INDIANAPOLIS — Solar panels are expensive to install, but the federal government currently offers tax credits for individuals, businesses, and nonprofits interested in making the investment. A bill moving through Congress may put these financial incentives in jeopardy.
"It's going to increase demand for things like gas and coal, and that's going to increase energy costs. It's also going to make it more expensive for people who want to put solar panels on their roof," Zach Schalk, the Indiana program director for Sun Action, said.
Schalk is referring to a spending and tax cut bill making its way through Congress that could eliminate the Residential Clean Energy Credit as a measure to reduce federal spending.
"Right now, the 25D residential solar tax credit is at 30% and will stay at 30% until at least 2032. This bill will end the tax credit much easier," Schalk said.
Without that credit, homeowners who have already added solar panels to their properties say it would be too expensive for others to make the same decision.
"Since we got it, the savings are amazing, and we were able because I'm getting that 30% back of what you pay," Anne Mills, a Greensburg solar homeowner, said.
Homeowners aren't the only ones impacted by the proposed changes. The bill would also eliminate the Clean Electricity Investment Tax Credit, which businesses and nonprofits are eligible to use.
"It's fair to say it would be very difficult for us to continue to make investment in solar without energy tax credits like these," said Joe Bowling, the executive director of the Englewood Community Development Corporation.
Bowling's organization helps low-income Hoosiers find affordable housing. They invested in solar panels at Oxford Place Senior Apartments to help lower utility costs.
"It just makes a very difficult situation nearly impossible, particularly for these residents," Bowling said.
According to Solar United Neighbors, Indiana ranked third in the nation for solar panel deployments in the first quarter of this year, only behind Florida and Texas. The industry also supports around 5,000 jobs across the state—jobs that could be at risk if this bill becomes law.
"Taking away that support too early is just going to cause the entire industry to collapse before it can stand on its own two feet," Schalk said.
Solar Action is urging individuals to contact Senators Todd Young and Jim Banks to advocate for the removal of this language from the bill. For more information, click here.
