Ohio state representatives reintroduced a bill to legalize community solar after the legislation’s previous versions were left to die in the Senate.
Republican Reps. Sharon Ray and Jim Hoops reintroduced a community energy bill less than two weeks after the Senate gutted their previous attempt in an overhaul of the state’s energy policy, which was signed into law by Gov. Mike DeWine.
The house bill introduced this week, HB 303, would add the community energy pilot program into the state’s energy policy, enabling people to subscribe to clean energy regardless of whether they are homeowners or rent, or able to put solar panels on their roof. Along with the pilot program, the bill would establish program evaluations and consumer protections ensuring community energy subscribers are effectively and equitably guaranteed savings through their participation.
The energy facility must generate renewable energy and have a nameplate capacity less than 11 MW, or less than 21 MW if it is on a distressed site or a commercial or public rooftop. The bill also mandates that the facility may not be under the control of an electric utility. AEP Ohio is the largest utility in the state.
With community solar, the consumer subscribes to a portion of the electricity generated by a local community solar installation, receiving credits on their utility bills for the electricity produced by the facility. Some programs reserve a portion for low- or moderate-income households.
At its heart, community solar empowers those who want a carbon-free future by giving them the choice to subscribe to renewable energy.
Similar legislation is also underway in Pennsylvania. The Pennsylvania bill would create a “community energy” program, allowing for other forms of clean energy. Both bills have Republican roots, and have made multiple attempts throughout recent years.
(Read: Why Pennsylvania’s efforts to legalize community solar might make a breakthrough)
After seven committee hearings spanning almost a year, SB 247 never made it out of committee. Across these hearings, about 70 groups and residents submitted testimony urging the senators to allow community solar in Ohio. The testimony’s opposition was limited to five companies, including AEP and its association, Edison Electric Institute, a promotor of “clean coal.” AEP has a long history of publishing misleading studies with companies financially tied to the coal industry about the cost of solar versus coal, according to the Energy and Policy Institute.
(See also: The electric utility anti-rooftop solar playbook)
AEP said last year Ohio doesn’t need community solar because the state’s utilities are already deregulated. In a statement, AEP said, “At a time when consumers have options to support renewable energy projects through Ohio’s deregulated energy marketplace, there is no reason to create a new program that would lead to customers paying more for something they are not benefiting from.”
However, for consumers who wish “to support renewable energy projects through Ohio’s deregulated energy market,” without community solar, their only option is to pick a different utility, as AEP generates among the lowest levels of solar energy compared to other Ohio utilities.
In 2024, just 0.27% of AEP’s nameplate generation capacity came from solar, and 8.32% came from renewable energy overall. AEP’s largest source of generation is coal at 43.56%, according to AEP’s sustainability report. For comparison, 3.16% of Ohio’s electricity is from solar, according to the Solar Energy Industries Association.
According to a 2023 economic analysis by The Ohio University, community solar would generate an estimated $5.6 billion in gross output and $409.5 million in local tax revenues for the state.
Read about other solar-related bills state lawmakers are debating this legislative session here.
