Renewable PPAs for Mid-Size Ohio Businesses

Ohio market insight · Renewables & solar

Updated September 27, 2026Ohio Commercial Energy editorial teamHow we review content Book a free 15-min bill review

The short answer

A classic corporate power purchase agreement, a 10-to-20-year contract for the output of a utility-scale wind or solar farm, is built for buyers with very large loads and investment-grade credit. Mid-size Ohio businesses can still get project-linked renewable power through three accessible routes: joining an aggregated or consortium virtual PPA, buying renewable retail supply from a competitive supplier or community aggregation program, or hosting an on-site system under a third-party PPA or lease. Which one fits depends on your load, credit, contract horizon and whether you need a price hedge or just a credible renewable claim.

Why the big-company PPA model rarely fits

In a virtual PPA (VPPA), the buyer agrees to a fixed "strike" price for a project's output. The project sells its power into the PJM wholesale market; if the market price is below the strike, the buyer pays the difference, and if above, the project pays the buyer. The buyer receives the project's renewable energy certificates (RECs) and keeps buying physical power from its normal supplier.

That structure creates hurdles a mid-size company feels immediately:

Scale. Developers size contracts to a project's financing needs, so a single-buyer VPPA usually covers far more energy than a mid-size company uses.
Credit. Developers and their lenders want a creditworthy offtaker for the full term, often backed by collateral or a parent guarantee.
Term. Ten to twenty years outlasts many leases, loans and ownership horizons.
Accounting. A VPPA's settlement feature can require derivative accounting; involve your auditor before signing.
Complexity. Negotiating settlement terms, basis, curtailment and change-in-law provisions takes specialist counsel.

Four structures a mid-size buyer can actually use

Structure	How it works	Rough scale needed	What you get
Aggregated or consortium VPPA	Several buyers each take a share of one project's VPPA under common terms	Well below a single-buyer deal, but still large, multi-year commitments suited to multi-site or energy-intensive companies	Project-specific RECs and a long-term financial hedge
Renewable retail supply from a supplier	A competitive (CRES) supplier bundles supply with RECs, sometimes sourced from a named project or a supplier-held PPA	Any size that can shop	Fixed retail price plus a renewable claim; no separate settlement
Community aggregation with a renewable product	Your city or township buys 100% renewable supply for eligible accounts	Generally accounts under 700,000 kWh/yr; mercantile accounts must opt in	Simple renewable supply at a program price
On-site third-party PPA or lease	An investor owns a system on your roof or land and sells you the output, or leases you the equipment	A site with suitable roof or land and steady daytime load	Local generation with no upfront capital

Two Ohio aggregation programs show what the third row looks like: Clean Energy Columbus buys 100% renewable supply from AEP Energy at a fixed 10.01¢/kWh for June 2026–May 2027 (for AEP Ohio accounts, not Columbus Division of Power customers), and Cincinnati's program buys 100% green supply from Dynegy at 10.44¢/kWh for May–November 2026 with small commercial accounts under 700,000 kWh eligible. See governmental aggregation for businesses for how opt-in and opt-out work.

What changed in 2025–2026

HB 15 (effective August 14, 2025) lets mercantile customers (over 700,000 kWh a year) host "self-power" generation behind the meter that can be owned or operated by a third party, located on or adjacent to the customer's property, and serve one or a group of large customers without the owner being regulated as a utility. That gives on-site PPAs for mercantile sites clear statutory footing. See the HB 15 business guide.
Federal credits for new wind and solar are ending. Projects must have begun construction by July 4, 2026, or be in service by December 31, 2027, to qualify. Developers price that into strike prices for new projects, so expect fewer bargains from projects that missed the window.
Ohio's renewable portfolio standard requires 8.5% for 2026 and nothing after 2026, which removes a source of in-state compliance demand for RECs.

Risks to price before you sign

Basis risk. VPPA settlement uses the project's node or hub price, while your bill reflects prices in your utility zone. When the two diverge, your hedge underperforms.
Shape risk. A project's output is concentrated in certain hours (midday for solar). If prices in those hours weaken relative to the rest of the day, the VPPA settles against you in exactly the hours it produces most.
Volume risk. In a fixed-volume deal, you owe settlement on energy you may no longer use if a plant closes or shrinks.
Counterparty risk. Both sides post credit support for years. Check the developer's financing and the project's stage; pre-construction projects can be delayed or cancelled.
Change-in-law and curtailment. Who bears the cost if PJM rules change or the project is told to curtail?
REC quality. Confirm the RECs are retired in your name in PJM-GATS and match the vintage and market boundary your reporting framework requires.
On-site specifics. For third-party on-site deals, review roof warranties, removal obligations at term end, buyout pricing, escalators and what happens if you sell the building.

A decision path by load size

Under 700,000 kWh a year (non-mercantile): A renewable retail product from a supplier or your community's aggregation program is usually the practical choice. On-site solar is typically owned or leased rather than bought under a third-party PPA; have counsel review any structure where a third party sells you power.
Mercantile single site (roughly 0.7 to several million kWh): Compare a fixed-price renewable supply contract with an on-site third-party PPA under HB 15. Aggregated VPPAs become worth a look if you need a long-term hedge or project-specific claims.
Multi-site or energy-intensive portfolios: Aggregated VPPAs, supplier-sleeved project supply and on-site systems can be layered; set a written policy for hedge ratios and credit limits first.

For whether you need a PPA at all versus certificates, see RECs vs. renewable PPAs; for on-site project payback, see the commercial solar ROI model; for every option in one place, see the renewable energy options guide; and for simple 100%-renewable supply products and their premiums, see renewable options for small businesses.

FAQ

What is the difference between a physical and a virtual PPA?

A physical PPA delivers the project's power to your load, usually through a supplier. A virtual PPA is a financial contract that settles the difference between a fixed strike price and the market price while you keep buying power normally; both typically include the project's RECs.

Can a mid-size Ohio company join a PPA without committing to a whole project?

Yes, through aggregated or consortium deals where several buyers share one project's output under common terms. Commitments are still multi-year and require credit support, so they suit companies with stable, sizable loads.

Does HB 15 allow third-party-owned solar at a business?

For mercantile customers, yes. HB 15 lets a third party own or operate behind-the-meter generation serving a large customer or group of large customers without being regulated as a utility.

Is a renewable retail supply contract a PPA?

Not in the project-finance sense. It is a retail supply contract with RECs attached; some suppliers back these products with their own PPAs, but you do not take on settlement or project risk.