One of the most compelling financial benefits of residential solar energy is the Federal Solar Investment Tax Credit (ITC). For years, this incentive has helped homeowners reduce upfront costs and accelerate their return on investment. But now, as political priorities shift in Washington, many are asking: Why is the residential federal solar tax credit at risk? 

In this article, we’ll break down “Why Is the Residential Federal Solar Tax Credit at Risk?”, how the ITC works, the impact it’s had on homeowners, why it’s now under scrutiny, and what you can do if you’re considering going solar in 2025.

What is the Residential Solar Investment Tax Credit?

The Residential Solar Investment Tax Credit (ITC)—also known simply as the solar tax credit—allows homeowners to deduct 30% of the cost of a solar energy system from their federal taxes owed. This includes solar panels and solar energy storage systems (batteries).  

Here’s how it works in practice: if your solar installation costs $25,000, you could claim $7,500 in tax savings through the ITC, provided you have sufficient tax liability. 

To qualify for the credit: 

• You must own (not lease) your solar energy system. 

• The system must be installed on your U.S. residence. 

• You must owe federal taxes (the credit offsets what you owe, it’s not a refund or rebate). 

There is no cap on the amount you can claim. Whether your system costs $15,000 or $50,000, you’re eligible to claim 30% of the total system cost as a tax credit.

What Impact Has the Residential Solar Investment Tax Credit Had on Homeowners?

The ITC has played a major role in the rapid growth of residential solar across the U.S. Since its inception in 2006, the credit has helped: 

• Reduce the cost of solar installations by thousands of dollars. 

• Make solar accessible to more middle-income families. 

• Spur the growth of solar jobs and local clean energy economies. 

In 2022, the ITC was restored to its original 30% rate (previously on a step-down schedule), and extended it through 2032. This created a decade-long runway for homeowners to make informed decisions about solar, and for the industry to invest in long-term growth. 

Many homeowners use the ITC to significantly reduce their payback period— in Ohio, often to 7–10 years or less. It’s one of the top reasons homeowners decide to go solar.

Why Is the Residential Federal Solar Tax Credit at Risk?

As of early 2025, political leadership in Washington has shifted. With President Trump returning to office and changes in congressional control, federal priorities—especially those involving energy—are under review. 

While no changes have officially been made yet, reductions to the solar tax credit are being seriously considered as part of the new federal budget. 

From our experience, if you get your solar project installed in 2025, you’re likely to still benefit from the full credit—but acting sooner rather than later is the safest way to lock it in. We’re currently scheduling into the fall. 

Who Will the Elimination of the Tax Credit Impact?

If the solar tax credit is reduced or eliminated, the impact will be felt most by: 

• Homeowners planning to install solar in 2026 or later who could lose access to thousands in savings. 

For the average homeowner, losing the ITC could mean missing out on $7,000–$10,000 in tax credits. 

What Can You Do Right Now?

If you’re considering solar, here are three actions you can take today: 

✅ 1. Start Your Solar Project Now 

With the 30% credit still in place, 2025 is a great year to go solar. Starting your project now helps you lock in the full incentive—even if changes are solidified later this year. 

📢 2. Contact Your Representatives 

Let your elected officials know that the residential solar tax credit matters to you.  

📣 3. Spread the Word 

The more people understand what’s at risk, the more powerful our collective voice becomes. Share this blog post or use the hashtag #SaveSolarTaxCredit on social media to raise awareness. 

Why Is My Electric Bill So High in Ohio This Summer? The Real Reasons Behind 2025’s Electric Rate Spikes—and What to Do

Ohioans Are Asking: Why Are Electricity Bills Skyrocketing in Summer 2025? 

If you opened your electric bill this summer and were shocked by a significant jump in your total charges, you’re not alone. Many Ohio residents—including AEP Ohio customers—are seeing electric rates rise by 10% to 30%, depending on how their electricity is supplied. 

So, what’s behind the increase, and what can you do to take control of your energy costs? 

