Solar Renewable Energy Credits

Incentive type: 
Renewable Energy
Technologies: 

Photovoltaics

Sectors: 
Tax Exempt
Amount: 

Varies based on market conditions.

Contact Information: 
Stuart Siegfried
Ohio Public Utilities Commission
180 East Broad Street
Columbus, OH 43215-3793

Phone: (614) 466-7536
Fax: (614) 466-8352
E-Mail: Stuart.Siegfried@puc.state.oh.us
Web Site: http://www.puc.state.oh.us

In May 2008, Ohio passed legislation (S.B. 221) containing a requirement that the four investor-owned utilities must provide 25% of their retail electricity supply from alternative energy sources by 2025. The requirement includes annual benchmarks for renewable and solar energy resources.  By 2025, 12.5 % must come from renewable sources, and 0.5% must come from solar.  At least half of the renewable and solar requirement must be generated in the state of Ohio, and the remainder must be located in adjoining states. 

Solar Renewable Energy Credits (SREC) represent the renewable attribute of solar generation.  One SREC is proof of 1 MWh of production, and each SREC has a lifetime of five years following their acquisition.  The utilities mandated to meet the benchmarks set forth in S.B. 221 must purchase solar generation or SRECs, or they must pay a Solar Alternative Compliance Payment (SACP).  The SACP has been set at $450/MWh in 2009, was reduced to $400/MWh for 2010 and 2011, and will be reduced by $50 every two years to a minimum of $50/MWh in 2024.