Your wires utility in Dayton is AES Ohio, the company formerly called Dayton Power & Light. Ohio is a deregulated electricity state, so you also pick your own power supplier. Residential electricity runs about 19.5 cents per kWh (EIA, as of August 2026), and a typical 6 kW roof makes roughly 8,000 kWh a year. The 30% federal homeowner credit ended December 31, 2025.
Dayton homeowners have a solid case for rooftop solar, but the details here are different from the East Coast markets you may read about. Ohio is a deregulated electricity state, your local wires company is AES Ohio, and Ohio credits the power you export at a lower rate than the full retail price you pay. This page covers what solar really costs in Dayton, who your utility is, how AES Ohio credits your production, the Ohio incentives that are real versus the ones to verify, and the local permitting steps, then you can check your address in about a minute.
Why Dayton’s electric rates make solar worth it
The reason solar pays in Dayton is the price of the power it replaces. Ohio’s average residential electricity price is about 19.5 cents per kWh (EIA, as of August 2026). Every kilowatt-hour your roof produces offsets one you would otherwise buy, so a Dayton home with a larger monthly bill sees the fastest payback. Because Ohio is deregulated, the rate you pay has two parts: a generation, or supply, charge from whatever supplier you chose, and the delivery charge from AES Ohio. Solar offsets the whole bill when you use the power as you make it, which matters a lot in Ohio, as the next section explains.
Your production is what turns that rate into savings. According to MySolarFY’s analysis (August 2026), a standard 6 kW system in Dayton (ZIP 45402) is modeled to produce about 8,014 kWh a year, which at Ohio’s average residential rate near 19.5 cents per kWh is roughly $1,560 of grid electricity it could offset in a year. That figure comes from NREL’s PVWatts model paired with the current EIA rate, and your own number depends on your roof’s pitch, shading, and orientation, so estimate your specific roof with the free PVWatts calculator rather than a generic rule of thumb.
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Who is your electric utility in Dayton, and what deregulation means
Your wires utility in Dayton and most of Montgomery County is AES Ohio, the company formerly known as Dayton Power & Light, or DP&L. AES Ohio owns the poles and wires, reads your meter, and handles the interconnection and net metering for your solar system (AES Ohio net metering, as of 2026). That does not change no matter which supplier you use.
Ohio is a deregulated, or restructured, electricity state, and that is a real difference from a regulated state. You can shop your generation supply from any certified supplier through the state’s Energy Choice program, while AES Ohio always delivers the power and stays your utility for solar (Ohio Energy Choice, as of 2026). For solar, the practical point is that your bill has a supply part you can shop and a delivery part you cannot, and how Ohio credits your exported power reflects that split.
How AES Ohio credits the power your Dayton roof sends back
This is where Ohio differs from the full-retail net metering you see in states like Maryland or New Jersey. AES Ohio nets your production against your usage each month, but the power you export to the grid is credited at Ohio’s unbundled generation rate, not the full retail rate you pay (AES Ohio net metering, as of 2026). In plain terms, an exported kilowatt-hour is worth the supply, or generation, portion of the rate, while the delivery charges still apply to the power you pull back from the grid at night.
The takeaway is to use your solar power as you make it. Because exports earn the lower generation rate and self-used power avoids the full retail rate, a system sized close to your daytime and annual usage pays better than an oversized one built to bank big export credits. A home battery, or shifting heavy loads like laundry, EV charging, and pool pumps into daylight hours, raises how much of your own solar you use directly. For the mechanics of how credits work, see how net metering credits your solar exports, and for the statewide picture see our Ohio solar guide.
| What you earn or save | How it is valued in Ohio | Who receives it |
|---|---|---|
| Solar power you use yourself | Full retail value, since it avoids buying that kWh | The homeowner |
| Power you export to the grid | Ohio’s unbundled generation rate, below full retail | The AES Ohio account holder |
| Ohio SRECs | A market price per 1,000 kWh produced, variable and low | The system owner |
Ohio solar incentives: what is real, and what to verify
Beyond the bill savings, Ohio has a couple of programs that change the math for a Dayton home. One is solid, and one is real but worth confirming before you count on it.
- A property-tax exemption on the value your system adds. Ohio exempts qualifying solar systems of 250 kW or less from having their added value taxed as real property, which covers every home rooftop system by a wide margin (Ohio Revised Code 5709.53, as of 2026). Your assessment should not rise because of the panels.
- An Ohio SREC market, but verify the current value. Ohio has a solar renewable energy credit market tied to its renewable standard, so your system can earn one credit per 1,000 kWh it produces. Ohio SRECs trade far below what SREC states like Maryland or New Jersey pay, and the price moves, so treat any figure as something to verify with a broker and your installer before you bank on it (DSIRE Ohio incentives, as of 2026).
Because these are statewide programs that change over time, we keep the full detail on our Ohio solar guide and the cost breakdown on our Ohio solar cost guide rather than repeating it on every city page.
