Solar can pay off in Cleveland because a typical 6 kW roof produces about 7,641 kWh a year (NREL PVWatts, ZIP 44113) against Ohio power that averages 19.52 cents per kWh (EIA, May 2026). Your wires utility is the Cleveland Electric Illuminating Company. The 30% federal homeowner credit ended December 31, 2025.
Cleveland sits in one of the more interesting solar markets in the country, and not for the reasons the ads suggest. Two things drive the math here: the Cleveland Electric Illuminating Company (CEI, part of FirstEnergy) delivers your power, and Ohio is a deregulated state where you shop for the generation half of your bill. Ohio’s version of net metering and its solar credit market are also thinner than what you see out east, so the honest case for Cleveland solar rests on your high all-in electric bill, not on stacked state subsidies. This page covers what solar really costs in Cleveland, how CEI credits the power you export, what Ohio’s programs actually pay in 2026, and how to check your own address in about a minute.
Why Cleveland’s power bills make solar pay
The reason solar pays in Cleveland is the size of the electric bill it offsets. Residential electricity in Ohio averages about 19.52 cents per kWh (EIA, as of May 2026), and once you add CEI’s delivery charges and riders on top of whatever generation supplier you picked, the all-in rate a Cleveland home actually pays runs higher than that statewide average (EIA Ohio electricity profile, as of 2026). Every kilowatt-hour your roof makes offsets one of those grid kilowatt-hours, so a Cleveland home spending $130 or more a month on electricity is a solid solar candidate. To see the exact cents on your own bill, read the generation (supply) and delivery lines on your CEI statement separately, since in Ohio those come from two different places.
Your production is what turns that rate into savings. According to MySolarFY’s analysis (August 2026), a typical 6 kW rooftop system in Cleveland ZIP 44113 produces about 7,641 kWh a year based on NREL PVWatts modeling, which offsets roughly $1,490 of power at Ohio’s average residential rate. Because output depends on your roof’s pitch, shading, and orientation, and Cleveland’s tree cover and lake-effect cloud days matter, estimate your specific roof with NREL’s free PVWatts calculator rather than a generic number. For how those numbers turn into a payback period, see our Ohio solar cost and payback guide.
See what solar programs are available in your Cleveland ZIP code
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Your utility is the Illuminating Company, and Ohio lets you shop for power
Cleveland is in FirstEnergy’s Cleveland Electric Illuminating Company territory, and that is fixed by where you live. CEI, known locally as the Illuminating Company, owns the poles and wires that deliver electricity across Cleveland and most of Cuyahoga County, and it is the utility that handles your interconnection and net metering when you go solar (FirstEnergy / The Illuminating Company, as of 2026). This is different from Columbus, which sits in AEP Ohio territory, so do not assume a rate or a program you read about in another Ohio city applies here.
Ohio is a deregulated, retail-choice state, which splits your bill in two. You cannot choose who delivers your power (that is always CEI in Cleveland), but you can choose the supplier who generates it, or stay on CEI’s default Standard Service Offer. The state runs an official Energy Choice Ohio apples-to-apples comparison through the Public Utilities Commission of Ohio so you can shop the generation rate (Energy Choice Ohio (PUCO), as of 2026). This matters for solar because net metering credits the generation portion of your bill, so the supply rate you are on affects what each exported kilowatt-hour is worth.
How Ohio net metering actually works
Here is the honest part that sets Ohio apart from states like New Jersey or Maryland. Ohio does credit the power you export to the grid, but not at the full retail rate. Under Ohio law and Public Utilities Commission of Ohio rules, CEI credits your exported kilowatt-hours at the utility’s unbundled generation rate, which is the energy-only portion of the price, not the full bundled rate that also includes delivery and transmission (FirstEnergy Ohio net metering FAQ; DSIRE Ohio net metering, as of 2026). The Ohio Supreme Court settled this in 2002, when it struck down an earlier full-retail credit rule, so this generation-only structure has been the law for two decades. The practical takeaway: a Cleveland export is worth real money, but less per kilowatt-hour than the retail price you pay, so sizing your system closer to your own usage (rather than oversizing to sell power back) usually makes the most sense.