Let’s break it down.

1.The Main Culprit: Skyrocketing Generation Supply Costs

If you’re on AEP Ohio’s Standard Service Offer (SSO)—which means you haven’t chosen your own energy supplier—your generation supply charge increased by about $27/month starting in June 2025 (based on 1,000 kWh usage). That’s nearly a 28% jump. 

💡 These are “pass-through” charges from the wholesale electricity market, where energy suppliers bid to serve your home. 

 2. Why Generation Prices Are Up: PJM Capacity Auction Shock

Ohio’s power grid is managed by PJM, a regional transmission organization that spans 13 states. Each year, PJM holds an auction where energy suppliers bid to reserve power capacity for future demand. 

In the 2024 auction for the 2025-2026 cycle, capacity prices surged by 833% compared to the previous year. That cost gets passed directly to you as part of your generation charges. 

📈 Why the Surge? 

• Increased demand from state population growth, heat waves, and the expansion of data centers. 
• Decreased supply as older coal and gas plants retire faster than new sources come online. 
• Regulatory lag in approving new energy projects. 

3. Not Everyone’s Paying More—Here’s Why

If you’ve: 

• Chosen a competitive energy supplier with a fixed-rate plan, or 
• Participate in a governmental aggregation program, your bill may not have spiked—or not as much. 

This is because these customers are not on AEP Ohio’s SSO and may be locked into more favorable rates secured before the capacity price hike. 

💡 Tip: Check out energychoice.ohio.gov to see if switching suppliers could save you money. 

4.Are There Any Decreases on Your Bill?

Yes—though they may not offset the increases. This summer we saw:  

• Transmission charges dropped by about $9/month 
• Distribution-related charges dropped by around $5/month 

But if you’re an SSO customer, you’re still looking at a net increase of about $13/month or more.

5. How to Take Back Control of Your Energy Costs

Electricity prices are volatile and largely out of your control—but your energy usage and sourcing aren’t. Here’s what you can do right now: 

✅ 1. Shop for a Fixed-Rate Electricity Supplier 

Visit the PUCO Apples to Apples comparison tool and explore fixed-rate plans to avoid future shocks. 

✅ 2. Go Solar and Generate Your Own Power 

Solar energy puts the power back in your hands—literally. With a rooftop or ground-mounted solar system: 

• You can lock in predictable electricity costs for decades. 
• Avoid supply auctions and pass-through market volatility. 
• Take advantage of federal solar tax credits and net metering incentives in Ohio. 

💬 Kokosing Solar specializes in helping homeowners and businesses in Ohio make the switch to clean, affordable solar power.

6. Looking Ahead: Will This Get Better in 2026?

There’s some hope. PJM has introduced market reforms that cap future capacity prices. That could mean smaller increases in 2026 and beyond. 

But with extreme weather and energy demand still rising, volatility will likely continue. 

☀️ Want Protection from the Next Rate Spike? 

Talk to Kokosing Solar about going solar and taking control of your energy future. With a system custom-designed for your home or business, you’ll never have to ask “Why is my electric bill so high in Ohio this summer?” again. 

📞 Contact Us Today or request your free solar consultation. 

Blackman Solar Garden Groundbreaking

BLACKMAN TOWNSHIP, Mich., May 2, 2025 – Kokosing Solar joined local leaders, Consumers Energy representatives, and members of the Jackson County community today for the Blackman Solar Gardens groundbreaking —a 2.5 megawatt (MW) community solar facility that will power approximately 2,500 homes and businesses when completed by the end of 2025. 

The ceremony marked the official start of construction on Consumers Energy’s fourth community solar facility, expanding its Solar Gardens program. Spanning 30 acres and featuring nearly 5,000 solar panels, the Blackman Solar Gardens site will offer Michiganders a new opportunity to participate in renewable energy without installing solar panels on their own homes or properties. 

