Renewable Energy Permitting in Ohio
Ohio offers a competitive retail electricity market, net metering through multiple utilities, and access to REC markets. Community solar legislation is pending with a proposed 1,500 MW program.
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Key Permitting Highlights in Ohio
Competitive retail electricity market
Net metering at energy rate (~$0.07-0.11/kWh)
Access to Ohio and PA REC markets (~$40/MWh)
120% consumption-based system sizing
Overview
Ohio operates a competitive retail electricity market where customers can choose from Competitive Retail Electric Service (CRES) providers certified by the Public Utilities Commission. Net metering is available through FirstEnergy subsidiaries (Ohio Edison, Toledo Edison, Illuminating Company), Duke Energy Ohio, AES Ohio, and AEP Ohio. Projects can sell RECs into Ohio or Pennsylvania Tier I markets at approximately $40/MWh.
Permitting Guide
Common Challenges & Landmines
Local moratoria + ordinance churn (solar setbacks, BESS bans, decommissioning bonds) are usually the #1 surprise cost. Stormwater + erosion compliance (CGP/SWPPP) enforcement risk + stop-work exposure. Wetlands/401/404 + floodplain can be route/site killers—plan alternatives early. BESS fire code adoption + AHJ posture: IFC/NFPA 855/UL 9540A documentation expectations vary by locality.
Tax Considerations
Property tax is commonly local and negotiable; incentives are often deal-specific.
Data Center Considerations
Incentives vary widely and often include sales/use exemptions and sometimes property tax relief.
Net Metering Programs
Net metering credits are applied at the energy (volumetric) charge rate, approximately $0.07-0.11/kWh depending on utility and customer class. Systems can be sized up to 120% of annual consumption. Eligible technologies include solar, wind, biomass, landfill gas, hydropower, microturbines, and fuel cells. Equipment must primarily offset the customer's electricity requirements.
Interconnection & Utilities
FirstEnergy charges Level 1 fees of $50, Level 2 at $50 plus $1/kW, and Level 3 at $100 plus $2/kW. AEP Ohio requires a $300 pre-application fee with similar tiered interconnection fees. AEP's timeline averages 35 days from application to interconnection agreement. Duke Energy and AES Ohio offer comparable programs with utility-specific processes.
REC Markets
Ohio projects can sell into the state REC market or the Pennsylvania Tier I REC market (not the PA SREC market). Prices are approximately $40/MWh. This provides additional revenue beyond net metering for solar installations across the state.
Frequently Asked Questions
How does retail choice work in Ohio?
Ohio customers can shop for electricity supply from CRES providers certified by PUCO. Utilities like Ohio Edison and AEP Ohio remain regulated for distribution, while CRES providers and municipal aggregation programs are unregulated. Time-of-use pricing is available through regulated utility programs.
What is the status of community solar in Ohio?
Community solar legislation (HB 197 and SB 247) has been introduced proposing a 1,500 MW pilot program. If passed, projects would be capped at 10 MW (20 MW on distressed sites) with 60% of capacity reserved for subscriptions of 40 kW or less.
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