Is Solar Worth It in Ohio in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Ohio homeowners — without the federal ITC.
Cost Per Watt
$2.90
installed
Electricity Rate
$0.158
per kWh
Payback (No ITC)
14.5 yr
current reality
Payback (With 30% ITC)
10.2 yr
hypothetical
25-Year ROI
72%
return on investment
Incentive Breakdown — Ohio
Available incentives for a typical 7kW residential solar system in Ohio
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneOhio does not offer a state tax credit for solar installations.
SREC Market
~$70/yrOhio has an SREC market but values are relatively low, approximately $10/SREC.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: Property tax exemption for solar; SREC market value ~$70/year.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Ohio
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.90/W
- Gross Cost
- $20,300
- Federal ITC
- $0
- Net Cost
- $20,300
- Annual Savings
- $1,399/yr
- Payback Period
- 14.5 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.90/W
- Gross Cost
- $20,300
- Federal ITC (30%)
- -$6,090
- Net Cost
- $14,210
- Annual Savings
- $1,399/yr
- Payback Period
- 10.2 years
Impact: Without the federal ITC, Ohio homeowners face a 4.3-year longer payback period — paying $6,090 more out of pocket.
Net Metering Policy — Ohio
How Ohio compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Ohio offers full retail net metering for systems up to 25 kW under PUCO rules.
Cost Per Watt Benchmark — Ohio
Ohio Average
$2.90/W
National Average
$3.05/W
Typical 7kW System
$20,300
Ohio's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Ohio breaks even in 14.5 years. With the former 30% ITC, payback would drop to 10.2 years.
Without Federal ITC
14.5
years to break even
With Former 30% ITC
10.2
years to break even
Production Details
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