Is solar worth it in Ohio in 2026?

How Ohio pays for your solar power

Net billing (exports credited below retail). Ohio utilities credit exports at the energy part of the standard service offer only, carried forward as a bill credit; the rule has stood since 2017 (revised 2019, 2024).

In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 35% of retail (our default for this kind of rule), so each solar kWh is worth 61% of the retail price on average. Change it if your utility pays more or less. Method

State or utility incentive	What it is worth
Property tax exemption for small energy facilities	Fixtures and real property in an energy facility of 250 kW or less are exempt from taxation (installed on or after Jan. 1, 2010)

How exports are credited

Ohio net metering is set by the Public Utilities Commission of Ohio (PUCO) in Ohio Administrative Code rule 4901:1-10-28. When a home sends more electricity to the grid than it takes in a monthly billing cycle, the excess kWh are converted to a monetary credit “at the energy component of the electric utility’s standard service offer.” That credit carries forward on future bills. The utility does not have to pay it out, and the credit may be lost if the customer stops taking service from the utility.

The key point is what the credit leaves out. AEP Ohio’s tariff guidance says the negative kWh are multiplied by the generation energy component of the standard service schedule, and the credit does not include other generation components or any distribution and transmission charges and riders. So an exported kWh earns less than a kWh that offsets use on site, which makes this net billing rather than full retail net metering. The size of the gap depends on the utility’s current generation rate, which is reset periodically; check the current AEP Ohio tariff for the cents-per-kWh figure.

PUCO adopted this approach on November 8, 2017. Press coverage at the time reported it cut credits for AEP customers by roughly 31% and added a size limit. The rule was revised again in 2019 and most recently with an effective date of April 8, 2024, and the credit wording above is from that current text.

Two other rules matter. A system may not exceed 120% of the customer’s electricity requirements at the time of interconnection (AEP Ohio applies this on a rolling 12-month basis). And customers who buy from a competitive retail supplier get whatever credit that supplier’s contract offers, which can be any price or manner of credit.

The rule covers investor-owned utilities such as AEP Ohio. Municipal utilities and rural electric cooperatives set their own net metering terms, so check with the local provider.

State incentives in 2026

Ohio Revised Code 5709.53 exempts from property tax the fixtures and real property of an energy facility with a nameplate capacity of 250 kW or less, for facilities completed on or after January 1, 2010. A typical home system falls well under that limit, so adding solar should not raise the property tax bill. Confirm with the county auditor how the exemption is applied to a specific parcel.

Ohio does not offer a statewide income tax credit or cash rebate for residential solar. The federal 30% residential credit ended for systems installed after December 31, 2025, and is not available.

What it means for payback

Because exports are credited at only the energy part of the supply rate, the value of each solar kWh depends on whether it is used in the house or sent to the grid. Power used as it is produced offsets the full retail price, including delivery. Exported power earns the lower generation credit. Systems sized to household use, and habits that move usage into daylight hours, tend to capture more value than oversized arrays. Because credits can only be applied to future bills and can be lost on moving or closing the account, building up a large unused credit balance has little value.

Other rules worth knowing

The 120% sizing limit means oversizing for future needs, such as an electric vehicle, needs to be planned with the utility at interconnection. AEP Ohio also states plainly that tariffs can change and that it offers no guarantee of being grandfathered under the current terms.

Berkeley Lab does not publish a Ohio median from enough systems, so the calculator starts from the U.S. median of $3.60/W. Put your own quote in.