| Cleveland value stream | How it works | Who keeps it |
|---|---|---|
| Offsetting your own use | Every kWh your roof makes is one you do not buy from CEI at the full all-in rate | The homeowner (this is the biggest lever in Ohio) |
| CEI net metering credit | Exported kWh credited at the unbundled generation rate, not the full retail rate | The customer of record on the account |
| Ohio SREC | A tradable credit per 1,000 kWh, but Ohio’s market pays very little (verify the current price) | The registered system owner (you if you buy) |
The Ohio SREC market: real, but small
Ohio has a solar renewable energy credit market, but set your expectations low. A registered system can earn one Ohio SREC for roughly every 1,000 kWh it generates, which you can sell into the market on top of your bill savings. The catch is that Ohio dropped its solar-specific carve-out and wound its renewable standard down, so demand is weak and prices are a small fraction of what states like New Jersey pay (SRECTrade Ohio market, as of 2026). Treat any SREC income as a minor extra, and verify the current Ohio SREC price with a broker or your installer before you count on it, rather than building your payback around it. The steady money in Cleveland is the bill you stop paying, not the credits you sell.
What the federal tax-credit change means for Cleveland
The federal homeowner credit is gone, and no Ohio program replaces it. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a Cleveland homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). You will still see search results, and even installer pages, asking whether the 30% credit is going away in 2026; the accurate answer is that the homeowner version already ended after December 31, 2025. For the full timeline, see what the federal solar tax-credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner (IRS Clean Electricity Investment Credit, as of 2026). On a leased system you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
Going solar on a Cleveland home
Cleveland’s older housing stock is what shapes most solar projects here. From the century homes of Ohio City, Tremont, and Detroit Shoreway to the postwar houses of the near-west and east suburbs, many Cleveland roofs and electrical panels predate modern solar, and that adds a few checks before panels go on. Older roofs may need a structural look or a re-roof first, and many older homes still run a 100-amp electrical service that may need an upgrade to carry a modern system, a battery, or EV charging. You also permit through the City of Cleveland (or your suburb) and interconnect through CEI, so your installer should be comfortable with both the local building department and the Illuminating Company’s interconnection paperwork.
| Cleveland home factor | What to plan for |
|---|---|
| Century home or older west/east-side house | A structural check or re-roof before install; confirm remaining roof life |
| 100-amp service panel | A likely electrical service upgrade to carry solar plus a battery or EV charging |
| Permitting and interconnection | A City of Cleveland (or suburban) building permit plus CEI interconnection approval |
| Lake-effect cloud cover and tree shade | Model your exact roof in PVWatts; do not rely on a generic production number |
Paying for solar in Cleveland: cash, loan, lease, or PPA
There is no single right way to pay for solar; the best fit depends on whether you want to own the system and keep its full savings, or avoid an up-front cost. You may also see ads for “free solar panels” in Cleveland, and it is worth being clear that solar is not free; those are almost always lease or PPA offers, a long-term contract with monthly payments rather than a giveaway, and on those the company that owns the panels keeps any tax credits and SREC value, not you. A solar loan is a popular way to own the system with little up front, while a lease or PPA can mean no up-front cost. To weigh the long-run numbers, see whether solar panels are worth it, and for how the credits work, see how net metering credits your solar exports.
| Path | Up-front cost | Who keeps the savings and credits | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You, the owner | You want the fastest payback and the most lifetime savings |
| Solar loan | Little to none, financed | You, the owner | You want ownership without paying cash up front |
| Lease or PPA | $0-up-front where eligible | The third-party owner | You prefer no up-front cost and a simpler, fixed monthly bill |
How to choose a solar installer in Cleveland
Search “cleveland solar panels” and most of the first page is national review sites and directories rather than the companies doing the work, so it pays to know how to screen a company directly. Cleveland has an active market of licensed installers, from local Northeast Ohio companies to national lease and PPA brands, which means real competition on price and service. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Ohio contractor and electrical license, with a licensed electrician on the job.
