New Ohio bill could hamstring big wind and solar farms even more

The Ohio Senate has passed a bill, SB294, that would make it harder for large wind and solar farms to get approved in the state, even as lawmakers on both sides agree Ohio needs more electricity supply. The bill would require any "reliable" energy source to hit a 50% capacity factor — a measure of how much power a source actually produces compared to its theoretical maximum. Solar farms in the U.S. averaged just 24.4% last year, so many projects would likely need to add battery storage to qualify, raising costs. Smaller projects — under 50 megawatts for solar and 5 megawatts for wind — would be exempt from this rule.

Supporters, including groups tied to the fossil fuel industry, say the bill favors "affordable, reliable" energy. Critics, including the Ohio Chamber of Commerce, solar industry groups, and the regional grid operator PJM, argue that capacity factor isn't a real measure of reliability, since the grid works because it combines many different power sources, not because any single one runs constantly. The bill has moved to the Ohio House, where it may be taken up after summer recess.

For homeowners, this bill doesn't directly change any rebate or upgrade program. But it could shape how much new wind and solar power gets built in Ohio in coming years, which affects the state's electricity supply and, potentially, future prices.