“We want to continue working with the community as we build Blackman Solar. And we hope to find more opportunities in the future. We want to collaborate with more local leaders interested in developments just like Blackman Solar.” said David Hicks, Consumers Energy’s Vice President of Clean Energy Development. 

As the design-build contractor, Kokosing Solar will manage all phases of construction, including sitework, single-axis tracker installation, panel and inverter installation, and system commissioning. 

Brady Phillips, Vice President of Kokosing Industrial’s Private Industrial Group, addressed attendees during the groundbreaking event. 

“We’re honored to be part of this forward-looking project for Jackson County and the state of Michigan,” said Phillips. “Kokosing has been building essential infrastructure since 1951, and our solar division has delivered solar projects since 2000—25 years of navigating the ‘solar coaster.’ We’ve gained resilience, expertise, and a deep commitment to quality.” 

Phillips emphasized Kokosing Solar’s local hiring and focus on skilled union labor, noting that 20 local tradespeople will be employed at peak construction. “These are good-paying, future-focused jobs that stay right here in the community,” he added. 

Construction is underway and will continue throughout the year. The Blackman Solar Gardens facility is expected to begin generating renewable electricity by December 2025. 

Kokosing Solar is proud to partner with Consumers Energy on a project that provides long-term value to Michigan’s ratepayers while helping the state transition toward a more sustainable energy future. Project updates and construction milestones will be shared in the months ahead. 

Can You Claim the 30% Tax Credit for Battery Storage After Your Solar Panels Are Installed?

In 2025 you’re wondering if the solar tax credit applies to batteries. If you’ve already installed a solar energy system on your home and claimed the 30% federal tax credit, you might be wondering: Can I still claim that same tax credit later if I decide to add battery storage? 

It’s a common—and important—question, especially as more homeowners look to add energy storage to maximize their solar investment. While we’re not tax professionals and always recommend speaking with a licensed tax advisor, here’s what we do know based on current IRS guidance and precedent rulings. 

Short Answer: Yes, You Can—If It Meets IRS Requirements 

Thanks to the Solar Tax Credit (otherwise known as the ITC, or Investment Tax Credit), homeowners who install eligible battery storage systems in 2023 through 2032 can claim a 30% tax credit on the full cost of the battery system, even if it’s installed after the solar panels—as long as it meets certain criteria. 

This tax credit covers: 

• The cost of the battery 
• Installation labor 
• Wiring and equipment needed to integrate the battery with your existing solar energy system 

This is supported not only by the current IRS guidelines, but also by IRS Private Letter Ruling 201809003, which confirms that a battery added after solar panels can still qualify as a “qualified solar electric property expenditure” if it: 

1. Is used to store solar energy, and 
2. Is charged exclusively by the solar system. 

What the IRS Says About Battery Storage 

According to the IRS Residential Clean Energy Credit page, you can claim 30% of the cost of new, qualified battery storage technology with a minimum capacity of 3 kWh. This credit applies to battery systems installed from January 1, 2023, onward. 

Key qualifications: 

• The battery must be new (not used). 
• It must be installed in your primary or secondary residence in the U.S. 
• If the battery is charged by your solar panels and used solely for home energy, it’s likely to qualify. 
• The tax credit is nonrefundable, but unused credit can be carried forward to future tax years. 

How the Tax Credit Applies When Installed Later 

Here’s the good news: If you claimed the 30% tax credit for your solar panel system in one tax year, you can still claim a separate 30% credit in a future year if you later add battery storage. 

Your battery system is treated as its own qualifying project, and the IRS considers the “expenditure made” when the battery is installed, not when the solar system was placed in service. That means: 

• You’ll file Form 5695 for the tax year the battery was installed. 
• You can claim 30% of the battery system cost, assuming it meets IRS eligibility. 

Best Practices to Ensure Solar Battery Tax Credit 2025

To maximize your chance of qualifying: 

• Ensure your battery is charged only by solar energy. IRS precedent strongly supports storage systems that are solar-charged only. 
• Keep documentation showing how your system is integrated and how the battery charges. 
• Choose a qualified installer who can certify the battery is used for solar energy storage. 

