Federal Solar Investment Tax Credit Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

Solar Renewable Energy Credits (SRECs) Ohio incentivizes homeowners to go solar by offering Solar Renewable Energy Credits (SRECs). You can earn SRECs for all the energy your system generates, and you can sell them for a profit. For every 1,000 kilowatt-hours (or 1 megawatt-hour) of electricity your solar panels produce, you will be awarded one SREC, the prices of which fluctuate based on supply and demand.

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. In Ohio, the energy you produce is credited at the energy rate of the electric utility’s standard service offer. Net metering customers are not credited for distribution or transmission services provided by the electric utility.

Ohio Sales Tax Exemption In Ohio, no sales tax will be added to the purchase of your solar system.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.