Data approachEIA rates · NREL sun hours · 2026 federal policy · methodology
In 2026, going solar in Ohio costs roughly $2.59 per watt before incentives, the 30% federal homeowner tax credit is gone for systems bought after 2025, and Ohio utilities credit exported power at the generation-energy rate rather than the full retail rate. Those three facts, not the weather, now drive whether a system pays for itself.
Ohio’s electricity is relatively cheap. The U.S. Energy Information Administration (EIA) reports an average residential price of 15.99 cents per kilowatt-hour in 2024, well below states such as New York or California. Cheaper power means each kilowatt-hour your panels produce saves less, so payback is longer than in high-rate states.
This guide is rebuilt around verified, source-linked figures. It covers the federal credit change, how Ohio net metering actually works, what the main utilities’ tariffs say, what solar costs today and which incentives remain. Policies change, so confirm details with your utility and a tax professional before signing a contract.
💰 Tax Credit
Is the Federal Solar Tax Credit Still Available in Ohio?
No, not for homeowners who buy their system with cash or a loan in 2026. The One Big Beautiful Bill Act, signed July 4, 2025, ended the 30% residential Clean Energy Credit (Section 25D) for expenditures made after December 31, 2025. Solar and standalone battery purchases both lost the credit.
Three groups still get federal value in 2026:
Homeowners whose systems were completed by December 31, 2025.
Taxpayers carrying forward unused 25D credit from an earlier year.
Companies that own leased or PPA systems, which can still claim a separate commercial credit (Section 48E) and may pass savings to customers, subject to the deadlines and rules in current law.
Because the credit was worth roughly 30% of system cost, its loss lengthens payback for purchased systems. It also makes lease and PPA offers worth comparing, as long as you read the escalator clauses and contract terms carefully. Our solar tax credit calculator can show what applies to your situation.
⚖️ Policy & Net Metering
How Ohio Net Metering Works (and What HB 6 Did Not Change)
Ohio’s investor-owned utilities must offer net metering, and exported power is credited at the energy-only generation component of the utility’s standard service offer, not the full retail rate. The rule is Ohio Administrative Code 4901:1-10-28, set by the Public Utilities Commission of Ohio (PUCO) and updated in its current form in 2019.
In practice:
Solar you consume on site reduces the amount you buy from the grid at your normal rate.
Surplus is credited as a dollar amount on your next bill, using only the generation-energy portion of your utility’s standard service offer. Distribution and other charges are not part of the credit.
Credits carry forward month to month as dollars. Utilities are not required to pay them out in cash.
Municipal utilities and electric cooperatives are not required to offer net metering, although some do.
Competitive retail electric service (CRES) suppliers may offer their own net metering contracts at any price, so shopping suppliers can change your export value.
HB 6 did not create this structure. House Bill 6 (2019) was a subsidy bill for nuclear and coal plants and became the center of a major bribery case. The export-credit method comes from PUCO’s net metering rule. In 2025, House Bill 15 repealed the OVEC subsidies and other HB 6 provisions and ended a limited state solar credit program, but it did not restore full retail-rate net metering and Ohio still has no community solar program.
The practical lesson is simple: every kilowatt-hour you use yourself is worth more than every kilowatt-hour you export. Use our solar net metering calculator with your own utility’s generation rate to see the gap.
⚖️ Policy & Net Metering
AEP Ohio, FirstEnergy and Duke Energy Ohio: Utility Rules
All three major investor-owned utilities follow the same PUCO framework, but their tariffs add their own limits and conditions. Read your utility’s current tariff and interconnection application before you sign.
AEP Ohio (central and southeast Ohio, including Columbus). Its net energy metering tariff says surplus is credited using the generation energy component of the standard service schedule, and credits accumulate as monetary credits on future bills. A facility cannot be sized to produce more than 120% of the customer’s electricity requirements over a rolling 12 months. Credits are lost if you stop taking service. If your meter cannot record two-way flow, you pay to install a bidirectional meter.
FirstEnergy Ohio utilities (Ohio Edison, The Illuminating Company and Toledo Edison). The company’s net metering rider application limits total approved customer-generator capacity to less than one percent of its aggregate customer peak demand and allows it to disqualify generation it considers excessive. Customers bear the cost of any required bidirectional meter. Because the rider reserves discretion over oversized systems, size your array to your actual annual usage rather than to your roof.
Duke Energy Ohio (Greater Cincinnati). The statewide rules above apply to Duke’s Ohio customers. Check Duke’s current Ohio net metering tariff for system limits, interconnection steps and fees, because those details differ from its programs in other states.
Retail prices also vary by area. EnergySage’s June 2026 estimates, based on WattBuy data, put Cincinnati at about 13 cents per kilowatt-hour and Cleveland at about 16 cents. A lower rate means each unit of solar you use saves less.
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📋 Key Insights
Ohio Solar Costs, Payback and Remaining Incentives
EnergySage’s September 2026 data shows an average Ohio installed price of about $2.59 per watt, or $32,938 for a typical 12.71 kW system, with a range of roughly $27,997 to $37,879 before incentives. The federal credit is not included. For a smaller 9 kW system, $2.59 per watt works out to about $23,300 before incentives, though actual quotes vary by installer and equipment.
Data visualization
Ohio solar cost by system size, before incentives. A 9 kW system lands near $23,310 at $2.59 per watt. Source: EnergySage Ohio solar panel costs, Sept 2026 ($/W x system size).
Chart summary: Each bar multiplies EnergySage’s $2.59-per-watt Ohio average by the system size, so a 6 kW system is about $15,540 and a 15 kW system about $38,850. No federal credit is subtracted, because the homeowner credit ended for purchases after 2025. Actual quotes will move up or down with equipment, roof complexity and installer.
