US residential solar · 2026 data

Solar Panels in Ohio

Q: "Does Ohio still have net metering in 2026?"

"Yes, Ohio utilities are required to offer net metering under Ohio Revised Code 4928.67. After HB 6, new residential customers at AEP Ohio, Duke Energy Ohio and FirstEnergy Ohio receive the avoided-cost rate — typically 3–5 cents per kilowatt-hour — for exported surplus rather than the full retail rate of 13–14 cents. Self-consumed solar generation still offsets your bill at the full retail rate, so maximising self-consumption remains the priority for new Ohio solar owners."

Q: "How much does the avoided-cost rate cost me versus full retail net metering?"

"For a typical 8 kW Ohio system exporting 2,500 kWh annually, the difference between a 4-cent avoided-cost credit and a 13-cent retail credit is about $225 per year. Over a 25-year system life, that totals roughly $5,600 in reduced bill savings, though electricity price increases over time partially offset this gap. Your actual loss depends on your utility's quarterly avoided-cost rate, which changes every 90 days."

Q: "Are pre-HB 6 solar customers grandfathered under retail-rate net metering?"

"Generally yes. Customers who completed interconnection before their utility's new tariff took effect — typically 2021 or 2022 depending on the utility — were grandfathered under retail-rate compensation for 25 years from their interconnection date. If you installed solar before 2020, contact your utility directly to confirm your tariff status, your exact grandfathering end date and what happens to any remaining credit balance at that point."

Q: "What is the best way to reduce exports under Ohio's current rules?"

"Shifting high-consumption appliances to daytime hours and adding battery storage are the two most effective strategies. NREL research indicates load-shifting alone can raise self-consumption from roughly 35% to over 55% on a properly sized Ohio system. A 10–13 kWh battery can further cut annual exports by 60–80%, bringing a typical 8 kW system close to 85–90% self-consumption and dramatically reducing the financial impact of Ohio's low avoided-cost export credit rate."

Q: "Is the 30% federal solar tax credit still available in Ohio in 2026?"

"Yes. The IRS Investment Tax Credit for residential solar remains at 30% of total installed costs through at least 2032 under the Inflation Reduction Act. On a $25,000 system, that equals a $7,500 credit applied directly against your federal tax liability in the year of installation. The ITC also applies to co-installed battery storage. Ohio separately exempts solar equipment from state sales tax and exempts added home value from property tax assessment, saving most homeowners an additional $1,500–2,500. *Data sources: U.S. Energy Information Administration (EIA) Ohio electricity retail rates and avoided-cost data, 2024; PUCO net metering tariff filings for AEP Ohio Schedule NEM, Duke Energy Ohio Schedule NM and FirstEnergy Ohio Schedule NEM, 2021–2025; National Renewable Energy Laboratory (NREL) self-consumption rate research; Solar Energy Industries Association (SEIA) Ohio state solar market insight Q4 2023; IRS Inflation Reduction Act guidance on the residential clean energy credit, 2026.*"

SAVE

$0+

Over 25 Years

$18,900 Cost after ITC

18.0 yrs Payback

9.0 kW Typical system

Most homeowners need:

21–25 panels typical
9.0 kW average system
$18,900 after tax credits
18.0 year payback

✓ Updated monthly ✓ NREL data ✓ Reviewed by solar experts ✓ IRS tax credit included

Updated June 9, 2026 · 11 min read ·By Mark Sullivan ·Reviewed by Green Energy Calculators Editorial Team

Calculate My Savings View Ohio Solar Data

Without solar vs with solar

25-year cost comparison for a $300/month US electric bill.

Without solar

25-year utility cost

$44,200

Rates rise ~3% per year (EIA avg.)

With solar

Net system cost

$18,900

After 30% federal ITC

Your savings

Difference

+$25,300

Estimated lifetime advantage

Author Mark Sullivan

Reviewed by Green Energy Calculators Editorial Team

Last updated Jun 9, 2026

Sizing formula kW = Annual kWh ÷ (Peak Sun Hours × 365 × 0.82)

Ohio ranks among the top 20 states for solar installations, yet its net metering policy is one of the most contentious in the country — and that gap matters if you are sizing a system today. House Bill 6, signed in 2019 and heavily scrutinised in subsequent years, did not eliminate net metering outright, but it opened the door for Ohio’s three dominant investor-owned utilities — AEP Ohio, Duke Energy Ohio and FirstEnergy subsidiaries Ohio Edison, The Illuminating Company and Toledo Edison — to pay solar owners at the lower “avoided-cost” rate rather than the full retail electricity rate. For a typical 8-kilowatt residential system, that distinction can shift your payback period from roughly 9 years to 13 years or more.

