Installing a solar energy system will be an excellent investment in Ohio! Though it ranks 20th in the country for residential and 23rd in commercial electricity rates, with enough sunshine averaging 71.92% in a year, there is enough to power your solar panels!
Renewable sources of energy will be the imminent basis eventually. And considering the excellent solar incentives and rebates that the federal government is offering, property owners in the Buckeye State can reduce their cost of electricity and contribute to diminishing carbon emissions to the environment. Furthermore, what's great is that prices for solar panels have dropped by 80% over the last ten years.
How can you take advantage of all the solar incentives and rebates? Find out more below!
In Ohio, a substantial Renewable Portfolio Standards (RPS) mandate that 8.5% of all the state's energy comes from renewable sources by 2026. Utility companies must meet the standards, or they will have to pay fees if the criteria still need to be met. Naturally, utilities in strong RPS states offer solar incentives for property owners to invest in solar panels instead of paying the fees.
Ohio enacted the Alternative Energy Portfolio Standard (AEPS) that covers retail electric utility companies but excludes municipal and cooperative utility companies. The AEPS incorporates solar carve-outs that offer incentives to distribute reduced technologies. In New Hampshire, the AEPS mandates that a particular proportion of renewable energy from solar requirements will be a slight 0.5% by 2026.
The Public Utilities Commission (PUC) obliges all investor-owned utilities and cooperatives to provide solar incentives through net metering. Property owners can offset their power consumption from the public utility by connecting their solar panels or other renewable generators to the grid.
In Ohio, Interconnection standards are state-wide, clear, and well thought out. Interconnection standards refer to the rules and regulations that solar and other electricity-generating systems must follow when connecting to the power grid. The standards make installation easier and usually less expensive, making net metering more reliable.
Fortunately, Ohio is among the states that provide Performance-Based Incentives (PBI). PBIs are Ohio solar incentives based on the actual power your system generates. The ones in Ohio are called Solar Power Performance Payments. You get paid based on kilowatt-hours (kWh) or BTUs from your home or business solar power system. The electricity produced by solar systems generates Solar Renewable Energy Credits (SRECs) and can be sold in a market where their value is determined by supply and demand. These credits can help solar owners offset the cost of their system. SRECs are an excellent way to help your system pay for itself.
While property tax exemption is not available across Ohio for residential properties, homeowners who install solar panels in Cleveland and Cincinnati can benefit from this exemption. The value of their homes will not be reassessed after adding a solar system, and they will continue to pay property taxes based on the home's value before the solar system installation. However, commercial solar systems enjoy this property tax exemption throughout the state.
That's a 5.75% savings for Ohio home and business owners right from the start!
Ohio offers access to funding for energy-efficient power systems and improvements through the PACE financing scheme. This program is an excellent way to finance property owners in going solar.
The Buckeye State has established the Energy Conservation for Ohioans (ECO-Link) Program to lessen solar investment costs. Also called the Sponsored Interest Rate Reductions, this solar incentives scheme will eventually make sustainable energy more reachable and reasonable to property owners of Ohio.
You also qualify for a hefty tax credit from the Federal government. The Investment Tax Credit (ITC) allows solar panel buyers to deduct 26% of the system cost from their Federal income tax. The credit only applies to those who purchase their system with cash or a loan. Those who lease their system will not receive the credit.
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