Why Add Battery Storage Later? 

Many homeowners install solar panels first and add batteries later due to: 

• Budget considerations 
• Technological improvements 
• Grid reliability concerns 
• Interest in time-of-use optimization or blackout protection 

Adding batteries later gives you flexibility—and thanks to the IRS’s current guidance, it can still be financially advantageous. 

Solar Battery Tax Credit 2025

Yes—you can still claim the 30% solar battery tax credit in 2025, even if you add the battery after your solar panels. The IRS has made it clear that energy storage qualifies as long as it meets the proper criteria and is installed in a separate tax year. But as always, speak with your tax professional before making financial decisions. 

And if you’re considering battery storage to complement your solar system, Kokosing Solar can help you design and install a system that qualifies for federal incentives and delivers reliable, renewable power. 

Interested in Adding Battery Storage to Your Solar System?
Contact Kokosing Solar today for a no-obligation consultation and learn how we can help you maximize your energy independence and your tax credit. 

Power When You Need It Most ⚡ 

At Kokosing Solar, we’re always looking for ways to help homeowners take control of their energy. That’s why we’re excited to introduce the Franklin aPower2—a cutting-edge battery storage solution designed for reliability, efficiency, and energy independence. 

🔋 Why Choose the Franklin aPower2?
✔ 15 kWh capacity – Power through outages with industry-leading storage.
✔ Smart monitoring & control – The Franklin App helps you track energy use, prepare for storms, and optimize efficiency.
✔ EV integration – Use stored energy to power your home or charge your electric vehicle.
✔ 15-year warranty – Long-term reliability you can count on. 

With the Franklin aPower2, you can store excess solar energy, reduce dependence on the grid, and keep your most important appliances running—even when the power goes out. 

Ready to take the next step toward energy security? 

Fill out the form to learn more or schedule a consultation with our team. 

SREC Residential Ohio: How Homeowners Can Benefit from Solar Renewable Energy Certificates 

If you’re a homeowner in Ohio considering solar, you’ve likely heard about Solar Renewable Energy Certificates (SRECs)—but what exactly are they, and how can they benefit you? At Kokosing Solar, we help homeowners understand how to maximize their solar investment, and SRECs are an important piece of the financial equation. 

What Are SRECs? 

A Solar Renewable Energy Certificate (SREC) represents the environmental benefits of generating solar energy. For every 1,000 kilowatt-hours (kWh) (or 1 megawatt-hour (MWh)) of electricity your solar system produces, you earn one SREC. These certificates can then be sold in energy markets to utilities and businesses that need to meet renewable energy requirements. 

How Many SRECs Will My Solar System Produce? 

The number of SRECs you generate depends on your solar system’s size. On average, a 1-kilowatt (kW) solar system produces about 1 SREC per year. Here’s what that looks like for common residential system sizes: 

• 5 kW system → Approximately 5 SRECs annually 

• 10 kW system → Approximately 10 SRECs annually 

Since most residential solar systems in Ohio range from 5kW to 10kW, homeowners can expect to generate multiple SRECs per year, creating a valuable income stream. 

How to Sell Your Residential SRECs in Ohio 

Homeowners can sell their SRECs through brokers, aggregators, or direct buyers. At Kokosing Solar, we recommend Sol Systems, a trusted SREC management company that simplifies the process: 

1. State Certification & Registration 
2. Sol Systems helps register your system with PJM-EIS GATS, the tracking system required to convert solar production into SRECs. 
3. Certification typically takes 60 to 90 days after installation. 
4. Solar Reporting 
5. You’ll submit solar production data to Sol Systems at a regular cadence.  
6. Sol Systems updates your account and manages SREC sales for you. 
7. Receive Payment for Your SRECs 
8. Homeowners can choose between lump-sum upfront payments or recurring payments over time based on market pricing. 

What Is the Current Value of Ohio SRECs? 

