Is Solar Worth It in Ohio in 2026?
Ohio isn't a sunbelt state, but it isn't a bad solar state either. At 40.2°N, Columbus gets enough usable sun to produce roughly 1,238 kWh per installed kilowatt per year — noticeably less than Florida or Arizona, but workable, especially paired with electricity prices that have nearly doubled since 2005.
What changed for 2026 is the federal credit. The 30 percent Residential Clean Energy Credit is gone for any system completed after December 31, 2025 — no exception for a system you own. Ohio never had a broad state tax credit to fall back on, so what's left is thinner than in states like Florida: a property tax exemption, a murky sales tax question, and a net metering program under active attack at the Public Utilities Commission of Ohio (PUCO) as this page is written. Solar can still pencil out here, particularly for a home with high usage and a good south-facing roof — but payback is longer than a year ago, and part of the deal you're being sold (export credits) may not look the same in twelve months. This page walks through the real numbers.
Ohio Electricity Prices Keep Climbing
Every kilowatt-hour your panels make is one you don't buy from a utility, so the trend in Ohio's electricity prices matters as much as the trend in panel prices. Here's the long view, from federal EIA data.
Full Ohio electricity price data (1990–2025)
| Year | Ohio (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 8.1 | 7.8 |
| 1991 | 8.2 | 8.0 |
| 1992 | 8.2 | 8.2 |
| 1993 | 8.4 | 8.3 |
| 1994 | 8.6 | 8.4 |
| 1995 | 8.6 | 8.4 |
| 1996 | 8.6 | 8.4 |
| 1997 | 8.6 | 8.4 |
| 1998 | 8.7 | 8.3 |
| 1999 | 8.7 | 8.2 |
| 2000 | 8.6 | 8.2 |
| 2001 | 8.4 | 8.6 |
| 2002 | 8.2 | 8.4 |
| 2003 | 8.3 | 8.7 |
| 2004 | 8.5 | 9.0 |
| 2005 | 8.5 | 9.5 |
| 2006 | 9.3 | 10.4 |
| 2007 | 9.6 | 10.7 |
| 2008 | 10.1 | 11.3 |
| 2009 | 10.7 | 11.5 |
| 2010 | 11.3 | 11.5 |
| 2011 | 11.4 | 11.7 |
| 2012 | 11.8 | 11.9 |
| 2013 | 12.0 | 12.1 |
| 2014 | 12.5 | 12.5 |
| 2015 | 12.8 | 12.7 |
| 2016 | 12.5 | 12.6 |
| 2017 | 12.6 | 12.9 |
| 2018 | 12.6 | 12.9 |
| 2019 | 12.4 | 13.0 |
| 2020 | 12.3 | 13.2 |
| 2021 | 12.8 | 13.7 |
| 2022 | 13.9 | 15.0 |
| 2023 | 15.4 | 16.0 |
| 2024 | 16.0 | 16.5 |
| 2025 * | 17.0 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Ohio residential electricity sits around 17¢ per kWh as of EIA's preliminary 2025 figures — up roughly 99 percent since 2005, and climbing at about 2.9 percent a year over the last decade, faster than the national average. Ohio's deregulated retail electric market means prices also swing with wholesale power costs and competitive-supplier activity. None of that guarantees the next 20 years look like the last 20 — but a state that keeps raising rates is a state where a system that produces your own power keeps getting more valuable.
The Ohio Sun, Month by Month
Panels respond to how high the sun climbs and how long it stays up, not to the outdoor temperature. Ohio's latitude — about 40.2°N, roughly the Columbus line — means shorter, lower-angle winter days than a southern state, and a bigger swing between summer and winter production than you'd see near the equator.
Ohio monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 69 |
| Feb | 80 |
| Mar | 108 |
| Apr | 119 |
| May | 127 |
| Jun | 123 |
| Jul | 125 |
| Aug | 129 |
| Sep | 114 |
| Oct | 100 |
| Nov | 86 |
| Dec | 58 |
| Year | 1238 |
Source: NREL PVWatts typical-year estimate (Columbus), per installed kW at latitude tilt.
The practical read: April through August carry most of the year's production. December and January are lean — expect a real dip, not just a cloudy-day discount. That's exactly why net metering matters so much here: a system that banks summer surplus and draws it down in winter only works if the credit for that surplus is worth something.
What Solar Costs in Ohio in 2026
Ohio installs run about $2.65 to $2.90 per watt as of mid-2026 — EnergySage's June 2026 state data puts the average around $2.73/W (their average 13.4 kW system runs roughly $36,700 before incentives). Columbus averages near $2.77/W, Cleveland around $2.81/W, northwest Ohio closer to $2.65/W. With the federal 25D credit gone, none of these prices get a 30 percent haircut anymore for a system you own outright.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $13,250 to $14,500 | ~6,190 kWh/yr (~$88/mo at 17¢) | Smaller home, lower usage |
| 8 kW | $21,200 to $23,200 | ~9,900 kWh/yr (~$140/mo) | Average Ohio home |
| 12 kW | $31,800 to $34,800 | ~14,860 kWh/yr (~$210/mo) | Large home, electric heat or heavy usage |
These are pre-incentive prices. Whether you can shave roughly 5.75 percent off the equipment through a sales tax exemption is genuinely unsettled in Ohio right now — see the incentives section below before you assume that savings in a quote.
