What Tax Incentives Exist for Commercial Solar in Ohio?
What Tax Incentives Exist for Commercial Solar in Ohio?
If you're a business owner in Columbus or anywhere in Ohio considering solar, you're probably asking: “What financial help is out there to make solar more affordable?”
Here’s the honest answer: 2025 remains a great year to invest in solar, especially with several key incentives still active.
1. Federal Investment Tax Credit (ITC) – 30%
The most significant incentive for commercial solar remains the Investment Tax Credit (ITC).
What it does: Lets your business deduct 30% of the cost of a solar installation from federal taxes.
Applies to: Panels, inverters, racking, labor, and energy storage if installed at the same time.
Available through: At least 2032, thanks to the Inflation Reduction Act.
If your system costs $150,000, that’s $45,000 off your federal tax bill.
2. MACRS Accelerated Depreciation
Solar qualifies for the Modified Accelerated Cost Recovery System (MACRS), which lets you depreciate your system faster—often over just 5 years.
Bonus depreciation: You may still be eligible to deduct up to 60% of the system cost in year one (2025 phase-down rate).
Combined with the ITC, this can reduce your total system cost by over 50%.
3. Ohio Property and Sales Tax Exemptions
Sales tax: Solar equipment is exempt from Ohio sales tax, which saves you ~7% right off the top.
Property tax: The added value from your solar system doesn’t raise your property taxes under Ohio’s energy policy.
4. Net Metering in Ohio
Ohio still supports net metering, meaning:
If your solar system produces more electricity than you use, you get credits.
These credits roll over and reduce your future bills—maximizing savings.
5. REAP Grants for Rural Businesses and Farms
If you're in a rural area or own an agricultural business, you may qualify for a USDA REAP Grant:
Pays up to 50% of your project costs.
Competitive, but absolutely worth applying for.
FAQ: Real Questions from Business Owners
How much can I save by installing solar panels in Ohio?
With the 30% ITC and accelerated depreciation, many commercial systems pay for themselves in 5-7 years—and then deliver decades of free power.
Can I use the tax credit with a solar loan?
Yes. You still qualify for the ITC even if you finance the project, as long as you own the system (not a lease or PPA).
Do solar batteries qualify for tax credits?
Yes—if installed with solar. At BC Solar, we specialize in battery-centric designs to give you backup power and maximize value.
At BC Solar, we’re not just installing panels. We’re helping Ohio businesses build energy resilience and long-term savings. Owner Brian Zaayer personally oversees every system.
📍 Located right here in Columbus
📞 (614) 442-9700
🔗 bc.solar