What the federal tax-credit change means for Dayton
The federal homeowner credit is gone, but Ohio’s programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Dayton 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 installer pages and search results asking whether the 30% credit is going away; the accurate answer for 2026 is that the homeowner version already ended. What did not change is the part that carries solar in Dayton: Ohio’s electric rates, the property-tax exemption, and offsetting your own AES Ohio power. 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 Dayton home: roof, panel, and permits
Most Dayton homes are a straightforward fit for solar, but two checks catch homeowners. Many of the area’s older houses in neighborhoods like South Park, St. Anne’s Hill, and the Oregon District have aging roofs that may need a structural look or a re-roof before panels go on, and older homes often still run a 100-amp electrical service that may need an upgrade to carry a modern system, a battery, or EV charging. A steep or heavily shaded roof also cuts production, which matters more in Ohio because exports earn only the generation rate.
Note on Dayton permitting: A rooftop solar project in the city of Dayton needs a building and electrical permit from your local jurisdiction, the City of Dayton or your Montgomery County municipality, plus an interconnection application approved by AES Ohio before the system can turn on (AES Ohio net metering, as of 2026). A local installer who has done AES Ohio projects will pull the permits and file the interconnection and net-metering paperwork for you, so ask any company to confirm they handle both.
| Dayton home or site factor | What to plan for |
|---|---|
| Older roof in a historic neighborhood | 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 |
| Shaded or steep roof | Lower production, which matters more since Ohio credits exports at the generation rate |
| Permits and interconnection | City or county building and electrical permit, plus AES Ohio interconnection approval |
Paying for solar in Dayton: 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 the incentives yourself, or avoid an up-front cost. You may see ads for free solar panels in Dayton, 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 the Ohio SRECs and any tax benefit. 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.
| Path | Up-front cost | Who keeps the incentives | 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 Dayton
Dayton has an active market of licensed installers, from local Ohio companies to national lease and PPA brands, which is good for you because it 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 licensing, with a licensed electrician on the job.
- A clear workmanship and equipment warranty in writing.
- Real experience with AES Ohio interconnection and net metering, so your approval and paperwork go smoothly.
- A written production estimate and a transparent quote that models Ohio’s generation-rate export credit, not full-retail net metering. 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.
Check which solar programs are available at your Dayton address →
Frequently asked questions
Is solar worth it in Dayton in 2026?
For most owner-occupied Dayton homes with decent sun, yes, though the math is different from full-retail net metering states. Ohio’s average residential electricity price is about 19.5 cents per kWh (EIA, as of August 2026), and a typical 6 kW roof produces around 8,000 kWh a year, so the power you use yourself offsets an expensive kilowatt-hour at full price. Ohio credits exported power at a lower generation rate, so savings are best when you use your solar as you make it. Savings depend on your roof, usage, and how you pay, and they are not guaranteed.
Who is my electric utility for solar in Dayton?
AES Ohio, the company formerly known as Dayton Power & Light or DP&L, is the electric distribution utility for Dayton and most of Montgomery County, and it handles your interconnection and net metering (AES Ohio net metering, as of 2026). Because Ohio is a deregulated state, you can also choose your generation supplier through the Ohio Energy Choice program, but AES Ohio still delivers your power and remains your utility for solar either way.
How does net metering work with AES Ohio?
AES Ohio nets your solar production against your usage each month, but the power you export to the grid is credited at Ohio’s unbundled generation rate, not the full retail rate you pay (AES Ohio net metering, as of 2026). That is different from full-retail net metering states like Maryland and New Jersey. The practical result is that the solar power you use yourself is worth the most, so sizing a system close to your usage and shifting big loads into daylight hours improves your payback.
Does Ohio have SRECs, and are they worth much?
Ohio does have a solar renewable energy credit market, so a registered system earns one credit for every 1,000 kWh it produces. Ohio SRECs trade far below the values seen in states like Maryland or New Jersey, and the price moves with the market, so treat any number as something to verify with a broker and your installer before counting on it (DSIRE Ohio incentives, as of 2026). Only the system owner earns the credits, so on a lease or PPA the company that owns the panels keeps them.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Dayton homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS, as of 2026). 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. Ohio’s electric rates and its property-tax exemption were not affected, so the local case for solar still holds.
What permits do I need for solar in Dayton?
A rooftop solar project in Dayton needs a building and electrical permit from your local jurisdiction, the City of Dayton or your Montgomery County municipality, plus an interconnection application approved by AES Ohio before the system can be switched on (AES Ohio net metering, as of 2026). A local installer experienced with AES Ohio normally pulls the permits and files the interconnection and net-metering paperwork on your behalf, so confirm any company handles both before you sign.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, AES Ohio, Ohio Energy Choice, Ohio Revised Code, DSIRE, and IRS sources as of August 2026; Ohio electric rates, the export credit rate, and Ohio SREC prices change over time, so confirm current terms with AES Ohio, your chosen supplier, 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 Ohio SRECs and any tax benefit 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. Ohio SREC values are variable and savings are not guaranteed. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
