Trouble for Solar in Ohio

New legislation in Ohio is impeding the renewable energy market. Now there are no incentives for renewable energy to replace conventional or for companies to complete projects in-state. Prices for renewable energy credits (RECs) and solar renewable energy credits (SRECs) have already seen sharp decreases. The point of the new legislation is to review money usage and renewable energy benefits, but unfortunately this may set back Ohio from reaching its goals for years to come.

The Columbus Dispatchexplains that this is a two-year freeze with 2017 demands "ending a requirement that utilities purchase half of their renewable energy from within the state and expanding the types of projects that count as energy efficiency." Unfortunately this means that "Ohio is the first state of the 29 with renewable-energy standards to pass a reduction of the standards in both legislative chambers."

Greentechmedia reports that companies such as the Public Utilities Commission of Ohio have not yet implemented the changes yet, but analysts are already seeing market prices fall for renewable energy credits (RECs) and solar renewable energy credits (SRECs). "Utilities and other retail electricity suppliers can produce that electricity themselves, or they can buy" RECs or SRECs which represent "one megawatt-hour (MWh) of electricity produced" and can be traded. Senate Bill 310 has made trading of these credits unnecessary.

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Solar projects have also halted and the state's solar industry growth slowed. It would seem that high costs were what spurred this bill into formation. Greentechmedia says the law now mandates that a committee will spend time considering "the full extent to which customer savings, economic development benefits, and other factors offset any costs." But without activity in the market, it is likely that the information the committee receives will be skewed and not be representative of the real benefits over conventional coal power. President of Melink Corporation explains that dirty power is not cheaper than clean due to increased infrastructure and healthcare costs, impacts from climate change and the U.S. EPA's carbon rules and goals.

Funding renewable energy projects in Ohio is now near impossible after "SB310 and increasing opportunities in neighboring states," reports UtilityDive. There is hope that municipalities and utility customers will demand renewables when prices for energy from conventional sources soon become expensive.

PVSolarReport says many people are angered over the bill, but are hopeful that the two years will lead improvements to the original Ohio renewable energy bill. People of Ohio who don't like lagging behind in future renewable energy project completion will need to speak up and get involved if solar will continue to shine in Ohio.