SolarPaybackHQ

Ohio Solar Calculator — 2026 Costs & Payback

Ohio offers full retail net metering from major investor-owned utilities (AEP Ohio, Duke Ohio, Toledo Edison, Ohio Edison) and 100% property tax exemption on residential solar. Payback typically 10–12 years — solid, with no state tax credit but reliable utility net metering.

US Solar Payback Calculator — 2026

Get an accurate solar payback estimate for your state using NREL solar irradiance, EIA electricity rates, and the 30% federal Investment Tax Credit.

Recommended system size
3.5 kW
Producing approximately 5,670 kWh/year at 1620 kWh/kW production factor for California.
Gross system cost
$10,850
at $3.1/W installed
Federal ITC (30%)
−$3,255
Net cost after incentives
$7,595
Payback period
6.8 years
$1,116/year savings at current electricity rates and avoided-cost export rate. 20-year net benefit projection: $20,164.
Get real installer quotes for your roof

The numbers above are based on state averages. Real quotes vary by roof orientation, shading, panel type, and installer. Compare quotes from 3+ pre-vetted installers in your area — free, no obligation.

California solar specifics

Highest electricity rates in the lower 48. NEM 3.0 (since April 2023) cuts export rates ~75%. Battery storage now near-mandatory for payback.

Methodology & sources

Solar irradiance per state: National Renewable Energy Laboratory (NREL) PVWatts PSM3 typical-year data, weighted state average for residential rooftops.

Electricity rates: EIA Form 826 monthly residential rates (most recent September 2025 data).

Federal ITC: 30% through 2032 under the Inflation Reduction Act (Section 25D).

State incentives: DSIRE (Database of State Incentives for Renewables & Efficiency) as of April 2026.

Inflation assumptions: 2.5% annual electricity price increase (EIA AEO 2024 reference case), 0.5% annual panel degradation (NREL standard).

Self-consumption assumption: 45% direct self-consumption without battery — typical for residential without storage.

Deep dive — solar in Ohio

Net metering: Full retail-rate net metering at major IOUs for residential systems up to 25 kW. Co-op participation varies.

Property tax exemption: 100% of added home value from renewable energy systems excluded from assessment (Ohio Rev Code 5713.05).

No state income tax credit for residential solar.

Sales tax: Solar equipment is fully taxed (no exemption) — adds 6.5–8% depending on county.

Major utilities: AEP Ohio (largest), Duke Ohio, FirstEnergy (Toledo Edison + Ohio Edison + Cleveland Public Power), Dayton Power & Light. All participate in retail-rate net metering for residential.

Ohio solar FAQ

Does Ohio have net metering?

Yes — full retail-rate net metering at major investor-owned utilities for residential systems up to 25 kW.

Is there a property tax exemption for solar in Ohio?

Yes — 100% of the added home value from renewable energy systems is excluded from property tax assessment.

Are solar panels sales-tax exempt in Ohio?

No, sales tax of 6.5–8% applies depending on county. This is a notable disadvantage compared to neighboring states.

How much does solar cost in Ohio 2026?

Average $2.70/W installed. An 8 kW system: $21,600 gross, $15,120 after 30% federal ITC. Plus 6.5–8% sales tax.