Commissioners hear update from auditor on $2.2M in solar PILOT collections

Highland County Auditor Alex Butler provided an overview of solar PILOTs, or payments in lieu of taxes, being collected this year during Highland County commissioners’ Wednesday, March 18 meeting.

According to figures shared by Butler, the county has collected a combined $2,250,000, which will be distributed among the county general fund, health department, Board of DD, local school districts, townships and fire districts.

“We are now at the point in time when solar PILOTs will start to be paid in,” Butler said, adding that their first payment collected in 2025 was “a small payment for just a few parcels.”

According to the Ohio Department of Development, “The Qualified Energy Project Tax Exemption provides owners (or lessees) of renewable energy projects with an exemption from the public utility tangible personal property tax.” Developers of all area solar projects have entered agreements to instead make the payments in lieu of taxes. Butler noted that for all of these projects, the cost for the PILOT is $9,000 per megawatt (the maximum amount allowable under state law), with the Department of Development “sending me notification of what the megawatt production is and how much is due. 

“The first $2,000 of that $9,000 megawatt fee is set aside directly to the county general fund,” Butler said. “The remaining $7,000 is distributed the same way property tax would have been, and that's part of the PILOT agreement that these companies have with the county.”

Starting in 2026, the New Market Solar I, New Market Solar II and Highland Solar projects have been determined “complete and operational” by ODOD and will be expected to make their payments twice a year on the same schedule as regular property tax payments. Butler said that the New Market developers have already paid in full for this year, while developers for the Highland Solar project made their first-half payment.

“Just like property tax, the PILOT is paid one year in arrears, so for example, these new projects that have made their payment this year became complete and operational in 2024,” Butler said. “We’re going off the tax lien date, just like property taxes, of January 1, 2025 that they were complete and operational at that time because they were approved by ODOD in 2024.

“I know a lot of members of the public have seen these panels in the field and been aware that they've been operational for some time, but the way that the state has this program set up, this is now the time that they're due, and I anticipate more to be coming online with a PILOT due over the next couple years.”

For the 2026 PILOTs, Butler said payments were made for New Market Solar I’s 35 megawatts (full year), New Market Solar II’s 65 megawatts (full year) and Highland Solar’s 300 megawatts (half year) for the aforementioned $2.2 million. 

That $2.2 million includes two parcels (one taxing district) for New Market Solar I, totaling 165.29 acres, with a grand total of $315,000 for the year; four parcels (two taxing districts) for New Market Solar II, totaling 346.95 acres, with a grand total of $585,000; and 19 parcels (three taxing districts) for Highland Solar, totaling 1,900.28 acres, with a first-half total of $1,350,000.

The breakdown of how that money is distributed, according to Butler, is: county general fund, $607,434.68; health department, $30,081.71; Board of DD, $186,936.35; Bright Local Schools, $294,923.42; Lynchburg-Clay Local Schools, $718,160.17; Southern Hills Career and Technical Center District, $73,443.96; Great Oaks Career Campuses, $85,045.28; Whiteoak Township, $20,051.85; Clay Township, $42,643.63; Paint Valley ADAMH, $42,973.87; Southern Highland Joint Fire District, $70,771.22; and Eastern Joint Fire and EMS District, $77,533.87. That is in line with the levies and millages from regular property tax payments, the auditor said.

Commissioner David Daniels asked if Butler could confirm that that the total amount collected is “never less than the nameplate capacity.”

“That’s true,” Butler said. “Let's say, for whatever reason that the project is producing less energy than expected, or less than the nameplate capacity. The county is guaranteed, per the PILOT agreement, to be compensated $9,000 per X megawatt, whatever is in the agreement.”

Daniels also asked if Butler had figures to show there is “actually more money being collected on these projects than would have normally been under, probably in most cases, CAUV [Current Agricultural Use Value]” or other property taxes.

“I could go ahead and say confidently that the revenue generated from the PILOT is more than what the property tax was,” Butler said. “Because the property is exempted from property taxation, they're making this $9,000 per megawatt payment because of that exemption, and their $9,000 per megawatt payment will far exceed what the property tax would have been. I can put some numbers together.”

Butler added that he could also share the final totals after the county receives their second-half payment.

In unrelated action, commissioners voted 3-0 to approve Butler’s recommendation to continue participation in the County Commissioners Association of Ohio’s workers’ compensation group rating pool, with an estimated annual savings of $20,175 on their premium of 2027.

In other discussion:

• Commission president Terry Britton said that commissioners and local emergency personnel are “going to revisit” a previously discussed proposal to implement automated external defibrillator (AED) devices for Highland County buildings.

Conversations with Cintas and Highland County EMA Director David Bushelman were initially held in the summer of 2024, with commissioners debating various factors, including the costs of purchasing versus renting the equipment. In June 2025, commissioners voted to put the matter “on hold,” pending ongoing construction projects. 

• Commissioners approved a request by ARPA funding coordinator Nicole Oberrecht to contract with UserWay to ensure the county website meets ADA [Americans with Disabilities Act] requirements. Oberrecht said this company was recommended by their web provider.

“There's a federal mandate that came out, and for county our size, our website will have to be compliant by April of ’27,” Oberrecht said. “They will provide that legal assurance.

“It’s like 500 bucks a year to partner with them, but they offer a free trial.”

Daniels asked Oberrecht if she knew how the current website “falls short” of the federal requirements.

“It has to meet all kinds of different thresholds,” she said. “It has to be able to enlarge the font. If you've got videos on your website, you have to have closed captioning or be able to read out loud to you. 

“[UserWay has] an attorney-led program that will make sure that we're in compliance because just like every other mandate, there's folks out there that are trying to catch the county that's deficient.”

• Commissioners voted 3-0 to “issue no comment” on an application for a new liquor license by the Rocky Road Sunoco.

Commissioners also made the following approvals, each by a 3-0 vote:

• A resolution to reduce the 2026 county budget in the amount of $408,419.60. A similar resolution was passed in January, as Butler said both resolutions involved making sure appropriations do not exceed the certificate of estimated resources.

• A resolution awarding the mezzanine railings bid for the Highland County Justice Center to J.R. Enterprises, with a base bid amount of $136,500. In a separate motion, commissioners voted to approve the notice of award to J.R. Enterprises.

• A resolution to grant authorization for the listed “then and now” purchase orders and authorizing the county
auditor to issue warrants for their payment.

• A request from the Board of DD for a transfer from 2100 Board of DD to 2195 Multi System Youth Incentive Fund in the amount of $50,000.

• A contract with Greystone Systems for phone and related services at the records storage building.

• A Command Cloud subscription agreement among commissioners, the sheriff’s office, Guardian RFID, Sourcewell Cooperative Purchasing. According to Highland County Sheriff Randy Sanders, this is an inmate security program where officers can record video if any “problems” arise.

“The biggest thing I see that it helps is frivolous lawsuits,” Sanders said. “This way, we’ve got a record that nobody can dispute.”

• A contract with Crane Pumps & Systems for Rocky Fork Lake grinder pump procurement in the amount of $323,500.

• A service activation form with phone service provider Host My Sip for the records storage building.

• A fund payment request from Mechanical Construction Co. for ongoing work at the Rocky Fork Lake Wastewater Treatment Plant.

• A proposal for field services with Geotechnical Consultants Inc. for special testing and inspection services for the new truck storage and office facility for the Highland County Engineer’s Office.

• An e-signature for a notice and claims administrator for a new proposed national opioid settlement (Six Remnant Defendants).

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