Community Solar Programs in Ohio

Community solar programs allow households and businesses to purchase or subscribe to a share of a solar array located off-site, receiving credits on their utility bills without installing panels on their own property. This page covers how those programs are structured in Ohio, the regulatory framework governing them, the scenarios where they apply, and the boundaries that distinguish community solar from other solar arrangements. Understanding these distinctions is relevant for ratepayers, property owners, and organizations exploring solar access without the constraints of on-site installation.

Definition and scope

Community solar — sometimes called shared solar or solar gardens — refers to a model in which a single generating facility distributes its output across multiple subscribing customers. Rather than owning or leasing rooftop equipment, subscribers receive a proportional credit on their electricity bill corresponding to their share of the array's production.

In Ohio, community solar operates within a regulatory environment shaped by the Public Utilities Commission of Ohio (PUCO), which oversees retail electricity arrangements, interconnection standards, and utility billing practices. Ohio's community solar landscape is also framed by the state's Renewable Portfolio Standard (RPS), codified under Ohio Revised Code § 4928.64, which establishes minimum thresholds for renewable electricity sourcing by electric distribution utilities.

Ohio does not have a dedicated statewide community solar statute as of 2024, which distinguishes it from states such as Minnesota, which enacted its Community Solar Garden statute (Minn. Stat. § 216B.1641) and established a structured program with capacity caps and subscriber protections. In Ohio, community solar projects move forward primarily through voluntary utility programs, third-party developer arrangements, and PUCO-approved tariff structures.

Scope limitations: This page covers community solar arrangements governed by Ohio law and PUCO jurisdiction. Federal programs administered by the U.S. Department of Energy or the Federal Energy Regulatory Commission (FERC) are outside this page's scope, as are community solar programs in neighboring states. Off-grid cooperative arrangements that do not connect to a utility distribution system are also not covered here.

For a broader introduction to how solar energy systems function in the state, see How Ohio Solar Energy Systems Works: Conceptual Overview.

How it works

Community solar programs follow a structured flow from project development through subscriber billing:

1. Site selection and development: A developer or utility identifies a suitable location for a shared solar array — typically ground-mounted systems of 1 to 5 megawatts (MW) in capacity, though utility-scale configurations exist.
2. Interconnection application: The project applies for grid interconnection through the relevant electric distribution utility, subject to PUCO interconnection rules and, for larger systems, Federal Energy Regulatory Commission (FERC) jurisdiction under the Public Utility Regulatory Policies Act (PURPA).
3. Subscriber enrollment: Customers subscribe to a portion of the array's capacity, typically expressed in kilowatts (kW) or as a percentage of monthly electricity consumption. Subscription sizes commonly range from 1 kW to the equivalent of 100% of a subscriber's average monthly usage.
4. Energy production and allocation: The array generates electricity fed to the grid. The utility tracks each subscriber's proportional share using metering data.
5. Bill credits: Subscribers receive a bill credit — expressed in cents per kilowatt-hour (kWh) — for their allocated production. The credit rate structure varies by utility and tariff.
6. Renewable energy credit (REC) assignment: Depending on contract terms, Solar Renewable Energy Credits (SRECs) generated by the facility may be retained by the developer, assigned to the utility, or passed through to subscribers. Ohio's SREC market is referenced in more detail at Ohio Solar Renewable Energy Credits.

Permitting for community solar installations follows Ohio's standard electrical and building code requirements, including compliance with the National Electrical Code (NEC) as adopted by Ohio — currently based on NFPA 70, 2023 edition (effective 2023-01-01) — and inspection by the relevant local authority having jurisdiction (AHJ). Utility interconnection inspection requirements are set by each distribution utility's tariff and engineering standards.

Common scenarios

Renters and multi-family residents: Households in apartments or leased properties that cannot install rooftop panels are the primary demographic served by community solar. A subscriber in Columbus renting a two-bedroom apartment could subscribe to 3 kW of capacity at a community array in Franklin County, receiving monthly credits without any structural modification to the property.

Low-to-moderate income (LMI) households: Some community solar developers structure programs specifically for LMI subscribers, offering discounted subscription rates or bill credits that exceed the subscription cost. The U.S. Department of Energy's Solar Energy Technologies Office (SETO) has funded research into LMI community solar access barriers since 2016.

Small commercial and nonprofit entities: A small business or nonprofit organization with a leased or shared building — ineligible for rooftop installation — can subscribe to a community array share and apply credits against its commercial utility account. This intersects with considerations covered at Commercial Solar in Ohio.

Agricultural landowners hosting arrays: Ohio farmland owners have leased parcels to community solar developers, generating lease income while the array serves urban subscribers. This overlaps with topics addressed at Agricultural Solar in Ohio.

Decision boundaries

The table below illustrates the primary structural distinctions between community solar and the two most similar solar arrangements in Ohio:

The federal Investment Tax Credit (ITC), set at 30% under the Inflation Reduction Act of 2022 (Pub. L. 117-169, enacted August 16, 2022), applies to community solar arrays at the project level for the developer. Individual subscribers do not typically claim the ITC on their personal tax returns unless they hold a direct ownership interest in the array — a structural distinction with significant financial implications. For individual-level federal credit eligibility, see Federal Solar Tax Credit for Ohio Residents.

Ohio's net metering rules, governed by PUCO and Ohio Revised Code § 4928.67, apply to systems physically located on the subscriber's premises. Community solar subscribers receive bill credits through a different tariff mechanism — not net metering — because the generating system is remote. This distinction is detailed further at Net Metering in Ohio.

Projects below 20 kW in Ohio interconnect under simplified procedures. Projects between 20 kW and 2 MW follow a more detailed interconnection study process. Utility-scale community solar arrays above 2 MW may require FERC-level review. These thresholds shape project economics and development timelines significantly.

For the broader regulatory framework governing all solar arrangements in Ohio, the Regulatory Context for Ohio Solar Energy Systems page covers PUCO authority, applicable Ohio Revised Code provisions, and relevant federal overlays.

The Ohio Solar Authority home provides an entry point to all topic areas covered across this reference resource, including financing, permitting, utility interconnection, and system types.

References

• Public Utilities Commission of Ohio (PUCO)
• Ohio Revised Code § 4928.64 — Renewable Portfolio Standard
• Ohio Revised Code § 4928.67 — Net Metering
• U.S. Department of Energy — Solar Energy Technologies Office (SETO)
• IRS — Energy Credits (Investment Tax Credit)
• Inflation Reduction Act of 2022, Pub. L. 117-169 (enacted August 16, 2022) — An act to provide for reconciliation pursuant to title II of S. Con. Res. 14
• Federal Energy Regulatory Commission (FERC)
• Minnesota Community Solar Garden Statute, Minn. Stat. § 216B.1641
• National Electrical Code (NEC) — NFPA 70, 2023 Edition