Community solar pilot program doesn’t make it into final Ohio energy bill

Update 05/15: Gov. Mike DeWine signed the bill into law.

The Ohio Senate unanimously passed an overhaul of the state’s energy policy via House Bill 15 on April 30, 2025, and the Ohio House later the same day concurred by a vote of 94 to 2. The legislation now heads to Gov. Mike DeWine for his approval.

An earlier version of the bill included a community energy pilot program that would have included solar, but that provision did not make it to the final legislation.

“We’re disappointed to see the Senate remove the community energy pilot from the final energy bill,” said Carlo Cavallaro, new markets director for the Coalition for Community Solar Access. “This program had strong support from Ohioans across the political spectrum and would have delivered real benefits — lower energy bills, increased customer choice and local economic investment. At a time when Ohio urgently needs more energy on the grid, not less, lawmakers passed up the fastest-to-scale, most adaptable solution we have. We remain committed to working with legislators, stakeholders, and communities to get this done. Ohioans deserve access to flexible, homegrown energy options that work for everyone.”

H.B. 15, along with its companion bill, Senate Bill 2, proposed wholesale changes to Ohio’s approach to energy. Below is a summary of some of the bill’s key provisions by law firm Bricker Graydon:

• Tax reform beginning in tax year 2027:
  • Decreases the Tangible Personal Property (TPP) tax on new generation and energy conversion equipment to 7% from 25%.
  • Drops the TPP on new transmission, distribution, and pipeline infrastructure to 25%.
  • Existing Payment in Lieu of Taxes (PILOT) agreements continue.
  • Energy storage will be treated as generation for purposes of the TPP.
• Priority Investment Areas (PIA)
  • Local communities can apply to the Department of Development to designate areas as a PIA. Brownfields and former mine sites are eligible for PIA designation.
  • PIA eligible projects can be awarded up to $10 million from the Brownfield Remediation Program.
  • PIA projects receive expedited review by the OPSB and a TPP tax exemption on transmission, distribution, and pipeline infrastructure for five years.
• Permits customer refunds for rates later determined to be illegal. Refunds are issued from the date the Ohio Supreme Court holds that a rate was illegal.
• Repeals coal subsidies to the Ohio Valley Electric Company (OVEC) immediately upon the bill becoming effective.
• Repeals the limited solar subsidies created by H.B. 6 in 2019. Redirects funds collected but not yet remitted to qualifying solar projects to a new fund called the School Energy Performance Contracting Loan Fund. This new fund, to be administered by the Ohio Facilities Construction Commission, provides loans to pay for energy conservation, measure installment contracts and energy-saving measure contracts. This includes installation of solar panels.
• Repeals Electric Security Plans and requires Electric Distribution Utilities (EDUs) to file rate cases every 3 years.
• PUCO “shot clocks” for rate cases.
  • Requires a 360-day time period for rate cases once an application has been filed.
  • Staff reports are required to be completed in 180 days.
  • Exempts new discovery after 215 days.
• The Ohio Power Siting Board is required to complete all cases within 150 days after an application is deemed complete.
• Expands the opportunities for behind-the-meter generation.
• Requires EDUs to publish capacity maps and heat maps of their systems.
• Contains definitions of “advanced transmission technologies,” “advanced conductor” and provisions designed to both study and promote the utilization of “grid-enhancing technologies,” otherwise known as GETs.

The Ohio Environmental Council (OEC) Action Fund praised the legislation in a statement by Nolan Rutschilling, managing director of energy policy:

“The OEC Action Fund, our members, and our partners have been fighting for years to eliminate the OVEC Coal Bailout created by the House Bill 6 corruption scandal, and to create more equitable, transparent regulation of electric utilities. Today, we earned a significant victory for clean air, utility accountability, and Ohioans concerned with rising electric bills. This legislation is imperfect, but it is an energy policy win for everyday Ohioans, not Fortune 500 utility companies and their CEOs,” Rutschilling said.

“This legislation will better allow the OEC Action Fund and our partners to continue our fight for a cleaner, more reliable, and affordable energy system, and it is the result of tireless work from Ohio’s environmental and energy justice advocates. We have much more work to do, but today, Ohio took a step towards a more equitable energy policy, and we applaud the Ohio legislature for this progress. We encourage Governor DeWine to sign this bill immediately,” he continued.

Updated on May 2