INDIANAPOLIS (AP) — Much of the financial incentive for installing solar panels would be eliminated in the coming years under a bill passed by the Indiana Senate.
Solar panel owners who feed surplus energy to the power grid are currently compensated at a retail market rate that helps pay off their investments.
Republican Sen. Brandt Hershman’s bill would drastically reduce that rate in five years, although it would grandfather in current solar panel owners for 30 years.
Hershman said concern over compensation rates will be moot as the cost and efficiency of the technology improves.
Solar energy accounts for less than 1 percent of Indiana’s power, but it could threaten power company profits if its popularity continues to grow.
The measure passed 39-9 Monday and now goes to the House.
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