Net Metering vs. SRECs in Ohio: What Homeowners Need to Know 

When you start exploring solar for your home or business in Ohio, two terms come up often: net metering and Solar Renewable Energy Credits (SRECs). Both are incentives designed to reward you for going solar, but they work in very different ways. Understanding the difference can help you maximize the financial benefits of your solar investment. 

What is Net Metering in Ohio? 

Net metering is one of the most valuable incentives for Ohio solar owners. With net metering, your utility tracks how much electricity your solar panels produce compared to how much you use. 

When your system generates more electricity than you need, the extra power flows back to the grid. 

In return, you earn a credit on your utility bill for that surplus electricity. 

At times when your home needs more energy than your solar system is producing—like at night—you can use those credits to offset the electricity you pull from the grid. 

The result? Lower and more predictable electric bills. 

Ohio’s net metering policies are regulated by the Public Utilities Commission of Ohio (PUCO), and while the details vary by utility, net metering remains the main way solar owners save money in the state. 

What are Solar Renewable Energy Credits (SRECs)? 

While net metering reduces your monthly utility bill, SRECs provide an opportunity for additional income. 

Here’s how they work: 

For every megawatt-hour (MWh) of electricity your solar system produces, you earn one SREC. 

These credits can be sold on the open market to utilities or energy suppliers who need them to meet renewable energy requirements. 

Homeowners typically work with a broker or aggregator who manages the sale of SRECs and sends payment back to you. 

The catch? Ohio’s SREC market is relatively small, and the value of SRECs has dropped compared to other states with stronger renewable portfolio standards. That means Ohio homeowners usually see SRECs as a bonus, not the main source of savings. 

Ohio homeowners are allowed to sell their SRECs on other States markets. Your solar consultant can work with you to determine the best market for you.  

Net Metering vs. SRECs: The Key Differences 

Both incentives reward you for producing clean energy, but they work in very different ways: 

• Net metering directly lowers your electric bill every month. 

• SRECs are a tradable commodity that can bring in extra cash but fluctuate in value. 

• Net metering is regulated and relatively stable, while SRECs are based on market supply and demand. 

• Net metering provides ongoing savings, while SRECs usually generate occasional payments. 

Think of net metering as your everyday energy savings engine, and SRECs as a small side bonus. 

Which Incentive is More Valuable in Ohio? 

For most homeowners, net metering delivers the bulk of financial benefit. It ensures that every kilowatt-hour of solar energy you produce offsets your electric costs. 

SRECs, while still beneficial, tend to offer smaller and less predictable income in Ohio. For example: 

A 10 kW residential solar system may generate around 12 MWh per year. 

That equals about 12 SRECs annually. 

Depending on market value, those SRECs may only bring in a few hundred dollars per year—a nice perk, but not the main driver of savings. 

By contrast, net metering can reduce or even eliminate thousands of dollars in annual electricity costs. 

The Future of Net Metering and SRECs in Ohio 

Energy policy is always evolving, and both net metering and SRECs could change in the future. Some neighboring states have stronger SREC programs, while Ohio’s remains modest. Net metering is expected to remain a cornerstone incentive here, but keeping an eye on PUCO updates is important. 

What’s certain: homeowners who go solar now can lock in today’s net metering benefits while also enjoying whatever SREC value is available. 

Conclusion 

In short: 

• Net metering saves you money on your utility bills. 

• SRECs provide extra income but play a smaller role in Ohio. 

Together, they help make solar a smart financial choice—on top of the environmental benefits of using renewable energy.  

If you’re considering solar, now is the time to take advantage of these incentives. Kokosing Solar has been helping Ohio homeowners and businesses maximize their energy savings for 25 years. 

Contact us today for a free consultation and see how much you could save with solar.