Solar Panels in Ohio: Cost and Savings

The cost of solar panels in Ohio averages about $3.41 per watt, according to Find Energy. The state’s typical home solar panel system is 8 kilowatts (kW), totaling $27,280. The total system price can vary depending on a number of factors impacting the cost, including:

• The size of the installation
• The brand of solar panels
• Local labor and permitting fees
• The condition of your roof
• Any needed solar inverters
• Any solar battery backup systems

The following table shows a range of costs depending on different system sizes at Ohio’s price per watt of $3.41.

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The upfront cost of solar panels can represent a major hurdle for many homeowners. The good news is that Ohio solar incentives can help make the installation price more affordable.

When considering a solar power purchase, the most important tax credit to know about is the Residential Clean Energy Credit. This federal program credits 30% of your solar system costs when you file your tax returns. The credit, which has no upper limit, applies to systems installed from the beginning of 2022 to 2032 before it begins decreasing and eventually expires in 2035. Here are several other major incentives and rebates available to Ohio residents:

Solar incentives in Cleveland

Cleveland residents who purchase solar panels can benefit from a tax abatement program. This program eliminates 100% of any property tax increases from adding solar for 15 years. To qualify, your system must be properly permitted and meet the city’s Green Building Standard. Residents and developers must submit their applications by November 1 of the year following installation. This program helps Cleveland residents go solar without facing extra costs.

Solar incentives in Cincinnati

Cincinnati residents who add solar panels to their homes don’t have to worry about increased property taxes — the city offers a 100% tax abatement program for up to 15 years on residential renovations. To qualify, you must submit your application online and pay a $250 application fee. This program helps homeowners go solar in Cincinnati while avoiding increased property taxes.

Solar panel setup

Panels aren’t the only components of a solar system setup. To get your solar panel roof installation functioning properly, you’ll need racks to mount the solar panels, a solar inverter to convert the power from direct current (DC) to alternating current (AC), and a solar battery for backup storage if you want extra energy independence. 

You’ll also need to compare the best solar panels to find the right fit for your home. Once you’ve selected an installer with reputable materials, you’ll need to consider whether you want to buy your system up front with the help of tax credits and incentives or opt for an alternative financing arrangement.

Although finding the best solar panels in 2023 is important, choosing a solar installer is one of the most critical decisions you’ll make in the process of planning for solar panels in Ohio. Choose Energy partners with many reputable installers across the country. Call the number on your screen to connect with a solar energy expert.

Despite the large upfront investment, installing solar in Ohio can lead to long-term electricity savings. Ohio electric bills may vary, but the current monthly average bill costs $130.80, which is approximately $1,569 in electric costs per year.

At this rate, it would take you about 12 years to recover the installation costs of a $27,280 solar power system. Considering that the average lifespan of solar panels is 25 to 30 years, you could save thousands each year and avoid increasing electricity bills once you recover your initial solar costs. Adding solar panels can also increase the value of your home by an average of $15,000, according to the Department of Energy (DOE).

Beyond the benefits of lower energy costs and long-term return on investment, solar panels offer more energy independence, bringing predictability and security into your life in Ohio. Energy independence allows you to rely less on the traditional power grid, protecting your household from market price spikes. You can also add a solar battery backup to store excess power to use during outages or when the sun is not shining.

Solar panels are a significant investment, and several factors must be considered to make the right decision for your home.

• Roof angle: The angle of your roof can significantly impact how effective your panels are. Roofs between 15 and 40 degrees are generally considered optimal. 
• Shading: Consider the tree coverage in your area, the direction your home is facing, and whether your roof receives enough direct sunlight during the day for your solar panels to generate power efficiently.
• Roof condition: The condition and age of your roof will determine whether you can install solar panels or need roof repairs or a replacement beforehand. Roof work will add to the total overall cost of going solar.
• HOAs: Check with your homeowner’s association (HOA) to determine whether it has any rules impacting where you can place your panels. Your solar installer can help you navigate neighborhood restrictions.

How should I pay for my solar panels?

While the upfront cost of solar panels is a big investment, there are various financing options to pay for solar. You can buy your system, enter a power purchase agreement, join a community solar program, or lease solar panels. You’ll save the most money over time if you purchase your solar panels instead of leasing. Here’s a breakdown of the pros and cons of each option.

Ohio residents can choose from 231 solar companies when searching for an installer to complete their solar project. Here are some of the top installers in Ohio to consider when choosing a solar company.

The world contains a finite amount of fossil fuels, and we’re quickly using up the ones that are easiest and cheapest to access. Solar energy is a form of renewable energy — using it doesn’t deplete resources. Once manufactured, solar panels do not emit greenhouse gasses such as carbon dioxide.

Although Ohio is not a current leader in the solar industry, the state is making significant strides. The SEIA expects Ohio to rise from 26th in the country for solar generation to seventh in the next five years, adding over 8,000 megawatts of solar power.

How many people use solar energy in Ohio?

There is currently enough solar installed to power more than 117,000 homes in Ohio.

What is the life expectancy of solar panels in Ohio?

Solar panels generally last between 25 and 30 years. To help your panels reach optimum life expectancy, you must keep them serviced and follow all recommended maintenance steps. 

Is it better to buy or lease solar panels?

Buying solar panels requires a higher upfront cost but leads to long-term financial benefits. After a certain period, your panels will have paid for themselves in lower energy bills. Leasing reduces your upfront costs, but you will never own your panels and can’t access federal and state incentives. Overall, purchasing solar panels will lead to the most cost savings.

What percentage of Ohio energy production is solar?

Right now, Ohio’s energy production is not primarily solar, with only about 1% of all electricity coming from solar power sources. However, as solar installation grows in Ohio, that percentage will likely increase.

Are solar panels a good investment in Ohio?

Yes, solar panels are a good investment in Ohio. With abundant sunshine and a lower-than-average installation cost, Ohio offers opportunities to save more with solar while going green. You could recover your installation costs and begin saving on electricity after about 12 years.

How does solar power help the environment?

Solar power is a renewable energy source that provides an alternative to traditional energy generation. Using solar can help reduce greenhouse gas emissions, lessening the impact of climate change, which affects humans, wildlife, and ecosystems worldwide.