The avoided-cost rate in Ohio generally tracks wholesale power prices, which the EIA has reported at roughly 3–5 cents per kilowatt-hour in recent years, compared to the average Ohio retail rate of about 13–14 cents per kilowatt-hour as of 2024. Exporting surplus solar power under avoided-cost compensation therefore earns less than a third of what full retail net metering would provide. Understanding which utility you are under, what tariff applies and how to minimise exports is now the central financial question for any Ohio homeowner considering solar.

Ohio does still require utilities to offer net metering under Ohio Revised Code 4928.67, and the Public Utilities Commission of Ohio (PUCO) continues to set the rules. But “net metering” in Ohio today is not the same product it is in states like New York or California, where full retail credit is still the baseline. This guide breaks down the current rules by utility, explains how to calculate your real returns under each scenario and identifies strategies that can cut your effective export losses significantly.

How HB 6 Reshaped Ohio Net Metering Compensation

Before HB 6, Ohio net metering operated under a straightforward retail-rate credit framework: every kilowatt-hour your panels pushed onto the grid offset one kilowatt-hour on your bill at the full retail price. That model meant system sizing was relatively simple — you could install enough capacity to zero out your annual consumption with confidence the math would hold.

HB 6 was primarily written as a nuclear plant bailout, but Section 5 of the bill allowed utilities to petition PUCO to change the compensation rate for new net metering customers. AEP Ohio was the first to act, filing a tariff in 2020 that moved new residential net metering customers to an avoided-cost credit for exported electricity rather than retail-rate credit. PUCO approved a modified version of that tariff in 2021. Duke Energy Ohio followed with its own filing, and FirstEnergy’s Ohio subsidiaries have operated under a similarly tiered structure. Customers who enrolled before the tariff changes were generally grandfathered under retail-rate compensation for a fixed term, typically 25 years from their interconnection date, but new applicants face the new terms.

The practical result: an Ohio homeowner in AEP service territory exporting 3,000 kWh per year under avoided-cost compensation at 4 cents earns $120 in annual credits. Under the old retail-rate model at 13 cents, those same exports would have been worth $390 — a difference of $270 per year. Over a 25-year system life, that is roughly $6,750 in lost value, though electricity price escalation over time moderates that number somewhat. Running your specific numbers through a solar net metering calculator that lets you enter the actual credit rate your utility offers is far more precise than any rule-of-thumb estimate.

The political aftermath of HB 6 was significant. Former FirstEnergy lobbyists and executives were implicated in the largest bribery scandal in Ohio history in connection with the bill’s passage. By 2023, Ohio legislators had passed HB 6 amendments, and the legislature considered — though had not enacted as of early 2026 — a full restoration of retail-rate net metering. PUCO proceedings on the matter remained active, so the rules described here should be verified against current tariff filings before you sign a solar contract.

AEP Ohio Net Metering: Credit Rates and System Size Limits

AEP Ohio serves roughly 1.5 million customers across central and southern Ohio, including Columbus and surrounding counties. Under AEP’s current residential net metering tariff — Schedule NEM — new customers receive retail-rate credit for energy consumed behind the meter (self-consumption) and avoided-cost credit for any surplus exported to the grid. The avoided-cost rate is set quarterly and has ranged between 3.2 and 5.1 cents per kilowatt-hour in recent filings.

AEP Ohio caps residential net metering systems at the lesser of 25 kilowatts AC or the customer’s average 12-month peak demand. For most single-family homes, the practical ceiling sits around 10–12 kW, which comfortably covers average residential consumption of roughly 900 kWh per month. AEP requires interconnection applications to be submitted through its online portal and typically takes 30–45 business days to approve residential systems. The application fee is $100 for systems under 10 kW.

One significant feature of AEP’s tariff is the monthly carry-forward of net metering credits. Excess credits accumulate from month to month but are zeroed out annually each April. Any remaining credit balance at the April true-up date is paid out at the avoided-cost rate, not the retail rate. This annual reset means oversizing your system — installing more capacity than you will self-consume — is penalised more sharply under AEP’s tariff than it would be in a full retail-rate state.

A well-sized 8 kW system on an AEP account consuming 10,800 kWh per year in Columbus, with about 900 kWh of annual surplus, would see roughly $36–46 in avoided-cost credit at the April true-up, compared to $117 under retail-rate rules. That delta directly extends your solar payback period, and it is worth modelling carefully before you lock in a system size.

