The state's general assembly and senate approved the law that will pause the standard for two years, falling short of the complete repeal called for by Republican legislators.
Ohio's existing standard, signed into law in 2008, require utilities to use alternative energy for 25% of their power by 2025. Suppliers also have to bring in measures to cut customer power usage by 22%.
The freeze means that the move from the current 2.5% to 25% of power from renewable sources will now only need to be hit by 2027 if the suspension is not extended.
Advocates of the original bill say that the hiatus will put hundreds of jobs in the wind and solar industries at risk as utilities scale down their renewables investment.
Industry groups had put forward a compromise bill that would have seen a one-year suspension of the standard, but this was dismissed by the republican-led House Public Utilities Committee.
Supporters of the freeze said it was necessary in order to bring down utility bills, but a poll of residents by lobbying group Ohio Advanced Energy Economy showed that the majority of Ohioans support the renewable energy standard.