- A clear workmanship and equipment warranty in writing.
- Real experience with CEI interconnection and City of Cleveland permitting, so your net-metering setup is handled correctly.
- A written production estimate and a transparent quote that models Ohio’s generation-rate net metering honestly, not an inflated full-retail figure. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. For statewide programs and rules, see our Ohio solar incentives guide.
Frequently asked questions
Is solar worth it in Cleveland in 2026?
For most owner-occupied Cleveland homes with decent sun, yes, though the case rests on your bill rather than on state subsidies. Residential electricity in Ohio averages about 19.52 cents per kWh (EIA, as of May 2026), and a typical 6 kW roof in ZIP 44113 produces around 7,641 kWh a year (NREL PVWatts), so every kilowatt-hour your roof makes offsets one you would have bought from CEI. Ohio’s net metering credits exports at the lower generation rate, and its SREC market pays very little, so most of the value is the power you stop buying. Savings depend on your roof, usage, and how you pay, and they are not guaranteed.
Who is my electric utility in Cleveland?
Your electric distribution utility is the Cleveland Electric Illuminating Company (CEI), known locally as the Illuminating Company, which is part of FirstEnergy. CEI owns the poles and wires across Cleveland and most of Cuyahoga County and handles your interconnection and net metering. Because Ohio is a deregulated, retail-choice state, you can shop for the generation supplier who produces your power through the Energy Choice Ohio comparison run by the Public Utilities Commission of Ohio, but delivery is always CEI in Cleveland. This is different from Columbus, which is in AEP Ohio territory.
Does Ohio have net metering, and is it full retail?
Ohio has net metering, but it is not full retail. CEI credits the electricity you export to the grid at the utility’s unbundled generation rate, which is the energy-only portion of the price, not the full bundled rate that includes delivery and transmission (DSIRE Ohio net metering, as of 2026). The Ohio Supreme Court struck down an earlier full-retail rule in 2002, so this generation-only credit has been the law for two decades. Practically, that means an exported kilowatt-hour is worth less than the retail price you pay, so sizing a system close to your own usage usually beats oversizing to sell power back.
Are Ohio SRECs worth anything in 2026?
Ohio still has a solar renewable energy credit market, but it pays very little. A registered system earns roughly one Ohio SREC per 1,000 kWh generated, which you can sell on top of your bill savings, but Ohio dropped its solar carve-out and wound its renewable standard down, so prices are a small fraction of what states like New Jersey pay (SRECTrade Ohio market, as of 2026). Treat any SREC income as a minor extra and verify the current Ohio SREC price with a broker or installer before counting on it. Your steady savings come from the CEI power you stop buying, not from selling credits.
Is the 30% federal solar tax credit going away in 2026?
It already ended. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a Cleveland homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS, as of 2026). You will see pages and ads that still imply the credit is available; for a 2026 install it is not. A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. No Ohio program replaces the federal homeowner credit.
What does “no up-front cost” actually mean?
It refers to lease and PPA financing, where an eligible homeowner can have no out-of-pocket cost at installation because a third party owns the system and you pay a monthly amount instead. It is not free solar; it is a long-term agreement, usually 20 to 25 years, that may include an annual price escalator, and the total payments can exceed what a cash purchase would cost. On a lease or PPA the company that owns the panels also keeps any tax credits and SREC value, not you. It can still be a good fit if you want predictable payments and no up-front spend, but read the contract term, the escalator, and who keeps the incentives before you sign.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL PVWatts, Public Utilities Commission of Ohio / Energy Choice Ohio, DSIRE, FirstEnergy, and IRS sources as of August 2026; Ohio net metering credits exports at the utility’s unbundled generation rate, the Ohio SREC market price moves and is often very low, and CEI supply and delivery rates change on a schedule, so confirm current terms with the Public Utilities Commission of Ohio, CEI, and your installer before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the net-metering credits, tax credits, and SREC value go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Savings are not guaranteed. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
