Ohio Solar Guide 2026

AEP and FirstEnergy's net metering policies vary significantly. Here's how to navigate Ohio's complex utility landscape for solar.

Updated March 2026 · Sources: PUCO, DSIRE, EnergySage, NREL · Research by Dana Mercer
#22 solar state Complex utility policies
Avg install cost $2.90/W Before incentives · Q1 2026 · EnergySage
Electricity rate 12¢/kWh Statewide avg · EIA Jan 2026
Peak sun hrs/day 4.0 hrs State avg · NREL data
Typical payback 10-12 yrs After ITC only
Solar rank #22 Installed capacity · SEIA 2025

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Here's Ohio's solar challenge: Multiple utilities with different net metering policies make this one of the more complex states to analyze. AEP Ohio and FirstEnergy have varying approaches to solar compensation. Moderate solar resources and electricity rates create modest financial returns.

If you're paying AEP rates in Columbus or FirstEnergy rates in Cleveland, solar economics are marginal but improve for high-usage households. The key is understanding your specific utility's policies.

Ohio solar incentives (2026)

Incentive Type Amount Status Expires
Federal ITC (Solar Tax Credit) Federal tax credit 30% of system cost Active Dec 2032 (steps down)
Net Metering Export credit Varies by utility Utility dependent Ongoing
Property Tax Exemption Tax exemption 100% of added value Active Ongoing
Sales Tax Exemption Tax exemption None - OH taxes solar Not available
State Tax Credit State tax credit None available Not available
Utility Rebates Utility rebate Varies by utility Limited Varies

Ohio offers limited state incentives. Net metering policies and rebates vary significantly by utility company.


Ohio utilities: a complex landscape

Ohio has multiple major utilities, each with different solar policies. Understanding your utility's specific rules is crucial for accurate solar economics.

Major Ohio utilities and their solar policies

  • AEP Ohio: Columbus area, decent net metering policies
  • FirstEnergy/Cleveland Electric: Northern Ohio, more restrictive policies
  • Dayton Power & Light: Southwest Ohio, limited solar programs
  • Duke Energy: Cincinnati area, similar to North Carolina policies
  • Municipal utilities: Vary widely, some very solar-friendly

Net metering variations

  • Some utilities offer full retail rate credit
  • Others provide avoided cost rate compensation
  • Monthly vs. annual true-up varies by utility
  • System size limits differ between utilities

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Ohio solar install costs (Q1 2026)

System size Gross cost After 30% ITC Annual savings est. Payback (est.)
4 kW (small home) $11,600 $8,120 ~$525/yr ~15.5 years
6 kW (average home) $17,400 $12,180 ~$788/yr ~15.5 years
8 kW (typical larger home) $23,200 $16,240 ~$1,050/yr ~15.5 years
10 kW (large home) $29,000 $20,300 ~$1,313/yr ~15.5 years

Estimates assume average Ohio utility rates and policies. Actual returns vary significantly by utility company.

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