As of recent reports, Ohio SRECs are valued at approximately $3. However, Ohio-based solar systems can also qualify for Pennsylvania’s Tier 1 SREC market, which currently offer a better return. 

To ensure homeowners get the best possible value, Kokosing Solar recommends Sol Systems’ Sol Upfront contract, which provides a one-time, lump-sum payment for 15 years of SREC production. For those who prefer ongoing income, Sol Systems also offers a 3-year Sol Annuity option. 

💡 SREC pricing fluctuates monthly—check with Sol Systems for the latest rates and contract options. 

How and When Do You Get Paid? 

Once your system is fully certified and registered, Sol Systems issues payment within 15 business days. The lump-sum payout is made after state and regional approvals are finalized. 

Key Considerations for Homeowners 

• SREC prices fluctuate, so securing a contract at the right time is key. 

• Market values can vary depending on Ohio vs. Pennsylvania Tier 1 eligibility. 

• SREC income may have tax implications—consult with a tax professional. 

Maximizing Your Solar Investment with SRECs 

SRECs provide Ohio homeowners with a unique financial opportunity to earn extra income from their solar systems. Whether you choose a lump-sum payment or ongoing payouts, leveraging SRECs can help offset your initial solar investment and increase long-term savings. 

Want to learn more? Fill out the form below to explore your solar options and discover how to make the most of your SRECs. 

Helpful Resources: 

• Sol Systems PA-Tier-1-REC Contract Options

• Sol Systems Payment Schedule 

As more homeowners explore the benefits of solar energy and battery storage, we often hear questions about system flexibility, grid independence, and battery expansion. In this blog, we’re answering some of the most common questions we receive about solar batteries, like the Tesla Powerwall and Franklin aPower2, and how they fit into your home energy strategy. 

Can I Add a Second Battery Unit in the Future? 

Yes! Today’s battery storage systems are modular, meaning you can start with one unit and add more later as your energy needs grow. Whether your household’s electricity usage increases over time, or you want to expand your backup power capacity, adding an additional battery is a straightforward process. 

What Happens to a Grid-Tied Solar Battery Storage System When the Grid is Down? 

When the power grid goes down, a grid-tied solar system with battery storage automatically switches to island mode, meaning your home runs off stored solar energy instead of drawing from the grid. This transition happens seamlessly with the help of your inverter and battery system, ensuring you have backup power when you need it most. 

Here’s what technically happens when the grid goes down: 

1. Solar Panels – If the sun is shining, your solar panels will continue to generate electricity. However, instead of sending excess energy back to the grid, this energy is directed to charge the battery and power essential home loads. 
2. Inverter – The inverter plays a critical role in detecting grid outages. When the grid goes down, the inverter disconnects from the utility grid to prevent power from being sent back onto the grid—a safety requirement known as anti-islanding protection. The inverter then shifts to off-grid mode, converting the DC electricity from your battery into AC power for your home. 
3. Battery System – Your battery takes over as the primary power source, discharging stored energy to keep essential circuits running. If the battery is connected to solar, it will recharge during daylight hours, extending backup power for as long as possible. Both the Tesla and Franklin battery offering allow you to prioritize certain loads in real time on your app, like refrigerators, medical devices, or well pumps, to make the most of your stored energy. (click here for a grid outage demo featuring the Tesla App) 

How is This Different from When the Grid is Online? 

Under normal conditions, a grid-tied solar system operates as follows: 

• Solar panels generate electricity, which is first used to power your home. 

• Excess energy is either stored in the battery or sent back to the grid for credits (net metering). 

• Your home still draws power from the grid when solar production is low or at night. 

When the grid is down, your system must island itself to prevent unsafe electricity flow back onto power lines. Instead of feeding power to the grid, your system prioritizes using solar energy for your home and battery to keep essential loads running. 

