Ohio Net Metering

How Do Ohio’s Net Metering Policies Work?

According to the Database of State Incentives for Renewable Energy (DSIRE), Ohio’s net metering policy requires electric utilities to provide net metering as an option to customers who generate electricity using any of the following energy sources: solar, wind, biomass, landfill gas, hydropower, fuel cells, and microturbines.

Under Ohio’s net metering rules, while investor-owned utilities are mandated to offer net metering, competitive retail electric service (CRES) providers are not. CRES providers that do enter into a net metering contract with a customer can do so at any price, rate, credit, or refund for net excess generation.

Looking for a new electricity provider? Explore Just Energy’s Ohio energy plans.

Eligibility for Interconnection and Net Metering in Ohio

After obtaining solar panels for your home, contact your local utility to apply for interconnection. Interconnection is the process where your utility company connects your renewable energy system to the grid upon verifying it is safe to do so.

You will likely need to sign an interconnection agreement to participate in a net metering program. This agreement states that you can sell any excess energy generated from your solar system back to your utility.

Ohio revised its interconnection rules in 2014. This regulatory policy includes specific interconnection standards that include different levels for investor-based generator systems to qualify. The Ohio Public Utilities Commission can clarify the system size limits for interconnection applicants.

Understanding Net Metering in Ohio

Ohio’s net metering allows customers to receive credit toward their electric bill for any excess power generated from their renewable energy system. This means you can produce your own electricity and benefit from the net metering rules.

Here’s how it works:

• Renewable energy systems are key for net metering, so first, buy or lease and install a solar system or a small wind turbine that generates electricity, and make sure it is advanced meter capable.
• Use your clean electricity regularly throughout the day and night.
• Any excess generation your system produces is sent back to the grid so it doesn’t go to waste. This way, others in your community benefit from more energy on the grid while you save money.
• Excess electricity production is rolled over to the next billing period as a monetary credit on your bill.
• Solar customers can get the most out of net metering by optimizing their usage. For example, be sure to take advantage of the times your panels may produce the most energy, which are considered peak hours. Typically, net metering credits are generated during sunnier days.

To enroll in net metering, get a solar energy system installed and complete the interconnection process with your local utility company.

Benefits of Net Metering

So how, exactly, does net metering help you and others in Ohio?

Aging infrastructure often means the grid often can not keep up with everyone’s energy needs. It causes grid instability and increases the risk of power outages, especially during major storms. But since solar energy systems are connected to the power grid, customers with net-metered systems help other Ohio residents when they send back energy they don’t use. 

What Solar Incentives and Rebates Are Available in Ohio?

In addition to the state’s net metering offerings, Ohio provides a variety of other financial incentives to homeowners looking to save money by investing in solar or another type of clean energy. Those benefits include sales tax exemptions, rebates, home improvement programs, and loan programs, as well as energy-efficient mortgages that make the switch to solar a worthwhile investment. Specific benefits include:

• Solar Renewable Energy Certificates (SRECs)
• Qualified Energy Property Tax Exemption for Projects 250 kW or Less
• Qualified Energy Property Tax Exemption for Projects over 250 kW

Learn more about Ohio’s solar incentives and rebates.

Conclusion

Ohio net metering is among a wide range of solar incentives and rebates that work alongside the federal solar tax credit to reduce your energy bills. This state-wide program can help customer-generators reach environmental and financial goals. Net metering also supports aging grid infrastructure, by reducing the number of power outages.