Renewable Portfolio Standards
In Ohio, the Renewable Portfolio Standards (RPS) mandate that 12.5% of all the state’s energy come from renewable sources by 2026. Utilities will have to pay fees if the standards are not met, so there is strong incentive in Ohio for utilities to offer solar incentives.
Solar carve-outs require a certain percentage of a state’s renewable energy to come from solar by a certain deadline. The solar carve-out in New Hampshire is a modest 0.5% by 2024.
The state is No. 18 in the country for electricity costs, making going solar more financially rewarding.
Strong net metering laws are an asset in Ohio. Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility, allowing customers to offset the cost of the power they draw from the utility with credits they earn on their own production. If your system produces more energy than you need, the excess power is sold to the grid, which you see as a credit on your power bill.
Interconnection standards are requirements for connecting solar and other electrical generation systems to the grid. In Ohio they are statewide, clear, and well thought out. These standards make installation easier and usually less expensive, and net metering is more reliable too.
Performance-Based Incentives (PBI)
PBIs are incentives based on the actual power your system generates. The ones in Ohio are called Solar Power Performance Payments. You get paid based on the number of kilowatt-hours (kWh) or BTUs generated by your home or business solar power system. The electricity produced is credited as Solar Renewable Energy Credits (SRECs), the value of which fluctuates by the rule of supply and demand.
Property Tax Exemption
In Cleveland and Cincinnati, the value of your home will not be reassessed after the addition of a solar system. You keep paying property tax based on the value before adding the system. Commercial solar systems, on the other hand, enjoy this property tax exemption statewide.
Sales Tax Exemptions
Ohio offers sales tax exemptions. Homeowners and businesses pay no state sales tax on their solar panel system. That’s a 5.75% savings for Ohio home and business owners right from the start!
Federal Tax Credit
On top of these great Ohio rebates and exemptions, you also qualify for the hefty tax credit from the Federal government. The Investment Tax Credit (ITC) is worth 26 percent of the system cost, and will be deducted from your Federal income tax. The credit goes to those who buy their system (cash or loan), not to those who lease. If you lease a system, incentives go to the third-party owner. That’s a great reason to buy, not lease!