Ohio’s 2023 Solar Tax Credits and Rebate Opportunities
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Ohio’s 2023 Solar Tax Credits and Rebate Opportunities

The high initial costs may seem threatening, but federal, state, and local incentives, tax credits, and rebates in Ohio might render them more affordable, enabling you to become energy independent and reduce your carbon footprint.

This guide details the advantages and financial incentives of switching to solar energy in Ohio, providing you all the details you need prior to making the switch.

Numerous tax credits, incentives, and rebates are available to Ohio residents who implement solar PV systems.

There are also federal, state, and at times local programs that can be utilized to mitigate installation costs and jumpstart energy cost savings.

The greatest benefit is that they aren’t mutually exclusive; you can take advantage of all that are available in your region.

Solar Renewable Energy Credits 

The SRECs are benefits that generate additional revenue from solar energy generation. Residents can receive one Solar Renewable Energy Credit for every megawatt-hour (MWh, or 1,000 KWh) of electricity generated by their solar panel system. SRECs may be sold for cash on the SREC market.

Depending on the utility and market conditions, SREC rates vary. Still, as of August 2023, they oscillate between $6.50 and $7.00, yielding between $52 and $100 annually for a system that generates 1 SREC per month.

Read Articles: Unlocking EV Tax Benefits: Your Ultimate Guide To Credits And Rebates

Tax Exemption for Qualified Energy Project

Ohio’s-2023-Solar-Tax-Credits-And-Rebate-Opportunities
The high initial costs may seem threatening, but federal, state, and local incentives, tax credits, and rebates in Ohio might render them more affordable, enabling you to become energy independent and reduce your carbon footprint.

Solar energy initiatives that meet certain requirements are eligible for a Solar Sale Tax Exemption. 

The average sales tax in Ohio is 5.7%. This exemption predominantly applies to personal tangible assets associated with “qualified energy projects” that employ solar panels to generate electricity.

For these projects to qualify, they must adhere to a number of conditions, such as prompt application submissions, construction schedules, and acquiring the necessary approvals.

After certification, the tangible personal and commercial property of these initiatives is exempt from taxation for specific tax years.

This code will be implemented on October 3, 2023.

Source: FORBES

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