Benefits of Solar Energy
Solar energy provides multiple advantages. Let's look at a few of them.
- Better energy independence: Photovoltaic solar panel systems with energy storage systems operate through blackouts and emergencies, and you won't have to depend on the power grid for your safety and comfort.
- Reduced carbon footprint: Using solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
- Lowered energy bills: With a solar array, you produce power without paying the tacked-on costs of grid-tied power. You can eliminate your bills completely if you go off-grid. Plus, a significant amount of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
What Solar Incentives Are Available to Cincinnati Homeowners?
Governments and power companies often incentivize homeowners for switching to solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
Incentive Type: Loan Program
Website: hamiltoncountyohio.govIncentive Amount:
$50,000
Incentive Type: PACE Financing
Incentive Amount:
Low-interest, 30-year loan
Incentive Type: Loan Program
Website: tos.ohio.govIncentive Amount:
Rate reduction available for up to $50,000 and 7 years of the bank loan
Incentive Type: Solar Renewable Energy Credit Program
Website: puco.ohio.govIncentive Amount:
SREC prices vary based on market conditions
Incentive Type: Property Tax Incentive
Website: cincinnaticitywide.comIncentive Amount:
Residential New Construction: 100% tax abatement for 15 years
Residential Renovations: 100% tax abatement for 10 years
Commercial New Construction: Effective 75% tax abatement for 8-15 years
Commercial Renovations: Effective 75% tax abatement for 8-12 years
Incentive Type: Rebate Program
Website: duke-energy.comIncentive Amount:
Variable Refrigerant Flow HVAC: up to $400
Central AC or Heat pump: $300-$400
Geothermal Heat Pump: $400
Smart Thermostat: $125
Heat Pump Water Heater: $350
Variable Speed Pool Pumps: $300
Duct Sealing: $100
Duct Insulation: $75
Attic Insulation and Air Sealing: $250
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Cincinnati
The price and performance of solar panels often depend on which company installed them. Here are some important factors to bear in mind while searching for a solar company.
Licensing and Training
Ohio may require a solar installer to hold a state contractors' license, but only for commercial work. For residential work, cities can establish their own licensing or regulatory requirements. Solar providers can also pursue certificates from standards organizations and trade groups. The most recognized ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Cincinnati
Your photovoltaic panels' model will affect how much electricity you can produce. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
You can also add electric car (EV) chargers and battery backup systems. These will increase your total installation cost, but they can enhance your solar system's performance. Not all solar companies provide these optional components, so look for a provider that sells them if it's essential for you.
Generally speaking, it costs about $17,050 for a five-kilowatt solar array in Cincinnati. This table shows more specific costs for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,167 |
| Solar Polycrystalline | $910 |
| Thin-Film | $532 |
| Solar Battery | $747 |
| Solar Home EV Charger | $2,801 |
Financing Solar Energy in Cincinnati
There are many ways to pay for a new solar system, and the right one will lower your costs. A few of the most common options include leases, cash payments, loans, and power purchase agreements (PPAs). Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they help you avoid paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Similar to a home or auto loan, you'll pay a set monthly rate with as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate determined by the energy you use, akin to an electric bill. We usually don’t recommend these two choices because you won't own the panels and are disqualified from using solar incentives. Ask each company you're considering about the payment plans it offers. A consultant can help you determine the most suitable option for your budget.
The table below lists the average payback periods for different capacities of solar systems in Cincinnati.
The IRS allows you to claim a 26% federal solar tax credit on the full cost of the solar system, so long as you purchase it before 2032. Municipal authorities and utilities might also offer their own incentives, rebates, and financing programs that could save you more money.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.6 years |
| 2 kW | 5.2 years |
| 5 kW | 13.1 years |
| 10 kW | 26.2 years |
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Frequently Asked Questions About Solar in Cincinnati
How much energy and money could I save per year by switching to solar?
How prevalent is solar energy in Cincinnati?
Will a solar PV system boost my Cincinnati home value?
How long will a common solar system last?
What care do my solar panels need, and how frequently do they need it?
How long does it take to pay back a solar loan in Cincinnati?
How does "net metering" work, and do I need to participate?
Some states or energy providers mandate you to participate in net metering when purchasing your solar system, while others give you a choice. Either way, once you participate, you'll receive a bill credit or check for your excess generation at a wholesale or retail rate.
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