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Solar Renewable Energy Credits (SRECs)

Eligibility 
Agricultural
Commercial
Industrial
Institutional
Local Government
Low-Income Residential
Multi-Family Residential
Municipal Utility
Nonprofit
Residential
Rural Electric Cooperative
Schools
State Government
Savings Category 
Photovoltaics
Maximum Rebate 

Varies based on market conditions. Solar Alternative Compliance Payments for each year are:
2009: $450/MWh
2010 and 2011: $400/MWh
2012 and 2013: $350/MWh
2014 and 2015: $300/MWh
2016 and 2017: $250/MWh
2018 and 2019: $200/MWh
2020 and 2021: $150/MWh
2022 and 2023: $100/MWh
2024 and beyond: $50

Program Info
Start Date 

2009

State 
Ohio
Program Type 
Performance-Based Incentive
Rebate Amount 

Varies based on market conditions

Provider 
Ohio Public Utilities Commission

In May 2008, Ohio enacted broad electric industry restructuring legislation (S.B. 221) containing advanced energy and renewable energy generation and procurement requirements for the state's electric distribution utilities and electric service companies (hereafter referred to as ''utilities''). This definition encompasses all retail electricity providers '''except''' municipal utilities and electric cooperatives.

Under the standard, utilities must provide 25% of their retail electricity supply from alternative energy resources by 2025, with specific annual benchmarks for renewable and solar energy resources. The renewable benchmarks began in 2009 and increase annually towards an eventual target of 12.5% of retail electricity sales by year-end in 2024 and thereafter. The requirement also contains a carve-out for solar-energy resources with an ultimate solar target of 0.5% of the total electricity supply in 2024 and thereafter. The total renewable percentage requirement ''includes'' the solar specific portion (i.e., the solar requirement is not added on top of the specified renewables requirement). At least half of the renewable requirement, including solar, must be located within the state of Ohio and the other half must be located in adjoining states where it can be shown that the electricity could be delivered to Ohio.

Solar Renewable Energy Certificates (SRECs) represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. Under the standard, SRECs have a lifetime of five years following their initial acquisition. Generators must register with the Public Utilities Commission of Ohio (PUCO) to become a certified facility, eligible to generate SRECs for compliance under Ohio's Alternative Energy Resource Standard (AERS). Once PUCO certification is received, the generator must also register with an attribute tracking system (such as PJM-GATS or M-RETS).

Ohio retail electricity suppliers must purchase or generate SRECs in order to meet their compliance obligations under AERS, or pay a Solar Alternative Compliance Payment (SACP) for any shortfalls in SREC purchases. The Ohio legislature set the SACP at $450/MWh in 2009. The SACP is effectively a ceiling on the value of SRECs because it is the per MWh payment that electricity suppliers must make if they fail to obtain enough SRECs to cover their RPS obligation. It has been reduced to $400/MWh in 2010 and 2011, and will be reduced by $50 every two years thereafter to a minimum of $50/MWh in 2024. Compliance payments will be deposited into the Ohio Advanced Energy Fund, which provides financial support to renewable energy and energy efficiency projects within the state. Utilities may not pass along the cost of compliance payments to their customers. PUCO may grant a force majeure determination, thereby relieving the utilities of their obligation to pay SACP, if utilities are able to prove they were unable to procure enough SRECs to satisfy the requirements due to conditions beyond their control. In 2010, PUCO granted force majeure for all four retail electric companies in Ohio (Duke Energy Ohio, Dayton Power and Light, American Electric Power (AEP) and FirstEnergy), as none of them were able to meet the 2009 Solar Carve out requirements.

Interested system owners must reserve a case number on the web site above. For applications received after December 31, 2012, credit will only be given for generation that occurrred after the facility's application date.