SolarReviews | Ohio Solar Power Rebates and Incentives

Rebates and other incentives for home solar panels in Ohio Net Metering

Ohio has a good 1:1 net metering scheme and under this scheme a customer can be paid out for net excess credits at the end of the year. Ohio has two primary programs that support the implementation of solar powersystems for home and small business being:

  • the Renewable Energy Credit (REC) Purchase program , and
  • the Renewable Energy Technology program

Renewable Energy Credit (REC) Purchase program

Ohio's AEP Renewable Energy Credit (REC) Purchase Program allows customers to sell their RECs produced from solar photovoltaic or wind energy systems. One REC is the environmental attributes of one megawatt hour (MWH) of electricity produced from a renewable source. The program only applies to systems installed before June 30, 2013. The customer must have an interconnection agreement with AEP Ohio, and the customer must have a utility grade meter installed with their system in order to record energy production. For systems less than 6 kW, customers can use the data tracking system that is built into their inverter if it is approved by the Public Utility Commission of Ohio. All systems must be registered with the State of Ohio, and the RECs must be registered in PJM-GATS. The limit of the system size is 100 kw. For wind facilities, customers will receive $34 per REC. For solar facilities, customers will receive $262.50 per REC purchased in 2012 or 2013. Payments are issued to the customer a month after the transfer deadlines. In order to enter the program, customers must contact the Distributed Generation Coordinator below. Detailed requirements and a sample agreement are available on the program website. Customers that install solar or wind may alternatively choose to participate in the Renewable Energy Technology (RET) Incentive Program. Customers who participate in the RET program receive a financial incentive based on the size or estimated output of their system, but must commit their RECs to AEP Ohio and so would have no ongoing income from Rec's.

Renewable Energy Technology program

As part of the Renewable Energy Technology (RET) Program, AEP Ohio offers incentives to customers that commit their Renewable Energy Credits (RECs) to AEP Ohio for 15 years. Solar photovoltaic systems are eligible for a $1.50/watt incentive. Residential systems must be at least 2 kW DC, and incentives are capped at $12,000 per customer or 50% of the system cost. Non-residential systems must be at least 10 kW DC, and incentives are capped at $75,000 or 50% of the system cost. Project equipment cannot be ordered, purchased, or installed prior to the execution of an agreement with AEP Ohio. All systems must be tied to AEP's electrical grid, comply with AEP's Interconnection Requirements, and must take service under AEP's Schedule Net Energy Metering Service.. Customers who install renewable energy systems may choose to maintain ownership over their RECs and sell the RECs to AEP through the REC Purchase Programinstead of participating in the RET program. Here is an example of a financial return that you might get if you were to elect to take the up front payment

Size of System (kw)  

5

Space required (square feet)

650

Price of system per watt  

$3.00

Price of power (marginal cost high usage kwh's) $ per kwh  

0.11

Average daily kwh produced per 1 kw of solar  

3.2

Total average daily production  

16

Total Price (before incentives)  

$15,000.00

Federal Tax Credit  

$4,500.00

State Tax Credit  

$0

State Rebate  

$7,500

Actual out of pocket cost after incentives claimed  

$3,000.00

Annual Power production  

5840

Total Annual Energy savings based on net metering at 1:1  

642.4

State tax credit above $1500 claimable in future years    
Annual income from SREC's based on $100 per SREC   Assume nothing as elect for up front rebate instead
Total Annual Return  

642.4

Annual Return on Investment  

21%

     
Payback Time assuming 7% annual increase in power prices   4.6 years
     

Check out that estimated pay back time, that is awesome, if you are thinking of getting solar in Ohio why not click here and get some quotes from local solar experts.


► You must be Signed in to leave a Comment

To Sign in click this link: Click here to Sign in

If you have not yet registered on the site then you can Click here to register as a new user or Click here to register as an installer



Get a free quote from local installers

 
Privacy Policy
Terms of Use
Sitemap
Sign in
Register now
Register Installer

 

Solar Power Incentives
Counties
Copyright © 2012 - solar-reviews.com. All rights reserved.