Ohio SRECs have fallen significantly in value due to an oversupply in the market. Since the renewable portfolio standard (RPS) freeze in 2014, prices have remained relatively low. Although attempts at an outright repeal have not been successful to date, the state legislature continues to attempt to dismantle the RPS year-over-year despite the fact that Ohio exercises among the most modest renewable portfolio standards in the country.
In addition to solar systems located in Ohio, owners of solar systems located in the states of Pennsylvania, West Virginia, Michigan, Indiana, and Kentucky are also eligible to sell SRECs in the Ohio market.
Ohio’s Alternative Energy Portfolio Standard
- Ohio’s renewable portfolio standard (RPS) requires that 12.5% of the state’s electricity be sourced from renewable energy by 2026, with a 0.5% carve-out specifically for solar energy.
- The solar alternative compliance payment (SACP), the penalty fee levied on compliance buyers who do not meet the state’s solar targets, is currently set at $250 per megawatt hour (1000 kWh) and will decrease by $50 every two years until 2026, at which point it will remain at $50. However, given the tremendous oversupply in the market, the SACP is not a driver of price, and utilities will likely never have the need to pay the SACP.
- SRECs up to five years old can be sold in the Ohio market.
- For more details on Ohio’s regulations, see the Public Utilities Commission (PUCO) website.
- Customers must submit a copy of the customer’s signed interconnection agreement, a signed contract, and photos of both the array and meter before we can register the system.
- Upon receipt of all documentation, Sol Systems will register a customer’s solar energy system with the Ohio Public Utilities Commission (PUCO) and the Generation Attribute Tracking System (GATS), the regulatory body that mints SRECs.
- Sol Systems does not charge a registration fee.
- The registration process with both the Ohio PUCO and GATS generally takes up to 4 months.
- In Ohio, SREC eligibility dates back to the solar energy system’s interconnection date, so long as the system is registered with the PUCO within that same month. Systems not registered within the same month will be eligible for SRECs from the first day of the month in which they are registered.
- For example, a solar energy system interconnected on January 1st, 2017 and registered on January 20th, 2017 will receive credit back to January 1st, 2017.
- Alternatively, a system interconnected on February 5th, 2017 but registered in March 2017 will be eligible back to March 1st, 2017.
- Only photovoltaic (PV) systems are eligible for SRECs in the Ohio market. Solar thermal systems and other renewable facilities are not eligible.
- Systems that are larger than 6 kW are required to have a dedicated revenue grade solar meter to report monthly generation data. If a solar system smaller than 6 kW does not have a revenue grade solar meter, its solar production will be reported on estimates by default.
- Please note that Sol Systems only works with customers whose installer has an existing relationship with our company. To find out if your installer works with Sol Systems, please contact your installation company.
Sol Systems makes payments to customers on a quarterly basis according to the following schedule.
|Generation Quarter||SREC Payment|
|Q1: January, February, and March||May|
|Q2: April, May, and June||August|
|Q3: July, August, and September||November|
|Q4: October, November, and December||February|
For example, on the last business day in May, Sol Systems will issue payments to customers whose energy production passes a 1000 kWh threshold in Quarter 1 (January-March) and their SREC has sold.
Sol Systems customers can receive their payment via paper check or direct deposit.