Estimate Your Ohio Payback
The calculator below starts from Ohio's average electricity rate and Columbus-area production. Swap in your own monthly bill to see an estimated system size, payback period, and 25-year savings. Ohio rates have climbed about 2.9 percent a year over the last decade — a reasonable starting point for the inflation field, though you can drag it lower if you want a more conservative estimate.
Ohio Solar Incentives in 2026
Ohio's incentive stack is thinner than states with a state tax credit or rebate program. Here's what's actually available.
- Gone — the 30 percent federal credit: The Residential Clean Energy Credit ended for installs completed after December 31, 2025. If a quote nets out a federal credit for a system you'll own, ask the installer to rerun the numbers.
- No state tax credit or rebate: Ohio has never offered a broad state income tax credit or cash rebate for residential solar. The ECO-Link program (Ohio Treasurer's office) offers a reduced-rate loan for solar financing — a cheaper loan, not free money — and Ohio's SREC market typically nets a homeowner only about $50 to $100 a year.
- Still here — property tax exemption: Under Ohio Revised Code §5727.75, systems of 250 kW or less installed since January 1, 2010 are fully exempt from Ohio real property tax. Your home's value goes up; your tax bill doesn't.
- Disputed — sales tax exemption: Several solar-industry sites cite Ohio Revised Code §5739.02 as exempting solar equipment from the state's 5.75 percent sales tax (roughly $1,500–$1,700 on a typical system). But at least one source reports the Ohio Department of Taxation disputes that a statewide residential exemption exists, and no official bulletin confirming it turned up in this research. Ask for the specific exemption certificate and verify at tax.ohio.gov before counting on the savings.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit (48E) through 2027, but it belongs to the leasing company, not you — it may lower your lease payment, or it may not.
Net Metering in Ohio — and Why It's Changing
Ohio requires its investor-owned utilities — AEP Ohio, Duke Energy Ohio, and FirstEnergy's Ohio Edison, Illuminating Company, and Toledo Edison — to offer net metering to systems up to 25 kW under Ohio Revised Code §4928.67 and the PUCO's rules. But it is not full-retail net metering. Since a December 2018 PUCO rule, only the power you use yourself is credited at the full retail rate (roughly 13–14¢/kWh); the surplus you export to the grid earns the utility's lower "energy component" rate instead — closer to 3.8–5.1¢/kWh, varying by utility and quarterly rate filing. Credits bank as a running balance rather than a cash payout. If you connected before your utility's post-HB6 tariff took effect (roughly 2021–2022), you may be grandfathered at full retail-rate compensation for 25 years — worth checking if you're buying a home with existing panels. One more Ohio-specific wrinkle: competitive retail electric service (CRES) providers aren't required to offer net metering at all, and if they do, they can set whatever rate they want.
The Ohio Angle: A Live Fight Over Net Metering
This is the thing a Florida or Texas guide can't tell you, because it's happening in Ohio specifically. PUCO is mid-way through its statutory five-year review of net metering rules, and AEP Ohio — the state's largest utility — has formally proposed replacing net metering with "net billing." The proposal would add distribution charges to all inbound electricity at a solar home, including power simply passing through on its way to being re-exported, and would bar customers who shop for a competitive supplier or join a community aggregation program from net metering eligibility — both common choices here, which makes the proposal unusually far-reaching.
Consumer and solar advocates — the Ohio Environmental Council, Citizens Utility Board of Ohio, Solar United Neighbors, the Environmental Law & Policy Center, and retail suppliers including IGS and the Retail Energy Supply Association — have filed opposition. As of this writing (July 2026), PUCO had not issued a final order. If you're evaluating a quote in AEP Ohio territory, ask directly how the payback math would change under net billing, and check the PUCO case docket for the current status before signing anything.
How to Go Solar in Ohio
Work through these steps before committing to a contract.
- Pull your last 12 power bills for an average monthly cost — Ohio's seasonal swing makes a single month misleading.
- Confirm your roof faces south, east, or west with minimal shade; north-facing roofs rarely pay off at this latitude.
- Check your roof has 10 to 15 years of life left, or budget to replace it first.
- Get at least three quotes reflecting 2026 reality: no phantom federal 25D credit, and a clear answer on whether the sales tax exemption is actually being applied.
- Ask how much of your production will likely be exported versus self-consumed, and price payback using the lower export rate, not retail.
- In AEP Ohio territory, ask specifically about the pending net billing proposal and how it would change your numbers if PUCO adopts it.
For the fundamentals of how solar systems work, sizing, and buying versus leasing, see our main solar panels guide — this page focuses on what's specific to Ohio. If your roof needs work before or after an install, check our roofing guide, and for panel wiring, inverters, and your home's electrical capacity, see our electrical guide.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Production estimates: NREL PVWatts. Net metering rules: PUCO — Net Metering, Ohio Revised Code §4928.67, and O.A.C. 4901:1-10-28. AEP Ohio net billing proposal coverage: Canary Media and Ohio Environmental Council. Property tax exemption: Ohio Revised Code §5727.75. Sales tax question: Ohio Revised Code §5739.02 — confirm current status at tax.ohio.gov. Cost data: EnergySage Ohio solar cost data. We review these figures every six months.