Energy

The Effect of Senate Bill 309 on Indiana’s Solar Market

Renewable Energy World: Indiana is not a leader in solar energy, however the state has been making significant strides towards energy independence over recent years. The recent passage of Senate Bill 309 may halt any real progression from taking place in the residential solar sector.

For those who are unfamiliar, SB 309 significantly reduces state solar incentives and creates an exclusive rate glass for solar users. The bill received opposition from the Indiana Distributed Energy Alliance, which claimed that the bill was wrongfully represented and influenced committee voting.

Although the bill was amended to not include its initial requirement that solar consumers sell energy at a wholesale rate to the utility company then purchase it back at a higher retail rate; the lack of financial incentive may have a negative effect on residential solar installations. In addition to the lack of financial incentive, Indiana does not have as many peak sun hours as many states where solar is popular such as California. The limited peak sun hours and low net metering monetary gain increases the length of time before homeowners will see a positive return on investment on their systems. Although residents can still take full advantage of federal financial incentives, they are unlikely to see an ROI that will merit the cost of their solar systems.

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