Ohio recently joined seventeen other states and enacted property assessed clean energy (PACE) legislation. PACE laws allow property owners to borrow money through governmental loans or bonds to pay for energy improvements to their properties.

Ohio's PACE authority is contained in Ohio House Bill 1, enacted on July 17, 2009. HB 1 allows Ohio municipalities and townships to assist property owners in financing solar improvements benefiting their properties. By requesting a special assessment from a municipality or township and cooperating with the municipality or township, a property owner can finance solar photovoltaic and solar thermal systems, including roof-top and ground-mounted solar arrays and solar water heating systems. A special financing district called a "special improvement district" or "SID" must be created within each municipality or township to facilitate solar improvement financing.

Ohio Senate Bill 223 was introduced on January 12, 2010 and would expand Ohio's PACE legislation beyond solar to include wind, geothermal, biomass, gasification and energy efficiency technologies that "reduce energy consumption or support the production of clean, renewable energy . . . . " Either private or public entities can take advantage of an Energy SID program. As with Solar SIDs, participating municipalities or townships must pass legislation to establish an Energy SID and to determine what improvements qualify as "alternative energy technologies." In addition, SB 223 allows an Energy SID to pay for "consulting" and "energy auditing" as part of its planning for projects. SB 223 has been referred to the Senate Energy & Public Utilities Committee.

Resources Available

Ohio House Bill 1: Solar SIDs Changes to the Ohio Revised Code that authorize Solar SIDs and municipal and township financing of solar improvements

Ohio House Bill 1 Allows Municipal and Township Financing of Solar Energy Projects July 2009 Ohio House Bill 1, the biennium budget, allows Ohio municipalities and townships to assist property owners in financing solar photovoltaic and solar thermal systems, including roof-top and ground-mounted solar arrays and solar water heaters

Ohio Senate Bill 223: Expanding Energy SIDs Proposed changes to the Ohio Revised Code that authorize Energy SIDs to finance solar, wind, geothermal, biomass, gasification, and energy efficiency technologies; Introduced in the Ohio Senate on January 12, 2010

Solar SID Formation Process List of steps to be taken to create a Solar Special Improvement District

Summary of Ohio's PACE Financing Legislation Summary of Ohio's PACE Financing Legislation as authorized by HB 1 and proposed by SB 223

Ohio S.B. 221: A Summary of its Advanced Energy and Energy Efficiency Provisions September 2008 Bulletin on the energy provisions of Ohio Senate Bill 221, passed in April 2008

Alternative Energy Portfolio Standards Summary S.B. 221 implementation plan between now and 2025