2025 Solar Incentives Guide for Amherst, OH - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Amherst?

Source: https://www.dsireusa.org/

The phrase "solar incentives" covers a range of financial incentives implemented to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. Various types of incentives, such as cash back, discounts or monthly utility bill credits, might be available to you. Some incentives may be provided via the Ohio government, by your utility company or by county or municipality, while others are federal. You might qualify for any of the following types of solar incentives:

• Tax Exemptions: These might come in the form of property tax exemptions, which would allow you to exclude the value added by your solar panels when paying property tax on your house. You may also qualify for an exemption on sales tax at the time of purchase.
• Solar Renewable Energy Certificate (SREC): SRECs and similar other performance-based incentives may be available to you if you have a solar system that produces more than a specified (generally small) amount of electricity. Performance-based incentives are typically handled at the state level. You can sell your SRECs to your utility company or other buyers, and the money you make is generally considered part of your taxable income.
• Tax Credits: Unlike tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government.
• Rebates: A rebate is a partial refund given after you've purchased your solar panels. Rebates could be offered by your local utility company, your county or your state. The discount that rebates offer is normally applied to the price of solar panels before calculating tax credits.
• Net Metering: Net metering becomes relevant after your solar system is up and running. If you've signed a net metering agreement with your Amherst utility company, the company will subtract the value of the excess energy produced by your solar system from your utility bill each month. In some locations, this is a dollar-for-dollar credit, while in other areas you may get refunded a percentage of the value.

Federal Solar Incentives

Federal solar incentives are likely the first thing that you think of when thinking about solar incentives. It's likely that you've heard of the Federal Solar Investment Tax Credit, or ITC. This is a tax credit that reduces your taxes by a certain percentage of the money you spend installing solar panels.

The ITC can be applied to solar panels installed after January 1, 2006, on a primary or secondary residence in the United States that you own. The credit initially covered 30% of the total cost – for panels, equipment, labor and accessories – although the percentage may range from 26-30%, depending on the installation date of your solar system. There is no cap on the claim amount.

Curious how the ITC might apply to your specific situation? Reach out to your local Amherst solar panel installer to get more information.

In August 2022, the ITC (now called the Clean Energy Credit) was expanded and extended by the passing of the Inflation Reduction Act. The new Clean Energy Credit is valid until 2035. You can now apply for a 30% credit for solar systems installed between 2022 and 2032. The total credit will then decrease annually until it expires. The expansion also makes credits for energy storage systems even easier to claim, starting in 2023.

Click here to learn more about the new Inflation Reduction Act. To understand how the new Clean Energy Credit will apply to you, talk to your local Amherst solar installation company.

State & Local Solar Incentives

There are often also state solar incentives in addition to those provided by the federal government. Rebates, tax credits and more may be available at a more local level. Certain incentives are ongoing, while others are only available for a limited time. Solar incentives may be offered by your county or municipality, or by the Ohio government.

Next Steps for Installing Solar in Amherst

Solar incentives can be offered by your local utility company, the federal government or the Ohio government. The growing number of solar incentives available has contributed to a large increase in solar energy use in the last 15 years. Speak with your local solar panel installation company today to discover more about the various programs and to save the most money possible on solar panels for your Amherst home.