Updated 1 month ago
Going solar with American Electric Power Ohio (AEP Ohio)
Written by
Jamie Smith
Find out how much solar panels can save you on your AEP Ohio bills
American Electric Power (AEP) is one of the longest-running utility providers in the country. AEP serves nearly 5.5 million customers in the service territories across 11 different states.
AEP operates in Ohio and is the largest utility company servicing the state. If you’re tired of paying high AEP bills, installing solar panels could help! Let’s take a look at what you need to know before going solar with AEP Ohio.
Key takeaways
-
The average 6 kW solar system in Ohio will cost around $15,000 before incentives, averaging out to about $2.50 per watt installed.
-
AEP Ohio does not offer true net metering, but instead offers an alternative net billing program that offers compensation for excess solar credits at a rate that is slightly lower than the full retail electric rate.
-
AEP Ohio does not offer any solar-specific rebates or incentives to its customers besides its net billing program.
-
Going solar with AEP Ohio requires filling out an interconnection application and getting your system properly inspected before you can get your system up and running.
How much does solar cost in Ohio?
The average 6 kilowatt (kW) solar system in Ohio will cost around $15,000 before any incentives are applied. That is an average cost of $2.50 per watt installed in Ohio – cheaper than the current national average solar installation price of $3.00 per watt.
The total amount you’ll pay for solar will vary with how many solar panels you install. The table below shows how much homeowners can expect to pay for different solar system sizes before and after the federal tax credit is applied.
System size | Total before tax credit | Total after tax credit |
|---|---|---|
4 kW | $10,000 | $7,000 |
6 kW | $15,000 | $10,500 |
8 kW | $20,000 | $14,000 |
10 kW | $25,000 | $17,500 |
Keep in mind this is a rough estimate. The total cost of your solar installation will rely on more than just your system size. Your home’s electricity usage, roof characteristics, solar equipment you use, and even how you finance your solar panels all impact how much you’ll pay for solar.
Does AEP Ohio offer net metering?
AEP Ohio does not offer full-retail net metering. Instead, they offer an alternative Net Energy Metering service, which compensates customers who generate their own electricity.
Under AEP’s Net Energy Metering program, your system's solar energy will fully cover the cost of your home’s monthly energy usage. If your solar panels produce more electricity than your home uses, AEP will still credit you for the excess energy but at a rate lower than the full electric rate.
In 2024, excess energy will be credited at $0.11 per kilowatt-hour (kWh). This rate is determined by the Generation Energy Rider that AEP Ohio offers, and does not include the other monthly charges that can be attached to your bill – such as other generation components, distribution, or transmission chargers and riders.
How do net energy metering credits appear on your AEP Ohio bill?
When your solar system generates more energy than what is used during a billing period, it is also known as “negative kWh”. That credit is calculated by your usage and applied to your current monthly bill.
These credits can only be carried forward to reduce future energy bills and cannot be “cashed” out in a check form. So, if you decide to stop service with AEP Ohio for any reason, those credits will be lost.
Does AEP Ohio offer any solar rebates or incentives?
AEP Ohio does not offer any incentives to customers who install solar systems to their homes.
However, Ohio residents do have access to the federal solar tax credit, which is worth 30% of their installation costs, as well as a sales tax exemption for purchasing solar.
Steps to going solar with AEP Ohio
Before you can get your solar system up and running, you must complete some paperwork and other necessary steps. To give you a clear idea of what to expect, here’s an outline of the interconnection steps to going solar with AEP Ohio.
Design your system: Before you can apply for interconnection, it’s necessary to consult with your chosen solar installer to design a system that will fit on your roof and give you optimal results.
Apply for interconnection: Once you get the details of the layout of your solar system, you can fill out AEP Ohio’s application for interconnection service, where the utility determines if your designed system meets all technical and safety requirements.
Sign the Interconnection Service Agreement: After AEP Ohio approves your system, the approval will be sent back to you in the form of an Interconnection Service Agreement. This agreement will arrive within 35 days of a fully completed application.
Install your solar system and AC disconnect switch: Once you sign the Interconnection Service Agreement and send it back to AEP, you are then given the green light to install your solar system, which will include an AC disconnect switch that is necessary to turn your system on.
Schedule a post-installation field verification: After your system is installed, reach back out to a representative from AEP to schedule a post-installation field verification, which is just an inspection of your system to ensure it is in line with regulations.
Install your net meter: If your solar equipment passes the field verification, AEP will then install the proper electric meters so you can participate in net energy metering.
Turn on your system: Once AEP installs your net meter, they will notify you to turn on the AC disconnect switch, allowing your system to run.
This entire solar installation process should only take a few weeks to complete, but it can all depend on AEP's availability and responsiveness. In a worst-case scenario, it can take up to a few months to have your system up and running.
Should you go solar with AEP Ohio?
When going solar with AEP Ohio, you have the opportunity to save money on your electricity bills each month.
Aside from the federal tax credit, the state of Ohio gives you access to a sales tax exemption, and property tax exemption in a few select cities when you install solar, which can help you save on your installation costs.
The downside is that AEP Ohio doesn’t credit excess solar generation at the full retail rate, leading to lower solar savings than other areas, and no utility-specific solar incentives are available.
Going solar with AEP Ohio FAQ
Jamie is a Content Writer and researcher at SolarReviews. A recent graduate of La Salle University in Philadelphia, Jamie earned her B.S. in communications with a concentration in journalism, mass media, and public relations. Jamie has previously worked at a marketing company where she had the opportunity to highlight and promote small business owners through long-form stories and interviews. With a deep-rooted passion for creativity, Jamie stri...
Learn more about Jamie Smith