The Economics of Solar Power: Costs vs Savings

As renewable energy continues to gain traction, many Ohio residents are considering solar power as a viable option for their homes and businesses. Understanding the economic impact of this investment is crucial. In this post, we'll break down the costs, savings, and financial incentives available to Ohioans considering solar power.

Initial Costs of Solar Power

The upfront cost of installing a solar power system can be substantial. In Ohio, the average cost per watt for solar panels is around $2.50 to $3.50, meaning a typical 6wK system could cost between $15,000 and $21,000 before incentives. This price includes the panels, inverter, mounting hardware and installation. For a more detailed breakdown, use our Residential and Commerce Solar Calculator!

Financial Incentives and Rebates

To offset these initial costs, various financial incentives are available:

1. Federal Solar Investment Tax Credit (ITC): This federal incentive allows homeowners to deduct 30% of the cost of installing a solar energy system from their federal taxes. This can significantly reduce the upfront expenditure.
   

2. Solar Renewable Energy Certificates (SRECs): Ohio offers a market for SRECs, where homeowners can sell certificates representing the environmental benefits of their solar system. Each megawatt-hour (MWh) of electricity produced by a solar panel generates one SREC, which can be sold to utilities needing to meet renewable energy quotas.
   

3. Net Metering: Ohio's net metering policy allows solar panels owners to sell excess electricity back to the grid at the retail rate. This can help offset the cost of electricity when the solar panels are not producing enough power, such as during cloudy days or at night.
   

Long-Term Savings and Benefits:

By generating your own electricity, you can significantly reduce your monthly utility bills, as a solar panel system can offset a substantial portion of your energy consumption depending on the system size and usage. Additionally, solar installations can increase your property value with studies showing that homes with solar panels sell for more than those without, proving an attractive benefit if you plan to sell your home in the future. Solar power also offers energy independence, hedging against rising electricity costs and ensuring that a portion of your energy expenses remains stable and predictable.

Conclusion

Investing in solar power in Ohio can be economically beneficial, specially when taking advantage of available incentives. While the initial costs are significant, the long-term savings and environmental benefits make solar power an attractive option for many Ohioans.