Solar Renewable Energy Credits (SRECs) (Ohio)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Solar Renewable Energy Credits (SRECs)|
|Incentive Type||Performance-Based Incentive|
|Applicable Sector||Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Municipal Utility, Rural Electric Cooperative, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||Varies based on market conditions|
|Installation Requirements||Must be located within the state of Ohio or shown to be deliverable to Ohio if out of state|
|Maximum Incentive|| SREC prices vary based on market conditions|
Solar Alternative Compliance Payments made when utilities lack sufficient SRECs are priced by legislation:
|Terms||Systems must be registered with Public Utilities Commission of Ohio|
|Program Administrator||Public Utilities Commision of Ohio|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
Solar Renewable Energy Certificates (SRECs) represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. The legislation creating Ohio's AEPS program, (S.B. 221), mandates the creation of SRECs and Solar Alternative Compliance Payments (SACPs) to meet the solar energy generation goal of .5% by 2026. To be in complaince with AEPS, Ohio retail electricity suppliers must either purchase or generate SRECs OR pay a Solar Alternative Compliance Payment (SACP) for any shortfalls in SREC purchases.
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).
SACP prices were set at $450/MWh by SB 221 in 2009 and were on schedule to drop by $50 every two years until a $50/MWh minimum was met in 2024. In 2014, SB 310 froze the SACP at $300/MWh for 2014, 2015, and 2016, and stipulated that after 2016, SACPs fall by $50 every two years to a minimum of $50/MWh by 2025. 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. Historically, utilities have generally been able into compliance without paying the ACP.
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.
|Contact Name||Stuart Siegfried|
|Department||Ohio Public Utilities Commission|
|Address||180 East Broad Street|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||ORC 4928.64 et seq.|
|Authority 2:||OAC 4901:1-40 et seq.|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.