In the Buckeye State, harnessing the sun's power with solar panels is an environmentally conscious choice and a savvy financial decision. While the initial investment in solar technology is considerable, there are ways to cut costs and make the switch to solar more affordable.
In this blog post, we'll explore some ways to save money on solar panel systems in Ohio.
Take advantage of the Federal Solar Tax Credit
The Federal Solar Tax Credit is a dollar-for-dollar tax credit that allows homeowners to write off 30% of solar installations*. Installation costs include:
- Preparing your building for installation, including performing service upgrades to existing electric panels and replacing part of the roof before installing the solar system itself if needed
- Installing wiring to the solar system
- Assembling and installing the solar system
- Adding solar panels
- Labor costs for any on-site preparation, installation, assembly, and more. These items include permitting fees as well as inspection costs.
- The cost of any equipment like wiring, mounting materials, and inverters
Dollar-for-dollar tax credits work so that if you spend $30,000 on a solar system, 30% of the project cost- $9,000 in this case- is subtracted from what you owe on federal taxes.
Note that your qualifications depend on your tax situation, and each homeowner is responsible for consulting with a tax advisor to confirm how the solar tax credit applies to them.
Ohioans qualify for Solar Renewable Energy Credits
Solar Renewable Energy Credits (SRECs)
SRECs are tradeable credits representing one megawatt-hour of solar energy that Ohio residents can sell to utilities or other entities seeking to meet renewable energy standards. Solar system owners receive cash value for their credits, which they can use to offset their initial investment costs for the solar system.
SREC values vary depending on your utility and market dynamics. As of the writing of this article in November 2023, SREC prices hover around $3.50 and $4.
There are multiple Financing options available for Buckeyes
Hamilton County Home Improvement Program (HIP) loans offer Hamilton County homeowners a 3% discount below the lowest interest rate a participating bank would offer on solar projects.
Energy Efficient Mortgages are mortgages for energy-efficient homes or ones that will be energy-efficient before financing is approved. The loans qualify borrowers for more favorable financing terms, such as a larger loan amount and a more energy-efficient home. Lenders offer conventional, Federal Housing Authority (FHA), and Veterans Affairs (VA) backed loans that allow homeowners to finance solar installations to existing homes or increase their home buying power by purchasing a new solar-powered home.
Take advantage of Net Metering
Net metering is a billing arrangement that allows you to earn credits on your electricity bill for the surplus energy your solar panels generate and contribute to the grid. Participating in a net metering program in Ohio can significantly reduce your electricity costs.
Check out tax abatements within your city
The City of Cleveland offers its residents a 10-15 year 100% residential tax abatement on all property value increases due to solar panel installations.
Cincinnati Property Tax Exemption
Cincinnati offers a similar residential tax abatement to citizens who renovate existing properties. Cincinnattians who go solar will only be required to pay taxes on the pre-improvement value of their property for up to 10-15 years.
Get it right with Yellowlite
Embracing solar energy in Ohio doesn't have to break the bank. You can save on solar energy by combining federal and state incentives and taking advantage of local programs. Not only will you be contributing to a cleaner, more sustainable future, but you'll also enjoy the long-term benefits of reduced energy bills and increased energy independence.
Want to talk? Our pro-solar experts are here to help you save money on solar in Ohio.
Contact us today!