Grouped bar chart comparing net metering credit rates for AEP Ohio, Duke Energy Ohio and FirstEnergy Ohio in 2026 — **Ohio net metering credit rates vary sharply between self-consumption and export.** Self-consumed solar earns the full retail rate of 13–14¢/kWh at all three utilities, while exported surplus earns only 3.8–5.1¢/kWh under current PUCO-approved avoided-cost tariffs. Source: PUCO tariff filings, EIA 2026.

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Duke Energy Ohio: Tariff Rules for Greater Cincinnati Homeowners

Duke Energy Ohio serves about 700,000 electric customers, primarily in the southwestern part of the state including Greater Cincinnati. Duke’s residential net metering tariff, Schedule NM, mirrors the general HB 6 structure: self-consumed solar offsets retail-rate consumption directly, while exported surplus is credited at Duke’s avoided-cost rate, which has tracked between 3.5 and 5.0 cents per kilowatt-hour in recent quarterly filings.

Duke Energy Ohio allows residential net metering systems up to 25 kW AC, with a practical limit tied to the customer’s average annual consumption. Duke’s interconnection timeline is among the shorter of the three major Ohio utilities, averaging 20–35 business days for standard residential applications under 20 kW. The application fee is $50 for systems under 10 kW. Duke does not charge a special net metering tariff rider or additional monthly fee for net metering participants, which is a meaningful distinction from some utility structures in other states.

One detail specific to Duke Ohio: the utility calculates net metering on an hourly interval basis for customers on its time-of-use rates. For homeowners who have opted into Duke’s Smart Saver or TOU plans, the value of self-consumed solar shifts depending on the time of day. Solar production that coincides with on-peak hours — typically weekdays 2–7 p.m. — offsets consumption that would otherwise cost 18–22 cents per kilowatt-hour under Duke’s on-peak rate, significantly boosting the effective return on self-consumption.

Pairing a battery with your solar installation can extend the hours of self-consumption into the evening peak window. A 10–13 kWh battery captures afternoon surplus and discharges it during evening on-peak hours, turning the hourly TOU calculation in your favour. Modelling the interaction between battery storage and your specific Duke rate schedule can reveal whether the added capital cost of roughly $10,000–14,000 post-ITC justifies the improved bill offset. Duke Energy Ohio’s avoided-cost credit at the annual true-up, like AEP’s, is paid out in cash rather than carried indefinitely. Homeowners in Duke territory should design their solar system to target 95–100% self-consumption to avoid stranding value at the annual April reset.

FirstEnergy Ohio Subsidiaries: Ohio Edison, Illuminating and Toledo Edison

FirstEnergy operates three electric distribution utilities in Ohio: Ohio Edison in the northeast, The Illuminating Company serving Cleveland and Toledo Edison in the northwest. Together they serve approximately 1.6 million Ohio customers. All three operate under a unified net metering tariff structure, Schedule NEM, approved by PUCO, though minor rate details differ by subsidiary.

The FirstEnergy Ohio avoided-cost rate has ranged from 3.8 to 5.3 cents per kilowatt-hour over the past 24 months, slightly higher on average than AEP and Duke due to regional capacity market pricing in PJM’s northern zone. Retail rates for FirstEnergy customers vary by subsidiary: Ohio Edison averages about 14.1 cents per kilowatt-hour all-in, Illuminating Company customers average 13.8 cents and Toledo Edison is slightly lower at 13.2 cents as of 2024 EIA data. The spread between retail and avoided-cost rates is somewhat narrower in FirstEnergy territory than in AEP territory, which modestly improves the economics of exporting surplus.

FirstEnergy Ohio caps residential net metering at 10 kW AC for Ohio Edison and Illuminating Company customers and 25 kW AC for Toledo Edison customers — a significant difference that limits solar system sizing in the Cleveland metro area. Interconnection applications typically take 30–60 business days. FirstEnergy charges a $75 application fee for systems under 10 kW and requires a separate meter socket for bidirectional metering in many service areas, adding $100–300 to installation costs depending on the electrical panel configuration.

Homeowners in Pennsylvania near the Ohio border served by FirstEnergy’s Pennsylvania subsidiaries — Met-Ed, Penelec and West Penn Power — operate under Pennsylvania’s retail-rate net metering law, which is meaningfully more generous than Ohio’s current structure. This geographic difference in solar economics across a single utility holding company illustrates why state policy matters more than utility brand when modelling your solar returns. Entering your specific utility rate, avoided-cost credit rate and annual consumption into a solar savings tool will give you a far more accurate picture than any state-average estimate.

