The typical cost for solar panels in Ohio was $31,944 in the second half of 2023 before incentives, according to data from EnergySage. That’s slightly lower than the national average of $34,122. The average system size in Ohio was 11.6kW, the same as the national average.
While Ohio offers some solar incentives, they’re relatively modest compared to some states.
Solar costs in Ohio at a glance
Typical cost of home solar system before federal solar tax credit
Typical cost of home solar system after federal solar tax credit
Source:
EnergySage
, a solar and home energy product comparison marketplace founded in 2012. Data is from the second half of 2023.
Costs and trends in Ohio
Ohio residential solar customers paid $2.75 per watt for solar panel systems in the second half of 2023, according to EnergySage. This was slightly lower than the national average of $2.96 per watt. Ohio households use 727kWh a month on average, slightly higher than the national average.
In 2023, prices held steady between the first and second half of the year, at $2.75 per watt. But high interest rates have made
financing solar panels
in Ohio more costly, reducing overall demand.
Solar policy in Ohio
Ohio has enacted various legislative policies that promote adopting renewable energy as part of the overall energy supply.
In 2008, the state enacted legislation including an Alternative Energy Portfolio Standard, AEPS,
[0]
Solar renewable energy certificates (SRECs)
Ohio has offered a solar renewable energy certificate (SREC) market since 2009, where every 1 megawatt-hour of renewable energy generates 1 SREC, a certificate that can be bought or sold. To earn these certificates, you must register with the Public Utilities Commission of Ohio.
[0]
SRECs have traded in Ohio between $3 to $5 in recent years. Even if you earned an SREC every month for a 10kW system, this would yield only about $60 a year.
However, your Ohio solar panel system could be registered to sell SRECs in Pennsylvania, where a single SREC has been selling for around $35.
Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.
Net billing
In Ohio, “most investor-owned utilities will have avoided-cost or wholesale-cost net billing,” says TJ Lindquist, partner at Vespa Solar, a solar installer in Columbus, Ohio. Net billing is a billing convention that allows you to sell excess solar energy back to your utility at a rate that’s lower than the retail cost of energy. The avoided-cost or wholesale-cost rate refers to the reduced dollar amount your utility credits back to you.
Generally, under net billing in Ohio, “30-40% of what they’d charge you is what they’ll credit,” says Lindquist.
This arrangement translates to fewer long-term electricity savings than one-to-one
net metering
, a billing convention that credits you for excess solar produced at retail rates.
Solar equipment sales tax exemption
Solar equipment in Ohio is exempt from sales tax, which might save you a few hundred dollars.
[0]
—
In conclusion, solar energy in Ohio presents a promising opportunity for residents looking to reduce their carbon footprint and save on energy costs in the long run. Despite facing some challenges such as high interest rates on financing and modest solar incentives compared to other states, Ohio’s solar policy landscape is gradually evolving to support the adoption of renewable energy sources.
Net billing practices in Ohio, while not as advantageous as one-to-one net metering, still offer homeowners the opportunity to benefit from selling excess solar energy back to utilities. Additionally, the sales tax exemption on solar equipment in Ohio provides a financial incentive for residents to invest in solar panel systems.
While the SREC market in Ohio may not yield significant savings currently due to oversupply and low prices, exploring opportunities to sell SRECs in neighboring states like Pennsylvania could potentially lead to more lucrative returns for Ohio solar panel owners.
Overall, as the cost of solar panels in Ohio remains competitive and the state continues to implement policies to promote renewable energy, the future looks bright for solar energy adoption in the Buckeye State. Stay informed on the latest trends and developments in sustainable energy by visiting DeFi Daily News for more insightful articles and updates.
Source link
