Ranked 28th nationally in installed solar capacity in 2019, Ohio lost its momentum in the market after a two-year freeze was placed on the state’s benchmarks for renewable energy and energy efficiency in 2014. Despite recommendations of an indefinite freeze on the benchmarks, Ohio’s Renewable Portfolio Standard (RPS) states that 12.5 percent of all energy must come from renewable by sources by 2026, 0.5 percent of which must come from solar panels.
Ohio’s Solar Power
Report Card
To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:
- Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
- Electricity Rates from the U.S. Energy Information Administration;
- Renewable Energy Policy from NC Clean Energy Technology Center;
- Interconnection Ease from Freeing The Grid;
- Photovoltaic Potential from the Energy Department
We determined a rank from one to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.
Incentives & Rebates, 40%
Electricity Rate, 15%
Renewable Energy Policy, 30%
Interconnection Ease, 5%
Photovoltaic Potential, 10%
How Much Does Electricity Cost in Ohio?
The cost of residential electricity in Ohio averages $0.118 per kWh. That figure is less than the national average of $0.13 per kWh, electricity in the Buckeye State has gone down in recent years and is less expensive than much of the country, according to the U.S. Energy Information Administration. Lower electricity prices may discourage Ohio residents to turn to solar energy, stifling industry growth, and sustainability.
Cost of Residential Electricity in Ohio
Data from U.S. Energy Information Administration
*as of Q3 2015
Ohio Solar:
Library of Resources
Ohio Solar Panel Incentives
Currently, utilities don’t have the incentive to drive solar energy support because they lose money when homeowners use less electricity. Fortunately, homeowners in Ohio will find there are still some incentives for them to make the switch.
REBATES/INCENTIVES
Solar Renewable Energy Certificates, or SRECs, were created to help Ohio to achieve its goal of 0.5 percent solar power generation by 2026. Retail suppliers of electricity have to buy or generate SRECs to remain in compliance, or they must make Solar Alternative Compliance Payments for shortfalls in their purchases of SRECs. The SREC prices differ based on the market, and these certificates last for five years following their initial purchase.
Ohio law permits owners of properties to borrow funds to cover energy improvement costs, including those tied to solar PV system installations. The amount lent is usually repaid through a special property assessment over the course of a few years. The low-interest loan has a term of 30 years.
Low-cost financing is available for solar PV system installations at Ohio businesses with fewer than 500 employees. The loan limit is usually $1 million, be increased depending on a case-by-case basis. There must be a 15 percent decrease in energy usage as a result of the solar energy project.
The program allows homeowners in Ohio to receive a lower rate for financing solar PV system installations. Any qualifying homeowner can receive a rate reduction of three percent via participating banks. The reduction is available for up to $50,000 for seven years of each loan.
None for commercial specifically
POLICIES
According to Ohio law, an electric distribution utility in the state must provide net metering to a customer who generates solar energy. No capacity limits have been stated for individual net-metered power systems. Excess energy generation is credited to the next bill of a customer, and the customer can ask for payments for excess generation following a 12-month billing cycle.
Based on Ohio’s interconnection standards, there are three levels for connecting solar PV systems (up to 20 MW) to the electric grid. At Level 1, the review procedure is simplified for inverter-based distributed generators, with a nameplate capacity that is 25 kW or less. For Level 2, review procedures are expedited; this level is designed for systems up to 5 MW. Level 3 is designed for systems as large as 20 MW.
This fund is currently being utilized to fill funds that are actively lending, including the Energy Loan Fund. The fund has been used to provide grants for solar PV projects.
Ohio law permits the creation of solar easements to protect and maintain appropriate access to sunlight for solar PV power systems. These easements have to be executed in writing.
None for residential specifically
None for commercial specifically
TAX CREDITS
None for residential/commercial specifically
None for commercial specifically
None for residential specifically
EXEMPTIONS
None for residential/commercial specifically
None for residential specifically
According to Ohio law, solar PV projects in the state are exempt from real property taxes and personal property taxes. Systems that are larger than 250 kW are eligible for this exemption (property taxes were replaced by “payments in lieu” that are based on factors such as facility type and size). Systems that are 250 kW and less are also exempt from taxes.
Ohio Companies, Contractors & Installers
More than $670 million has been invested in Ohio solar installations. With more than 300 companies providing solar energy services in the state, consumers need to do their research before choosing an installer. When making a decision, Ohioans should ask how long each company has been in the solar business and about the size and scope of prior installation projects.
The following list of Ohio solar energy companies can help you start your search for a solar contractor or installer.
Dovetail provides solar thermal and solar electric systems for new and established constructions.
Where it operatesAll across Ohio, with HQ in Cleveland
Year of opening1995
Ecohouse Solar helps its customers with financing, designing, permitting and installing solar energy systems to their homes and small businesses.
Where it operatesColumbus
Year of opening2008
Go Green 4 Power supplies Northwest Ohio with both on- and off-grid solar PV systems.
Where it operatesHolgate
Year of opening2009
Hyperion specializes in creating and installing custom solar energy systems for residential and commercial buildings.
Where it operatesBellville
Year of opening2012
Mariner offers design, consultation, and installation services to Ohio residents looking to add solar panels to their homes and businesses.
Where it operatesMedina
Year of opening2005
Paradise Energy Solutions offers solar panel systems for businesses, houses and farms.
Where it operatesSugarcreek
Year of opening2009
Red Hawk doesn’t just install their solar energy systems; the engineer and fabricate them. The company offers various types of solar panel systems, including hybrid solar systems.
Where it operatesPataskala
Year of opening2004
This electrical construction company offers solar PV system design and installation to Ohio residents.
Where it operatesColumbus
Year of opening1975
SolarMax Inc. is a solar PV installer that has completed solar projects throughout Ohio, most recently in Medina County. The company offers full-service solar system services including solar analysis, design, and installation, as well as obtaining all required permits. SolarMax uses SolarWorld panels and Enphase microinverters.
Where it operatesBrunswick
Year of opening2009
Stoneacre specializes in alternative energy solutions, including solar PV, ventilation and thermal systems.
Where it operatesToledo
Year of opening2004
Third Sun helps bring solar energy to agriculture, businesses, homes, government and organizations. The company also offers financing solutions.
Where it operatesAthens
Year of opening1997
YellowLite’s focus is on providing different solar energy options for residences, businesses, and nonprofits. They offer many different designs and brands to suit different solar energy needs.
Where it operatesCleveland
Year of opening2009
Other Resources
Take a look at the following list for additional information on solar energy in Ohio.
Search for solar energy policies and incentives offered to residences in the state of Ohio.
Access fact sheets on renewable energy and energy efficiency, search for solar energy installers and explore a database of Ohio incentives.
Learn about energy efficiency and conservation, sources and forms of energy, and the economic and environmental impact of energy use.
Find out how to contact legislators and stay abreast of pending legislation that affects the solar energy industry.
Stay informed about the regulation of electricity rates and services of public utilities in Ohio.
Locate energy statistics for the state of Ohio from the U.S. government including consumption estimates by source and sector.