Strategies to Maximise Solar Returns Under Ohio’s Avoided-Cost Rules

Given the wide gap between Ohio’s retail electricity rates and the avoided-cost credits utilities pay for exports, the primary financial strategy for Ohio solar owners is to maximise self-consumption and minimise exports. This is a different approach from full retail-rate states like Massachusetts or New Jersey, where export value equals import value and you simply want to zero out your annual bill. For more on this topic, see our guide to Solar Panels in Hawaii.

Self-consumption maximisation in Ohio starts with accurate load profiling. Shifting high-consumption appliances — dishwashers, washing machines, pool pumps, EV charging — to daytime hours when your panels are producing reduces the fraction of generation that flows to the grid. Smart home energy management systems can automate this shift, though their payback period varies by household. NREL research suggests that active load-shifting can increase self-consumption rates from a typical 30–40% on a well-sized system to 55–65%, meaningfully improving the economics in an avoided-cost regime. For more on this topic, see our guide to Solar Panels in Virginia.

Battery storage is the other major lever. A 10–13 kWh battery system can capture afternoon solar surplus and discharge it during evening peak hours, cutting annual exports by 60–80% for average Ohio households. At current Ohio avoided-cost rates, a battery adds roughly $800–1,200 per year in avoided export losses against an installed battery cost of $10,000–14,000 after the 30% federal Investment Tax Credit. That implies a standalone battery payback of 10–14 years in Ohio — marginal on its own, but more attractive when combined with backup power value during grid outages or when modelling rising electricity prices over a 25-year horizon.

The federal solar Investment Tax Credit (ITC) remains the most important incentive available to Ohio homeowners in 2026. The IRS allows a 30% credit on the full installed cost of a residential solar-plus-storage system, with no cap on system size. On a $25,000 solar installation, the ITC reduces your federal tax liability by $7,500 in the year of installation, cutting the effective system cost to $17,500 before any state incentives. Ohio does not offer a state-level solar income tax credit, though property tax exemptions for solar installations and a sales tax exemption on solar equipment both apply statewide, together saving a typical homeowner $1,500–2,500. SEIA data shows Ohio added 285 MW of residential solar in 2023, a 22% increase over 2022, confirming that even under constrained net metering rules the combined federal incentive and falling hardware costs continue to make solar financially viable. To see how all these figures apply to your specific address and utility, enter your system cost, credit rate and annual usage into a solar system size calculator before committing to a quote.

Frequently asked questions

Direct answers for US homeowners in Ohio.

Does Ohio still have net metering in 2026?

Yes, Ohio utilities are required to offer net metering under Ohio Revised Code 4928.67. After HB 6, new residential customers at AEP Ohio, Duke Energy Ohio and FirstEnergy Ohio receive the avoided-cost rate — typically 3–5 cents per kilowatt-hour — for exported surplus rather than the full retail rate of 13–14 cents. Self-consumed solar generation still offsets your bill at the full retail rate, so maximising self-consumption remains the priority for new Ohio solar owners.

How much does the avoided-cost rate cost me versus full retail net metering?

Are pre-HB 6 solar customers grandfathered under retail-rate net metering?

What is the best way to reduce exports under Ohio's current rules?

Is the 30% federal solar tax credit still available in Ohio in 2026?

Ohio solar by electric bill

See system size and payback for common monthly bills in Ohio.

$200 $200/month electric bill Panels · cost · payback → $300 $300/month electric bill Panels · cost · payback →

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Popular utility companies

Solar rules and net metering vary by utility — not just by state.

AEP Ohio Central & south Duke Energy Ohio Cincinnati FirstEnergy Northern OH AES Ohio Dayton Toledo Edison Northwest Ohio co-ops Buckeye Power

Methodology & data sources

Calculation method: System size uses NREL PVWatts derate factor (0.82). Costs based on SEIA 2026 installed cost ($2.75–$3.20/W). Payback uses net cost after 30% federal ITC (IRC Section 25D). Savings assume full-retail net metering unless noted.

Official sources: EIA state electricity rates · NREL PVWatts · Energy.gov ITC guide · DSIRE incentives · SEIA market data · IRS Publication 5695.

All figures are estimates for educational purposes — not tax, legal, or investment advice. Consult a licensed installer and CPA for your situation.