Ohio solar currently has enough solar panels installed to power almost 100,000 homes. It’s clear that solar panels aren’t just a fad in the state, as homeowners are regularly switching to the more environmentally-friendly alternative.
But what are the financial advantages of switching to solar? Are there any solar rebates, incentives, or credits in Ohio?
That’s what we’re here to look at today. Read on to find out more about Ohio solar incentives.
Solar Renewable Energy Certificates (SRECs)
Ohio’s most prominent solar energy incentive is definitely the Solar Renewable Energy Certificates (SRECs). The SRECs are part of a larger plan to transition the entire state towards renewable energy by the next few decades.
In 2008, the state government passed a law mandating four investor-owned utilities to generate 25 percent of their energy through alternative sources by 2025. Solar energy was designed to take up a bulk of those alternative sources.
The law mandates that at least half of the renewable energy, including solar, must be produced in Ohio. As such, the SRECs provide a cash amount for every megawatt-hour of electricity that you produce.
In 2016, this amount was around $15 per MWh. For residents with solar panels, 5 MWh could net you about $75 a year.
State-Sponsored Interest Rate Programs
If you’re worried about the initial costs of installing solar panels, don’t fret. Ohio also has an interest-rate reduction program for any homeowners installing energy-saving technologies on their property.
ECO-Link provides up to three percent in interest rate reduction on bank loans for up to seven years when installing something like solar panels. The state has a standard for what counts as an energy-efficient product.
At least 50 percent of the reduction has to be used for paying off your solar. This helps homeowners bear the initial costs of installing their panels.
Net Metering In Ohio
Net metering is an arrangement that local utility companies make with their customers who generate their own energy. If you have solar panels that produce excess power, you can channel it to the utility company for credits.
These credits can be used for paying the utility company, as there’ll be instances where your panels don’t produce as much energy as you need. Duke Energy in Ohio currently has the top net metering program.
So long as you get a qualified solar company like Blue Raven Solar to handle your installation, you can leverage net metering and reduce your utility bills.
Of course, you can receive additional credits from the federal government as well. The federal solar tax credit program lets you deduct the cost of installing solar panels off of your annual federal income taxes.
That means you can shave off a certain amount off of your taxes each year based on your solar panel installation costs. By 2022, the amount you can deduct will be 26 percent of the cost of your solar system.
While this incentive isn’t specific to Ohio, it’s an incredibly robust and beneficial program that every solar panel owner should take advantage of. Congress recently extended the program, so it won’t be going anywhere.
Ohio Solar Incentives For You
Ohio solar incentives might be daunting if you aren’t sure how it all works. Use this article to help you find the right incentive to suit your needs.
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