This setup ensures energy security and self-sufficiency, especially during unexpected outages. Want to learn more about how battery storage can enhance your solar system? Contact us today! ☀️🔋 

Can I Install Fewer Solar Panels to Only Charge a Battery Unit for EV Charging? 

Technically, solar panels can be installed just to charge a battery, but it’s not an economical solution for residential customers. The size of the battery system must be carefully matched with the solar array and the energy loads it will support. At Kokosing Solar, we design solar and battery storage systems to optimize energy efficiency and savings, rather than as standalone EV charging stations. 

Can I Install Fewer Solar Panels to Only Charge a Battery Unit for Backup Power? 

Similar to the EV charging question, installing a solar and battery system solely for backup power in case of a grid outage is not the most cost-effective approach. Your battery capacity, solar array size, and backup power needs should all be carefully balanced to maximize your investment and energy independence. Our team ensures that every system we design provides practical, long-term value for your home. 

The Bottom Line 

Solar and battery storage solutions offer energy security, cost savings, and flexibility, but they work best when designed as part of a comprehensive system. If you’re considering adding a battery backup to your home solar setup, our team is here to help you find the best solution for your energy needs. 

Have more questions? Fill out the form below to learn more about solar + battery storage! ☀️🔋 

According to Freddie Mac’s updated guidelines regarding solar appraisal value (effective 08/07/2024), solar panels can increase your home’s value—if you own them. But if your panels are leased or under a PPA, they won’t be included in the appraised value. 

For properties where the homeowner owns the solar panels outright or finances them as a fixture to the property (such as through a loan secured by the property), solar can add value to the home and be considered in the appraisal. 

However, if the solar panels are part of a lease or power purchase agreement (PPA) where the panels are not owned by the homeowner (e.g., financed separately with the panels as collateral), solar does not add to the appraisal value. This is because the panels can be repossessed or are not considered part of the property itself. The appraiser will still comment on the marketability of the home with solar panels, but they won’t include the panels’ value in the appraisal. 

Understanding how solar impacts property value is key when buying or selling a home. Learn more about Freddie Mac’s guidelines on energy-efficient homes and solar panels here.  

When assessing the solar appraisal value, appraisers typically look at how solar panels contribute to the overall value of a property. For homes with owned solar systems, appraisers will consider the potential energy savings and the increased marketability of the property due to its energy-efficient features. Homes with solar panels that reduce utility costs are seen as more desirable, particularly in markets where sustainability is a priority for buyers. Additionally, locations where electricity costs are rising or known to be high may make an owned solar asset increase the value of the property.

Solar Ownership

The key factor in determining the solar appraisal value is ownership. The panels are considered part of the property and their value can be reflected in the appraisal, if a homeowner has outright ownership of the solar panels or has financed them through a loan that is secured by the property. This can translate into a higher sales price or more favorable financing terms when selling the property.

Solar Lease

On the other hand, leased solar systems or those under a PPA are not treated the same way in an appraisal. Since the homeowner does not own the solar panels, the appraiser will not factor them into the home’s value. As a result, buyers may be less inclined to pay a premium for a home with a lease or PPA, as they won’t directly benefit from the energy savings or increased property value associated with ownership. Understanding these nuances can help homeowners make more informed decisions when it comes to solar investments and their long-term financial impact.

PJM Residential Energy Increase: On July 31, 2024, PJM, Ohio’s regional transmission organization, which coordinates the movement of wholesale electricity in all of Ohio, announced that the “cost of capacity” for most of its utilities will increase substantially on June 1, 2025.

What are Capacity Charges?

For electricity to flow and the lights to stay on, the electrical grid must ensure that it has enough supply to meet the demand of all the customers using electricity.  Capacity refers to the amount of electricity the grid needs to meet this “peak” demand and make the grid reliable.

Capacity charges are one component of the energy bill that ensure that the grid remains reliable by meeting customer demand. Recent shifts in the capacity of the PJM grid (due to increasing energy demand, retirement of outdated power plants and a change in how the reliability of different power plants are measured) have led to a major jump in the capacity price when the auction was held at the end of July this year.

