Understanding solar incentives, tax credits, and rebates in Ohio

State-level solar incentives and rebates

The ECO-Link program provides homeowners in Ohio with the opportunity to get a reduced-rate loan for home-energy-efficiency upgrades, including solar panel installation. With the potential to secure loans of up to $50,000 at a rate 3% below the market rate, this initiative helps make it easier for you to finance your solar projects.

Solar Renewable Energy Certificates (SRECs) in Ohio

The state of Ohio is committed to ensuring 8.5% of its electricity comes from renewable sources by 2026. As part of this initiative, homeowners with solar panels can take advantage of Solar Renewable Energy Certificates (SRECs).

These certificates are awarded for every megawatt-hour (MWh) or 1,000 kilowatt-hours (kWh) of electricity generated by a solar system. This means you could sell these SRECs to utility companies and help them meet their renewable energy goals.

At present, the SREC market in Ohio is in high demand, with certificates being valued at $3 to $5 per MWh as of 2024. For a typical rooftop solar system, this could translate to 6 - 12 SRECs per year, providing up to $60 in cash incentives annually. And since there are companies that will handle the selling of SRECs for you, there's little to no effort on your part to get the incentive. Just ask your installer how to take advantage of this incentive.

While the financial returns from SRECs in Ohio may seem modest, they still represent another incentive if you install solar panels. When combined with other solar incentives such as the federal solar tax credit, SRECs can further increase the financial advantages of solar energy.