How does solar work for me in Ohio?
If you’re looking to go solar in Ohio, you probably have a lot of questions. The industry has changed quite a bit over the years, and many people want to understand how it works and how much it costs. For those that qualify for federal and state tax incentives (Do I Qualify?), as well as good financing options, the answer is pretty simple. Basically, what we are able to do is help people trade their current electrical bill for a solar bill that is as much, if not less, than their current electric bill, and for nothing out of pocket.
The major benefit of having solar, is that after you’ve paid off your solar panels, you now own 100% of your power and don’t have any bill at all. Many people in Ohio choose to go solar for the same reason they choose to own their home, instead of renting. Why spend thousands of dollars a year on something you will never own, when for the same cost, you could invest in an asset that will not only pay for itself in a few short years, but that will permanently eliminate a recurring monthly bill once it’s paid off?
Again, this is generally how it plays out for those who qualify for the available tax credits and good financing. For those who don’t, going solar may look a little different. That’s why, before you spend too much time digging into solar, We recommend finding out if you qualify for these incentives.
Ohio Solar Incentives
Tax Credits are the primary way that the federal government incentivizes people to go solar. The way they work is pretty simple. Rather than giving you cash to help cover the cost of your system, you get a tax break at the end of the year equal to the value of the incentive, that can then be used toward your new solar system.
Federal Tax Credit (ITC): For 2023, this incentive is valued at 30% of the cost of your new solar system. If you’re a taxpayer with a decent tax liability, you will likely be able to capture all of this incentive in the first year.
Net Metering: This incentive speaks to a large misconception about going solar in Ohio. When you go solar, you aren’t actually going “offgrid” or disconnecting from your electrical provider. But, much like storing unused electricity in batteries, your electrical provider will generally allow you to store your electricity with them in the form of credits.
Your current electrical meter is likely a one-way meter, meaning it only measures how much electricity is being pulled from the electrical grid to your home.
When you install a solar system, a Net Meter will replace your current electrical meter, allowing a two-way flow of electricity. This means it will measure the amount of electricity pulled from the grid, as well as the electricity sent back to the grid from your home. When your solar panels produce more electricity than your home needs, a net meter allows you to send electricity back to the grid and store it there in the form of credits. Your meter will actually run in reverse, and will build up electrical credits for you to use later. That way, during time periods when your panels are under-producing, such as night or snowy conditions, you can use those credits and still receive free electricity.
