Ohio business electricity FAQ
Direct answers to the questions Ohio business owners ask most, each linked to a deeper guide. Prices and rules change; figures below are current as of .
Shopping for business electricity in Ohio
Can my Ohio business choose its electricity supplier?
Yes, if your account is on one of Ohio's six investor-owned utilities: AEP Ohio, Duke Energy Ohio, AES Ohio, Ohio Edison, The Illuminating Company or Toledo Edison. You buy the generation part of your power from a PUCO-certified supplier while the utility keeps delivering it. Customers of municipal electric systems and electric cooperatives generally cannot switch.
What is the price to compare?
It is your utility's default generation price (the Standard Service Offer) — what you pay for generation if you never sign with a supplier. For small businesses on the GS rate from June 2026 to May 2027 it averages about 9.38¢/kWh at Ohio Edison, 9.45¢ at The Illuminating Company and 9.43¢ at Toledo Edison; Duke Energy Ohio's Rate DM first-block price is about 11.36¢. AEP Ohio and AES Ohio business figures depend on the rate schedule and are shown on your bill.
Does switching suppliers change who restores my power?
No. Your utility still owns the wires, reads the meter, restores outages and bills delivery charges. Only the generation price changes.
How long does it take to switch suppliers?
The switch takes effect on a regular meter-read date, typically one to two billing cycles after the supplier enrolls you. AEP Ohio needs the enrollment at least 12 days before your next read. Residential and small commercial customers can cancel within 7 days of the utility's confirmation letter.
Is shopping always cheaper than the utility's default price?
No. A supplier contract only helps if its all-in generation price, including capacity costs and any broker fee, beats the price to compare on your actual usage over the same term. Sometimes the default price is the better deal, especially right after it resets each June 1.
Why Ohio business electricity costs rose
Why did Ohio commercial electricity prices rise in 2025 and 2026?
Mostly because PJM capacity prices jumped from $28.92 per MW-day for June 2024–May 2025 to $269.92 for 2025/26 and $329.17 for 2026/27. EIA data show Ohio's average commercial price rose to about 13.78¢/kWh in the first half of 2026 from 11.07¢ a year earlier.
What is a capacity tag (PLC)?
Your capacity tag, or peak load contribution, is your share of the grid's summer peak, measured in kW. Suppliers and utilities multiply it by the PJM capacity price; at $329.17 per MW-day, each kW of tag costs about $120 a year. Cutting load during summer peak hours lowers next year's tag.
Will capacity prices come down soon?
Not before mid-2029 based on auctions already held: 2027/28 cleared at $333.44 and 2028/29 at $325.00 per MW-day, both at the price cap, with PJM short of its reliability requirement in both years.
What did Ohio House Bill 15 change for businesses?
HB 15, effective August 14, 2025, repealed electric security plans so default prices come from competitive bidding, ended the OVEC coal-plant charge, set a three-year utility rate-case cycle, let mercantile customers use their own or third-party generation behind the meter, and required renewal notices for small commercial accounts (25 kW or less) before a fixed price rolls to a variable one.
Is AEP Ohio changing its name?
Yes. AEP Ohio begins operating as Ohio Power Company on October 1, 2026, with a redesigned bill. The utility says rates, service, account numbers and supplier choice don't change.
Contracts, brokers and aggregation
How are energy brokers paid?
Most Ohio commercial brokers are paid by the supplier through an adder built into your cents-per-kWh price; some charge a flat fee instead. Either can be fair — ask for the compensation in ¢/kWh and total dollars, in writing, before you sign.
Do energy brokers need a license in Ohio?
Yes. Brokers and aggregators serving Ohio customers must be certified by the Public Utilities Commission of Ohio, and certificates must be renewed every two years. You can check a firm on PUCO's list of certified companies.
What is governmental aggregation, and was my business enrolled?
Many Ohio cities and townships buy power for residents and small businesses as a group. Accounts using 700,000 kWh a year or less that haven't chosen a supplier are enrolled automatically unless they opt out; accounts under a supplier contract are excluded. Your bill's generation section names your current supplier.
Should I choose a fixed or variable electricity price?
Most small and mid-size Ohio businesses choose a fixed price for budget certainty, especially with capacity prices at the cap through May 2029. Variable or index products can cost less on average but expose you to weather and gas-price spikes.
When should I start shopping before my contract ends?
Small accounts should start 60–90 days before expiration at the latest; larger or multi-site accounts should start six to twelve months ahead. Only accounts of 25 kW or less get statutory renewal notices, so track your own end date.
Incentives and taxes
Do Ohio utilities offer business energy-efficiency rebates?
Not in 2026. AEP Ohio, Duke Energy Ohio, AES Ohio and the FirstEnergy Ohio utilities do not currently run general business efficiency rebate programs. Financing such as C-PACE and equipment leasing, and federal tax provisions still in effect, are the main tools.
Is there sales tax on business electricity in Ohio?
No. Ohio doesn't charge sales tax on electricity. Bills include the kilowatt-hour excise tax, charged per kWh in declining monthly tiers.
Can my business still get federal tax credits for solar?
Only on a narrow timeline: under the 2025 federal law, commercial solar needed to begin construction by July 4, 2026 or be placed in service by December 31, 2027 to earn the clean-electricity credit. Battery storage keeps full credits for projects starting construction through 2033. Confirm with a tax adviser.