Ohio
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 07/21/2009
| Incentive Type: |
Property Tax Financing Authorization |
| State: |
Ohio |
| Eligible Renewable/Other Technologies: |
Solar Water Heat,
Solar Thermal Electric,
Solar Thermal Process Heat,
Photovoltaics
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Multi-Family Residential,
Low-Income Residential,
Agricultural
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| Financing Terms: | Low-interest, 25-year loan |
| Eligible Local Governments: | Municipal corporations, townships |
| Possible Revenue Sources: | Special obligation revenue bonds, state or federal grants |
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Authority 1:
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H.B. 1
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| Date Enacted: | 07/17/2009 |
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Summary:
"Property tax financing" allows property owners to borrow money to pay for energy improvements. The amount borrowed is repaid through an increased property tax assessment over a period of years. Legislation enacted in Ohio in July 2009 (HB 1) expanded the state's existing special improvement district law by authorizing local municipalities and townships to create special energy improvement districts that offer property owners financing to install photovoltaic (PV) or solar-thermal systems on real property. Contact your local government to find out if financing is available for solar energy through special property tax assessments.
Participating municipalities may issue bonds (either special or general obligation funds) and/or apply for state or federal money in order to fund such programs. Any property owner who opts in to the program and installs solar using municipal financing must agree to a special assessment on the property tax bill for up to 25 years in order to pay back the loan.
Municipalities and townships interested in creating such districts and providing financing for property owners must circulate a petition for eligible property owners to opt in to the program. Interested and eligible property owners must provide their solar -energy project plans as part of the petition, as it would serve as the request and basis for levying the special assessment on the participating owners' property. Once the petition is complete and property owners have opted in, the municipality must approve a special energy improvement district via ordinance or resolution. A special improvement district board of directors must be created (if one did not already exist) to implement the program. Each local municipality must determine specific eligibility criteria, the maximum loan amount and interest rates, and other loan terms. Unlike regular special improvement districts in Ohio, a special energy improvement district does not have to be comprised of contiguous properties.
The state law authorizing property tax financing in Ohio was inspired by grassroots efforts in Athens, which has announced plans to develop a program -- the Athens Solar Initiative -- to support solar-energy installations by property owners.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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