Warning that it will have a chilling effect on renewable energy development in Ohio, the Solar Energy Industries Association (SEIA) is urging Gov. John Kasich to veto a bill that would freeze the state’s renewable energy and energy efficiency mandates. The bill, SB 310, passed the General Assembly on May 28 but has not yet reached the governor’s desk.
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Renewable Portfolio Standards (RPSs) are a policy tool enacted by many states to stimulate growth of the renewable energy industry. They require utilities to generate or purchase a certain amount of their electricity from renewable sources within a specified time frame. If a utility does not meet this goal, they are often subject to a penalty known as an Alternative Compliance Payment (ACP). Renewable Energy Credits (RECs) are tradable credits which represent the electricity generated from a renewable resource that utilities can purchase to meet their RPS goal. Solar Renewable Energy Credits (SRECs) are a form of RECS that represent electricity generated from a solar system. RECs are subject to market dynamics with the set ACP effectively functioning as a price floor. RPSs are different in every state.