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Renewable Energy Certificates (RECs) for Ohio Businesses

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The short answer

A renewable energy certificate (REC) represents the environmental attributes of one megawatt-hour of renewable generation. Owning and retiring RECs is what lets a business claim it uses renewable electricity. You can get them bundled in a supply contract or aggregation program, or buy them unbundled and keep your current supply. In Ohio, certificates are tracked mainly in PJM-GATS. The state's renewable portfolio standard — the main source of compliance demand for Ohio-eligible RECs — is 8.5% in 2026 and ends after 2026, so from 2027 demand for them will come from voluntary buyers. Ohio's separate solar requirement ended in 2020, so there is no dedicated Ohio SREC market.

This page covers the certificates themselves. For all renewable options side by side, see the renewable options guide; for reporting rules and greenwashing risks, see green claims and Scope 2; for a decision framework between certificates and a long-term contract, see RECs vs renewable PPAs; and for simple green plans for small accounts, see renewable plans for small businesses.

What a REC is — and isn't

When a wind farm or solar array generates a megawatt-hour, two things exist: the electricity, which mixes with all other power on the grid, and the right to say that megawatt-hour came from a renewable source. The REC is the second part. A tracking system issues each REC a unique serial number, and it can be sold, transferred and finally retired — used up — on behalf of whoever makes the claim.

Three consequences for businesses:

  • No REC, no claim. Without retired certificates, a business can't claim renewable electricity, even if it has solar panels on the roof.
  • Selling means giving up the claim. If you sell the RECs from your own solar array, the buyer — not you — gets to say they used solar power.
  • A REC is not an offset. Carbon offsets represent emission reductions elsewhere; RECs represent renewable generation. They aren't interchangeable in Scope 2 reporting.

Bundled vs unbundled

Bundled Unbundled
How you get them Included in a renewable supply product, aggregation program or PPA Bought separately from a broker, supplier or project
Effect on your supply contract Part of it None — keep your current contract
Who can buy Customers who can choose a supplier or are in a renewable aggregation Anyone, including municipal and cooperative customers
Paperwork Supplier or program should provide a retirement statement You or your broker arrange retirement
Typical use Small and mid-size businesses wanting one bill Businesses mid-contract, multi-site portfolios, non-shopping territories

Tracking: PJM-GATS

PJM EIS, a PJM subsidiary, owns and operates the Generation Attribute Tracking System (GATS). It receives generation data from PJM and MISO and creates one certificate for every megawatt-hour of generation. It serves state renewable-standard programs in the region, including Ohio's, as well as utilities, brokers and companies buying certificates voluntarily.

When you buy RECs, ask for:

  • Retirement in your name (or on your behalf, with your name in the retirement record).
  • Serial numbers and a retirement report from the tracking system.
  • The generator details: facility, location, technology and vintage (the year of generation).

Certification: Green-e

Green-e Energy, run by the Center for Resource Solutions, is an independent certification for renewable electricity products and RECs. Certified products must come from eligible resources, from facilities built within the last 15 years, and must be verified so the same megawatt-hour isn't counted twice. It's a common quality requirement to write into an unbundled REC purchase.

Ohio's RPS and why 2026 matters

Under Ohio Revised Code 4928.64, as amended by House Bill 6 in 2019:

  • The renewable energy benchmark is 8.5% for 2026, with no requirement after 2026.
  • The separate solar requirement ended after 2019; from 2020 onward the solar benchmark is zero.
  • Qualifying resources must be located in Ohio or shown to be deliverable into Ohio.
  • HB 6 also exempted self-assessing purchasers — customers using at least 45 million kWh a year at a single location — from RPS charges.

What this means for buyers:

  • Standard supply loses its embedded renewable share after 2026. Suppliers no longer need to buy RECs for Ohio compliance for 2027 onward, so "standard" electricity will carry no state-required renewable content.
  • Voluntary buyers become the Ohio market. Demand for Ohio-sited certificates after the 2026 compliance year will depend on businesses and institutions buying them voluntarily, and on any other programs that accept them. We don't forecast REC prices, but expect the Ohio-specific premium to reflect that shift.
  • Old SREC advice is out of date. Pages promising Ohio solar owners steady SREC income describe a program that ended in 2020. Solar RECs from Ohio systems can still be sold into voluntary markets, and into other programs where eligible, but there is no Ohio solar-specific requirement creating demand.

What drives REC prices

Prices aren't published in one place, so get quotes. The main drivers:

  • Location. Certificates from the same grid (PJM) or the same state as your usage generally cost more than national certificates.
  • Technology. Solar certificates and project-specific certificates usually cost more than generic wind.
  • Vintage. Buyers increasingly want certificates from the same year as their usage.
  • Certification. Green-e-certified certificates can carry a premium.
  • Volume and term. Multi-year purchases may lock in pricing.

Compare quotes on the same specification, and ask how the broker or supplier is paid.

A buying checklist

  1. Quantity. Annual MWh × the percentage you want to cover.
  2. Vintage window. Same calendar year as your usage, or within a stated range.
  3. Geography. PJM, Ohio or national — decide based on the claim you want to make.
  4. Technology. Wind, solar or any eligible resource.
  5. Certification. Green-e or equivalent.
  6. Retirement. In your name, with serial numbers and a tracking-system report.
  7. Contract language. Quantity, specification, delivery date, price, fees and remedies if certificates aren't delivered.

FAQ

What is a renewable energy certificate?

A REC represents the environmental attributes of one megawatt-hour of renewable generation. Retiring it is what allows a business to claim that megawatt-hour of renewable electricity.

Does Ohio still have an SREC market?

No. Ohio's solar requirement ended after 2019, and the overall renewable standard ends after 2026. Ohio solar RECs can still be sold voluntarily, but there's no Ohio solar-specific compliance demand.

What happens to Ohio RECs after the RPS ends in 2026?

Compliance buying for Ohio ends with the 2026 requirement. After that, demand for Ohio-eligible certificates depends on voluntary buyers and any other programs that accept them.

Are unbundled RECs a legitimate way to claim renewable electricity?

Yes, under market-based Scope 2 accounting, provided the certificates meet quality criteria — ideally certified, from a matching vintage and grid — and are retired on your behalf.

Sources

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