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Ohio

An arrow graphic shows that Ohio's renewable portfolio standard is set at 12.5% in 2026.

Carve-out: 0.5% of total electricity generation must come from solar by 2026
Tracking system: Midwest Renewable Energy Tracking System (M-RETS) and PJM-Generation Attribute Tracking System (PJM-GATS)


Ohio's renewable portfolio standard (RPS) requires electric distribution utilities and electric services companies to generate a percentage of their electricity from renewables. Ohio froze its multi-year renewable ramp-up schedule of the RPS for two years in May 2014.

Ohio solar customers are eligible for real and personal property tax exemptions. The state also has a loan-funding program for solar deployment. The state has simplified and expedited interconnection review procedures in place for systems <25 kW and <5 MW respectively. First Energy has Solar Renewable Energy Certificate (SREC) and Renewable Energy Certificate (REC) programs in place for its customers.

Net Metering

Electric distribution utilities are required to offer net metering to customers. The capacity limit is implied to be sized primarily to offset part or all of the customer's electricity demand.

System size limit: No limit specified

Aggregate cap: No limit specified

Credit: Net excess generation is credited at the utility's unbundled generation rate; hospitals will be credited at the market value at the time of generation.

RECs: Not addressed

Meter aggregation: Virtual net metering is allowed for state, municipal, and agricultural customers. Other customers may participate in virtual net metering as a "beneficial account" under a state, municipal, or agricultural host under certain conditions. Net excess generation from virtual net metering facilities is credited at the retail rate plus a declining percentage of the transmission and distribution charges billed to beneficial accounts.

Interconnection

Three levels of review for the interconnection of distributed generation systems up to 20 MW in capacity.

Eligible Systems Type of Interconnection
Inverter-based distributed generators ≤25 kW Level 1: Simplified review procedure that allows interconnection request reviewed within 15 business days and a standard interconnection agreement within 5 business days of determination.
Inverter-based or synchronous systems >25 kW and <5 MW Level 2: Expedited and supplemental review procedures. These systems must meet IEEE 1547 and UL 1741 standards.
Inverter-based or synchronous systems >5 MW and <20 MW that do not qualify for Level 1 or 2 Level 3: Full interconnection process.

System size limit: 20 MW

Liability insurance: itional liability insurance beyond proof of insurance is not required by utilities.

External disconnect switch: Not required

Third Party Ownership

Third party solar power purchase agreements are allowed in Ohio.

Community Solar

There are currently no statewide community solar policies or programs in Ohio. Utilities and developers may offer community solar projects.

State Incentive Programs

Program Administrator Incentive
Personal property taxes and real property tax exemptions Ohio Development Services Agency (DSA) and local county commissioners Commercial, IOUs, Municipal and cooperative utilities with qualified solar energy systems of <250 kW in Ohio are exempt from public utility tangible personal property taxes and real property taxes.

Qualified solar systems of >250 kW placed in service before Jan. 1, 2017 are exempt from property tax for the life of the facility provided they pay $7,000 per MW in lieu of taxes. Local county commissioners are allowed to require an additional payment as long as the overall payment does not exceed $9,000 per MW.
Energy Loan Fund Ohio Development Services Agency Commercial, Construction, Industrial, Local Government, Nonprofit, Schools, State Government, and Institutional entities with less than 500 employees can apply for low-cost financing for energy efficiency and renewable energy improvements.

The system must demonstrate minimum 15% reduction in energy use as a result of project. The typical loan limit is $1 million.

Utility Incentive Programs

Utility Incentive Limitations
First Energy SREC and REC purchase First Energy will periodically solicit proposals for RECs and SRECs First Energy will purchase 5,000 SRECs and 20,000 RECs in equal quantities each calendar year, from 2011 to 2020.

Resources

The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Renewable Portfolio Standard

Net metering and interconnection

Programs and incentives