What do the Upcoming Changes Look Like?

Many electricity consumers across Ohio have seen jumps in electricity rates over the last 1-2 years. Before now, rates rose steadily between 3-6% a year. But if you’ve been paying attention to your bill, you may have noticed as much as a 30% jump in the price you’re currently paying for electricity. The major jump in capacity pricing that was announced on July 31, 2024, will lead to even more significant increases in the “cost of capacity” moving forward, which will eventually find its way into the electric bills of Ohio consumers.

It is our understanding that retail electricity suppliers—like AEP, AES, Duke Energy, or First Energy, for example—will likely pass these increased costs down to ratepayers through increased tariff charges or electricity rates.  Industry analysts predict that residential customers may see an increase of around 2 cents per kilowatt hour, though the actual change could be slightly more or slightly less.

Timing

Utility companies will begin paying the increased rate starting June 1, 2025.  Rates your utility charges change up to five times per year, depending on utility. Historically these rate changes happen January 1, April 1, June 1, July 1 and October 1.

With numerous variables at play, it’s difficult to pinpoint the exact timing or extent of these rate increases. We also expect that your electricity company will soon start communicating with you when these upcoming rate changes will take place.

PJM Residential Energy Increase

This recent capacity charge change was part of an auction that historically has happened annually and was delayed for 3 years. The next capacity auction will be held again in December 2024, and this future auction will dictate future capacity charge rate changes that will take place beginning June 2026, likely leading to another jump in rates.

Looking at the complete picture, we are beginning to see the cost impacts of what has been a long time coming – the need for infrastructure upgrades, the increased demand for electricity, and the navigation needed to meet the changing market – will come in the form of costs passed down to ratepayers over the next couple of years.

The Solar Solution

Installing a residential or commercial solar energy system is a smart way to hedge against rising utility costs. By installing solar panels, you lock in a rate you’ll pay for that portion of your electricity for the next 25-30 years.

Think about it this way: If you could go back to 2019 and lock in your weekly grocery bill for the next 25-30 years, would you do that? With solar, you’re essentially locking in the rate you pay for electricity – at a known, fixed rate – for the lifetime of the solar PV system.

We’re looking ahead at what will surely be electricity rate increases for utility customers across Ohio. Our recommendation to them: Lock in your electricity prices now by installing onsite solar energy.

On July 31, 2024, PJM, the regional transmission organization responsible for coordinating wholesale electricity movement in Ohio, announced a significant increase in capacity charges that will begin on June 1, 2025. This change will likely lead to rate increases for many customers, which we will discuss in detail in this post.  

What Are Capacity Charges? 

Capacity charges are one component of the energy bill that ensures that the grid remains reliable by meeting customer demand. Recent shifts in the capacity of the PJM grid (due to increasing energy demand, the retirement of outdated power plants, and a change in how the reliability of different power plants is measured) led to a major jump in the capacity price when the auction was held at the end of July this year. The PJM cost of capacity will increase from ~$29/MW-day to $270/MW-day – this 800% capacity charge will affect different customer types in different ways, but the general trend will raise costs. 

PJM Commercial Energy Increase

Commercial electricity consumers in Ohio have already experienced rising rates in the past few years. This increase in capacity charges will likely result in further increases, especially for those with competitive contracts from CRES providers. The exact amount each customer’s bill goes up will vary based on their energy usage patterns and supplier but will likely range between 1-4 cents per kWh. A business with a very steady energy load (such as a factory with a continuous 24-hour process) might see a modest increase of 1.4 cents per kilowatt hour, a company with highly variable demand (such as a welding operation) could experience increases at the higher end of the range. 

Timing and Future Auctions 

These new capacity charges will take effect on June 1, 2025. Though we don’t know about the official timing, businesses should expect to see these increases reflected in their energy bills around that time at the latest. Businesses with a multi-year CRES contract may still be exposed to these rate jumps if their supply contract has a “regulatory change clause” allowing for an adjustment in the long-term rate. While this rate hike is significant by itself, it is likely to be followed by another one, as the next capacity auction is scheduled for December 2024, setting the capacity charge for the year beginning on June 2026. 

