Is Solar Worth It in Ohio? Breaking Down the Costs vs. Savings
If you’re considering switching to solar, you’re probably wondering: Is it worth the investment? Ohio may not be the sunniest state, but thanks to 1:1 net metering, tax credits, and different payment options, many homeowners can eliminate their electric bill and see a strong return on investment. Going solar can have a significant impact on your long-term energy costs. In this guide, we’ll break down the costs, savings, and key factors to help you decide if solar is the right choice for your home.
The Cost of Going Solar in Ohio
The cost of installing solar panels in Ohio depends on factors like system size, equipment quality, and installation costs. On average, residential solar installations range from $15,000 to $80,000 before incentives. Going solar does not always require you to purchase the equipment, but in the event that you do - financing is typically utilized to make that payback more manageable. This still may seem like a significant amount, but for homes that get good sun exposure, this is usually much less than what it would cost you if you continued paying your electric bill for the same timeframe that it takes you to pay off your solar. However, there are multiple ways to go solar—some requiring an upfront investment, or taking out a loan, while others allow you to pay for solar power without purchasing the system.
Available Solar Incentives in Ohio
Federal Solar Investment Tax Credit (ITC): Homeowners who purchase their system can claim a 30% tax credit on the total system cost.
Net Metering: Many Ohio utilities allow net metering, meaning you can earn credits for excess energy your system produces, lowering your overall electric bill.
Solar Purchase vs. Power Purchase Agreements: What’s the Difference?
There are two main ways to go solar: owning your system or choosing a Power Purchase Agreement where you pay for the energy the system produces.
Purchasing a Solar System
Requires an upfront investment or solar loan.
Homeowners receive incentives like the 30% federal tax credit and net metering benefits.
Offers the highest long-term savings, as you no longer pay for electricity after the system is paid off.
Increases home value by adding a tangible asset.
Power Purchase Agreement (PPA)
No upfront cost—you pay for the solar energy, not the system itself.
The solar provider owns, maintains, and services the system.
Your electricity rate is typically lower than what the utility charges.
Predictable, transparent, and affordable rate plans
No tax credit benefits since you don’t own the system.
Ideal for homeowners who want to save on energy costs without an investment.
How Much Can You Save with Solar in Ohio?
Solar can help eliminate or drastically reduce your utility bill, depending on your system size and energy usage. Many of Ohios utility companies have announced rate increases. With rates on the rise, solar provides long-term price stability.
Typical Savings Over 25 Years:
Without Solar: You may pay $40,000 - $130,000 in electricity costs over 25 years depending on how much power you use.
With Purchased Solar: After incentives and financing, you could save $20,000 to $80,000+ over the system’s lifetime.
With a Power Purchase Agreement: Your savings depend on the agreement, but many homeowners see 10-30% lower electricity costs with no upfront investment and long term predictability for electricity costs.
Key Factors That Affect Solar Viability in Ohio
Sunlight Exposure: Ohio has fewer sunny days than some states, but high-efficiency panels make solar a viable option, even in cloudy conditions.
Electricity Rates: Higher energy costs make solar more attractive; Ohio’s moderate rates still allow for significant savings.
Financing Options: Whether you buy or opt for a PPA, there are ways to go solar with little to no upfront cost.
Is Solar Right for You?
Solar is worth it in Ohio if you:
✔ Own your home and have a suitable roof or land for solar panels.
✔ Want to lock in lower energy costs and avoid rising electricity prices.
✔ Qualify for federal and state incentives to reduce your upfront costs.
✔ Are looking for either long-term savings through ownership or immediate savings with a Power Purchase Agreement.
Solar in Ohio is a smart investment, whether you choose to purchase a system or take advantage of a power purchase agreement. Homeowners who buy their system benefit from incentives and long-term savings, while those who opt for a power purchase agreement can see immediate reductions in electricity costs with no investment required. If you're considering solar, now is the time to explore your options and start saving on electricity. Curious about how much you can save with solar? Contact Ohio Solar Initiative today for a free consultation. Our team will assess your home, explain your options, and help you find the best solar solution—whether you want to own your system or take advantage of a no-cost power purchase agreement. Get started today!