EnergySage’s model estimates an Ohio payback of about 11.9 years. Treat that as a benchmark, not a promise. Payback depends on how much of your solar output you use on site, your utility’s rates, system price and financing.
Data visualization
Cumulative cash flow on a $32,938 Ohio system crosses zero near year 12. Assumes flat savings of about $2,761 per year (no escalation, no degradation) implied by EnergySage’s 11.93-year payback. Source: EnergySage Ohio solar panel costs, Sept 2026.
Chart summary: This is an illustration, not a forecast. Dividing the $32,938 average price by EnergySage’s 11.93-year payback implies roughly $2,761 of yearly savings, and the line adds that amount each year from a starting position of minus $32,938. It crosses zero at about year 12 and reaches roughly $36,087 at year 25 before inverter replacement or panel degradation. Rising electricity prices would shorten the payback, while lower on-site use would lengthen it.
Local electricity prices explain much of that payback length, because solar saves you the price of the power you would otherwise buy.
Data visualization
Ohio’s 15.99 cents per kWh is moderate compared with high-rate solar markets. Source: U.S. EIA, Electric Power Annual 2024, Table 2.10 (residential average price).
Chart summary: Ohio’s 2024 average residential price was 15.99 cents per kilowatt-hour, about the same as Illinois (15.87) and Indiana (14.77) and above Kentucky (12.79). It is about two-thirds of New York’s 24.43 and roughly half of Massachusetts (29.35) and California (31.97). Because solar saves you the price of the power you would otherwise buy, an Ohio kilowatt-hour of solar is worth much less than one in those states, which is the main reason payback is longer here.
Incentives that remain in Ohio:
Property tax: Energy facilities of 250 kW or less are exempt under Ohio Revised Code 5709.53, so the added value does not raise your property tax.
Sales tax: Ohio sources generally describe solar equipment as exempt from state sales tax. One 2026 guide notes conflicting guidance, so confirm with the Ohio Department of Taxation.
Local abatements: Cleveland and Cincinnati offer residential property tax abatement programs.
No state income tax credit or rebate: Ohio does not offer one, and HB 15 ended the state’s limited solar credit program.
How to Get the Most From Solar Under Ohio’s Export Credit
Size the system to your annual usage and use as much of the power as possible yourself. Under Ohio’s rules, the energy you use directly offsets your bill, while exports earn only the generation-energy credit.
Right-size the array. Both AEP Ohio’s 120% limit and FirstEnergy’s discretion over excessive generation reward systems matched to your real consumption. Check your last 12 months of usage before accepting a design.
Shift flexible loads to daytime. Running a dishwasher, laundry or EV charging while the sun is up raises on-site use and cuts exports.
Treat batteries as a separate decision. With the federal credit gone for purchased storage, a battery is mainly worth it if you value backup power during outages. Ask installers to show the financial case with and without it.
Compare ownership options. Get quotes for cash, loan and lease or PPA. Because lease and PPA providers may still claim a federal credit, their offers can look different now than they did before 2026, but contract length, escalators and transfer terms matter as much as the monthly price.
Check your supplier. If you buy electricity from a competitive supplier, ask whether it offers its own net metering contract and at what price.
Get at least three quotes and verify each installer’s licensing, warranties and interconnection experience with your utility.
No, not for homeowners who buy a system with cash or a loan. The residential Clean Energy Credit (Section 25D) was ended by the One Big Beautiful Bill Act for expenditures made after December 31, 2025. If your system was completed by that date, you can still claim the 30% credit and carry forward any unused amount. Lease and power purchase agreement (PPA) providers may still claim a separate commercial credit under current law and can pass some savings on, so compare those offers against buying.
Yes. Ohio's investor-owned utilities must offer a standard net metering tariff under Ohio Administrative Code 4901:1-10-28. Solar you use on site offsets your bill directly. Surplus power sent to the grid is credited using the energy-only generation component of the utility's standard service offer, not the full retail rate, and the credit carries forward as a dollar amount on future bills. Municipal utilities and electric cooperatives are not required to offer net metering.
No. House Bill 6 (2019) is best known as the nuclear and coal subsidy bill tied to the Householder bribery scandal. The current export-credit method comes from PUCO's net metering rules, which set the credit at the generation-energy component of the standard service offer and took effect in October 2019. In 2025, House Bill 15 repealed the OVEC subsidies and other HB 6 provisions, but it did not create full retail-rate net metering or a community solar program.
EnergySage's September 2026 data puts the average Ohio installed cost at about $2.59 per watt, or roughly $32,938 for a typical 12.71 kW system, with a range of about $27,997 to $37,879, before any incentives. Its model estimates a payback of about 11.9 years. Your result will differ with your usage, roof, utility, financing and how much of your solar output you use on site, so get several quotes and model your own bills.
Ohio has no state solar income tax credit or statewide rebate. Systems of 250 kilowatts or less are exempt from property tax under Ohio Revised Code 5709.53, which keeps the added home value from raising your tax bill. Ohio sources also describe solar equipment as exempt from state sales tax, though at least one 2026 guide notes conflicting guidance, so confirm with the Ohio Department of Taxation. Cleveland and Cincinnati offer local property tax abatement programs.
Ohio solar by electric bill
See system size and payback for common monthly bills in Ohio.
18.7¢/kWh — Ohio average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
4.3 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
Full retail net metering — solar assumed to offset 87% of the bill. Ohio requires net metering; monthly excess is credited at the generation (supply) rate.
Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.