---
title: "Net Metering in Ohio"
description: "How Ohio net metering works, eligible utilities, billing impact, and credit rules for residential solar."
url: https://www.lifestylesolar.com/net-metering-ohio
type: marketing
---
# Net Metering in Ohio

Ohio law requires investor-owned utilities to offer net metering for residential solar systems up to **25 kW**, crediting homeowners at the full retail rate. Combined with Ohio's property tax exemption for renewable energy equipment, this makes Ohio a supportive environment for residential solar.

## How net metering works in Ohio

1. **Your panels produce energy**, during daylight hours, your solar system generates electricity. Your home uses what it needs first, reducing how much you draw from the grid.
2. **Excess flows to the grid**, when your panels produce more than your home uses, the surplus exports to the utility grid via a bi-directional meter.
3. **You earn credits**, for every kilowatt-hour of surplus energy, you earn a credit on your utility bill. Credits offset usage during evenings, cloudy days, and high-consumption periods.
4. **Annual true-up**, at the end of the annual billing period, any remaining excess credits are typically settled at the utility's avoided-cost rate (lower than retail). Right-sizing the system to your annual usage is how you get the most out of net metering.

## Eligible utilities in Ohio

Major investor-owned utilities offering net metering for residential solar:

- **AEP Ohio**, central and southern Ohio
- **Duke Energy Ohio**, southwest Ohio (Cincinnati area)
- **Ohio Edison** (FirstEnergy), northeast and central Ohio
- **The Illuminating Company** (FirstEnergy), greater Cleveland
- **Toledo Edison** (FirstEnergy), northwest Ohio

## How your bill changes

After solar, your Ohio utility bill still includes:

- **Customer charge**, a fixed monthly fee that remains regardless of solar production.
- **Distribution charges**, grid-maintenance fees, reduced but not eliminated by net metering.
- **Generation charges**, the cost of the electricity itself; the portion most affected by net metering credits.
- **Net metering credits**, appear as a line item, offsetting generation charges. Unused credits carry forward month to month.

## Other Ohio incentives stacked with net metering

- **Property tax exemption**, Ohio exempts the added value of solar from property tax assessment.
- **No sales tax** on residential solar equipment.
- Ohio does not have an active SREC market on the scale of Pennsylvania's, so don't count on SREC income here.

## Ohio net metering at a glance

- Credits applied at retail rate during billing period
- Residential systems up to 25 kW are eligible
- Bi-directional meter provided by the utility
- Credits roll forward month to month
- Annual true-up at the end of the billing cycle
- All major Ohio investor-owned utilities participate

[Get a free quote →](/get-a-quote)

## Frequently asked questions

### How does net metering work in Ohio?

Ohio requires investor-owned utilities to offer net metering. When your solar system produces more electricity than your home uses, the excess is sent to the grid and you receive a kilowatt-hour credit on your bill.

### Which Ohio utilities offer net metering?

All investor-owned utilities in Ohio offer net metering, including AEP Ohio, Ohio Edison, The Illuminating Company (CEI), Toledo Edison, Duke Energy Ohio, and Dayton Power and Light.

### What are the details of Ohio's net metering credits?

Ohio requires investor-owned utilities to offer net metering, and credit rates may vary by utility. Credits carry forward month to month within the billing cycle. Ohio also offers a 100% property tax exemption for the added value solar brings to your home, so your property taxes won't increase after installation.