Ohio Slams Door On Community Solar While Overhauling Energy Policy

After months of debate, Ohio has enacted House Bill 15, making sweeping changes to the state’s energy environment. The new law eliminates Electric Security Plans, which previously allowed utilities to bypass normal regulatory scrutiny when seeking approval for major projects and rate increases.

One of the most significant changes is the end of coal subsidies for the Ohio Valley Electric Corporation. Ohio residents will no longer foot the bill for these aging and costly coal plants through their utility bills. The law also prevents regulated utilities from building new power plants in the near term, a move designed to boost competition among private companies.

Despite these reforms, HB 15 continues Ohio’s ban on community solar projects. These arrangements, which allow groups of customers to share in the benefits of a single solar installation, remain prohibited statewide. The law also repeals the solar energy credit program and bars utilities from collecting monthly charges related to the Solar Generation Fund. Governor Mike DeWine signed the bill which will take full effect on August 14, 2025.

Ohio’s new energy law maintains barriers to community solar while eliminating both solar credits and related utility charges.

Grid modernization is a key focus of the new law. It requires utilities to evaluate grid-enhancing technologies when planning transmission projects. These technologies aim to optimize existing infrastructure rather than building entirely new lines. The assessment rate for new electric distribution infrastructure has been cut to 25%, which should encourage new development. The legislation passed with bipartisan support and received a unanimous vote in the Ohio Senate.

Consumers may see lower bills as a result of these changes. The elimination of ESPs closes loopholes that allowed unchecked rate increases, while ending coal subsidies removes an additional financial burden from customers. The prohibition on solar fund charges eliminates about $20 million in annual costs for retail electric customers. This comes as solar energy has become the fastest growing renewable source globally, offering increasingly cost-effective alternatives to traditional power generation.

The law represents a shift from government-mandated clean energy projects toward a market-driven approach. While some environmental provisions remain, they’re now focused on efficiency and reliability rather than specific mandates.

Environmental advocates note that more work is needed to strengthen clean energy provisions in Ohio’s energy policy framework.