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Renewable Electricity Options for Ohio Businesses Compared

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The short answer

An Ohio business has four ways to use renewable electricity: buy it (a renewable supply product or an aggregation program with renewable content), buy the certificates separately (unbundled RECs), make it on site (usually solar, net-metered for systems up to 120% of your usage), or contract for a project's output (a physical or virtual power purchase agreement). Community solar isn't available — the bill to create it passed the Ohio House in November 2025 and is still in a Senate committee. For most small and mid-size businesses, renewable supply or aggregation is simplest; on-site solar fits owners with a suitable roof or land and tax appetite, though federal credit deadlines tightened in 2026. Municipal and co-op customers can't choose a supplier but can buy RECs or install solar under their utility's rules.

Related guides go deeper on each piece: for small-business green plans and their price premium, see renewable plans for small businesses; for certificate types and the RPS ending, see RECs for Ohio businesses; for making defensible claims, see green claims and Scope 2; for solar payback modeling, see the commercial solar ROI analysis; for PPA structures, see corporate renewable PPAs; and for choosing between certificates and a PPA, see RECs vs renewable PPAs.

The options at a glance

Option Who can use it Upfront cost Commitment Renewable claim 2026 status
Renewable supply product Shopping customers of AEP Ohio, Duke, AES Ohio, Ohio Edison, CEI, Toledo Edison None Same as a standard supply contract Yes, if RECs are retired for you Widely available; compare with the price to compare
Aggregation with renewable content Eligible small accounts in participating communities None Program term Yes, with program documentation Examples: Clean Energy Columbus, Cincinnati
Unbundled RECs Any business, including municipal and co-op customers None One-time or multi-year purchase Yes Available; choose vintage, location and certification
On-site solar, owned Owners or long-term tenants with roof or land High Long-lived asset Yes, if you keep the RECs Net metering to 120% of usage; federal credit deadlines apply
On-site solar, third-party owned (PPA or lease) Sites with suitable roof or land Low or none Long-term contract Depends on who keeps the RECs HB 15 expressly allows it for mercantile customers
Off-site physical or virtual PPA Large loads, usually multi-site or industrial None Long-term contract Yes, with the project's RECs Specialized; mostly large buyers
Community solar — — — — Not law in Ohio (HB 303 pending in Senate)

Buying renewable supply

Renewable supply products. A certified supplier sells you generation with RECs attached — often 50% or 100% of usage — on the same terms as standard supply. Get standard and renewable prices the same day; the difference is the cost of the claim. The contract should state the percentage, certificate type and retirement on your behalf.

Aggregation programs. Many Ohio communities buy generation in bulk for residents and small businesses. Accounts using 700,000 kWh a year or less that aren't under a supplier contract are enrolled automatically unless they opt out; larger mercantile accounts can join only by opting in. Some programs are renewable:

  • Clean Energy Columbus — AEP Energy, 100% renewable, 10.01¢/kWh fixed for June 2026–May 2027, for eligible accounts on AEP Ohio (not Columbus Division of Power customers).
  • City of Cincinnati — Dynegy, 100% green product, 10.44¢/kWh for May–November 2026, under a contract running to May 2029; small commercial accounts under 700,000 kWh are eligible.

Aggregations must give at least 21 days to opt out and allow a free opt-out at least every three years. See governmental aggregation for businesses.

Why this matters more after 2026. Ohio's renewable portfolio standard requires 8.5% renewable energy in 2026 and nothing after. From 2027, standard supply carries no state-required renewable share, so any renewable claim has to come from a voluntary purchase.

Unbundled RECs

A REC represents the environmental attributes of one megawatt-hour of renewable generation. Buying RECs separately lets you keep your current supply contract — useful mid-contract, or on a municipal or cooperative system. Specify vintage, location, technology and certification, and require retirement in your name. See RECs for Ohio businesses.

On-site solar and net metering

Net metering. Under Ohio Administrative Code 4901:1-10-28, customers of the investor-owned utilities can net-meter systems sized up to 120% of their usage at interconnection. Excess generation becomes a monetary credit at the energy component of the utility's default (SSO) price — less than the full retail rate — that carries forward on future bills rather than being paid out, so systems are usually sized to be consumed on site. Municipal utilities and cooperatives set their own interconnection and net-metering rules.

Federal tax credit timing. Under P.L. 119-21, the clean-electricity credit for solar requires that construction began by July 4, 2026, or that the system is placed in service by December 31, 2027. A project starting construction now must therefore be in service by the end of 2027 to qualify. Projects that began construction after December 31, 2025, also face foreign-entity-of-concern sourcing restrictions. Confirm eligibility with a tax adviser before relying on the credit.

Behind-the-meter rules under HB 15. Since August 14, 2025, mercantile customers (more than 700,000 kWh a year) may connect their own or third-party-owned generation behind the meter, and utilities may not own new behind-the-meter generation. Smaller customers considering a third-party PPA or lease should confirm the structure with the installer and counsel.

Other funding. C-PACE financing is available through participating Ohio communities; USDA REAP guaranteed loans remain open to rural small businesses and agricultural producers, but new REAP grant applications have been paused since April 1, 2026. Ohio utilities offer no solar rebates.

Storage pairing. Batteries can store midday solar for use during late-afternoon peaks, and the federal storage credit continues at full value for projects beginning construction through 2033. See energy storage for Ohio businesses.

Power purchase agreements

A physical PPA delivers a project's power and RECs to you, usually through your supplier. A virtual PPA is a financial contract: you keep buying power normally, settle the difference between a fixed price and the project's market price, and receive the RECs. Both run many years and carry price, basis and accounting risks that suit larger, creditworthy buyers.

Community solar

Ohio has no community solar program. House Bill 303, which would create one, passed the House on November 19, 2025, and is in a Senate committee. Until it becomes law, ask exactly what any "Ohio community solar" offer is selling.

How to choose

  • You want a renewable claim with no capital: renewable supply product or aggregation.
  • You're locked into a supply contract, or on a municipal or co-op system: unbundled RECs.
  • You own the building, have a long horizon and can use tax benefits: on-site solar, possibly with storage.
  • You're a large or multi-site buyer with a long-term climate commitment: a PPA or VPPA, alongside the above.

FAQ

Can Ohio businesses join community solar?

Not yet. House Bill 303 would create a community energy program, but as of September 2026 it has passed only the Ohio House.

How does net metering work for an Ohio business?

Customers of Ohio's investor-owned utilities can net-meter systems sized up to 120% of their usage at interconnection; excess generation is credited at the energy component of the utility's default generation price.

Is the federal solar tax credit still available?

Only for projects that began construction by July 4, 2026, or are placed in service by December 31, 2027, subject to sourcing restrictions. Confirm with a tax adviser.

What's the easiest way for an Ohio business to go 100% renewable?

A 100% renewable supply product, or a renewable aggregation program if your community has one — with documentation that RECs are retired for your account.

Sources

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