The Solar Solution 

For commercial entities, installing an onsite solar energy system is a strategic way to hedge against rising utility costs. By investing in solar, you can lock in a portion of your energy rates for the next 25-30 years, safeguarding your business against future rate hikes.  

If your business could have locked in the cost of materials at 2018 prices for the next 25-30 years – would you have? Going solar represents doing just that – locking in prices for your electric bill.  

As energy costs continue to climb, now is the time to secure your company’s financial future by exploring solar solutions that insulate your organization from this energy volatility. 

Anyone who has lived or is currently living in a homeowner’s association (HOA) community knows of the rules and regulations behind property styles. The HOA rules are in place to keep a neighborhood’s aesthetics standardized in the area. Since 2022, Ohioans have new guidance on how communities governed by HOAs can restrict solar in Ohio. Often, we must work with you and your HOA to learn the standing rules, but ultimately, we often can abide by the rules and get you your beautiful solar panels, too.  

Understanding HOA Restrictions on Solar Installations 

In 2022 after the passing of Senate Bill 61, Solar Companies and members of HOA governed communities celebrated, understanding that SB61 prevented HOAs from creating anti-solar rules. However, the issue is a little more complicated than this. 

Within Ohio, after the passing of SB 61, HOA communities are still able to “establish reasonable restrictions on solar” meaning there is wiggle room.  

Across Ohio, solar panels are allowable unless specifically regulated in the bylaws or deeds for a homeowner’s association. Reaching out to the right solar company will help make the process flow smoothly. Here at Kokosing Solar we have an abundance of amazing team members who are ready to answer your questions. 

Working with and around HOA and Solar 

Does your HOA have solar restrictions already set in place? 

Aesthetics is typically the biggest concern of the HOA. Today, we have options for sleek all black panels with efficient technology. The panels we installed today aren’t the blue panels with silver frames that you may have seen in the past. Some HOAs don’t know this.  

There are also ways to carefully place the panels in a form that suggests aesthetic – think a perfect square or rectangle or, in many cases, we can add panels to non-street facing sides of the house. These are typical concerns we see from HOA boards when addressing solar panel installation.  

Working in teams is also beneficial when navigating HOA approval. Teaming up with immediate neighbors who will be a wave of support will earn brownie points in front of the board. The HOA wants anything but backlash from the neighbors, therefore, having majority of the neighborhood on your back will present a stronger proposal statement.  

At the same time, keeping up to date with solar homes in nearby areas is an important leverage we can use. If other homes have solar, what type of panels are they using? Where has the solar been placed? What restrictions did they have? Other nearby homes who already have solar may help your proposal since it shows other HOAs allows solar and could influence your HOA to go forward with your solar.  

Proposal Content to Include for your Homeowners Association  

Making you sure have the right and most important language in a proposal is key. Include ideas such as increasing home reseal value, ensuring aesthetics of home remain the same if not better, including data to show the environmental benefits of solar, stressing the desire to want to work with the HOA instead of against it, and, of course, include the best photos of high-quality residential solar installations. All these tips will help you find an advantage when working with your HOA.  

If Proposal Is Declined/Next Steps 

In some cases, HOA can still disapprove an installation. From here, one option would be to obtain a letter from your attorney addressing the situation and speaking on the concerns. Here, you can provide the legal supporting documents for your case. Typically, it should not come down to this. 

To date, we are not aware of any legal cases challenging SB61, however we could see this in the years to come as HOAs navigate this new rule.  

Kokosing and Your Homeowners Association  

Overall, Kokosing Solar is more than willing to help you navigate through this process. We have members ready to guide and provide necessary advice to new homeowners. HOA’s restrictions shouldn’t hold you back from your dreams of achieving those beautiful panels.