gas system qualifies so long as it meets state interconnection standards and its capacity does not exceed customer demands. Net metering participants will have a bidirectional meter installed to measure net excess generation (NEG) sent back to the grid. The utility will issue monthly bill credits for NEG at a fixed avoided-cost rate. Special net metering programs are available for hospitals, who may use conventional or renewable energy technologies.

In 2014, Ohio's utility regulator made amendments to distributed generation and grid interconnection standards. All new renewable energy devices being connected to the power grid will be sorted into one of three capacity levels governing permit processes, fees, review turnaround time, and required IEEE/UL performance and safety specifications. Utilities may require system owners to install external disconnect switches or carry liability insurance, but they are limited to asking for proof of insurance rather than setting a minimum policy amount. Additional information is available from the Ohio Public Utilities Commission website.

Ohio first adopted its mandatory Alternative Energy Portfolio Standard in 2008. All private utilities are required to participate; local public utilities and cooperatives may contribute voluntarily to the standard. Current AEPS goals require at least 25% of the state's retail electricity to be generated using renewable technology by 2025. Carve-out policies require a portion of annual RPS quotas to be met using solar energy. Compliance is measured using a renewable energy credit (REC) system pegging one megawatt hour to a fluctuating dollar amount. All operational renewable energy systems generate RECs, but utilities may purchase credits from customers using net metering or other power purchase agreements. Credits will expire after five years. Should a utility fail to meet its REC quota, it will be assessed a penalty fine for each megawatt hour it is deficient. Fine revenue goes to the Ohio Advanced Energy Fund.