Ohio residents can qualify for incentives to help offset the cost of a solar system.
Federal Tax Incentive
The tax credits are for 30% of the remaining cost after grants of the system. The Federal Tax Credit can be taken on the entire system cost, but grant money must be taxed as income if that approach is used.
AEP has a $1.50 / Watt rebate for residential with a $12,000 cap for residential and $75,000 for commercial. The grant is taken in lieu of S-RECs. S-REC prices are down at present, making the rebate more attractive to many.
Net metering is a billing arrangement where customers who produce their own electricity can receive a credit on their electric bills for electricity fed back into the grid. It is like using the grid as a battery to store power produced when solar resources are available, which you can use when needed.
Solar Renewable Energy Certificates (SRECs)
SRECs are a new thing on the scene and Athens Electric can help you understand and benefit from this new market opportunity. These are often referred to as alternative energy credits, environmental credits, green tags, and tradeable renewable certificates. Ohio is one of relatively few states to have a Renewable Energy Certificate (REC) market. Essentially what this means for Ohioans who install solar is they can sell their SRECs (1 megawatt = 1 SREC) separately from the electricity and represents the “solar” aspect of the electricity that was produced. Learn more about this exciting new way to extend your solar reach beyond your own carbon offset!