INDIANAPOLIS (AP) - Indiana Gov. Eric Holcomb has signed a bill into law that will sharply curtail the benefit available to those who install solar panels.
Tuesday was the last day the Republican could veto or sign the bill, which critics contend is part of a broader nationwide push by utilities to seize control of the emerging solar market.
Holcomb says he understands those concerns, but signed the bill because the benefit will be phased out slowly.
Solar panel owners who feed surplus energy to the power grid are currently compensated at a retail rate that helps pay off their investments.
Indiana's investor-owned utility companies lobbied for the measure during the legislative session. They say solar panel owners who feed excess power to the grid are compensated too generously, a rate that will be drastically lowered under the measure.
PREVIOUS | Legislature approves bill curtailing solar panel incentives
Solar energy accounts for less than 1 percent of Indiana's power, but utilities worry it could someday cut into profits if its popularity continues to grow.
Critics say Indiana's approach is too Draconian and will muscle out smaller companies, like solar panel installers.
RELATED | Indianapolis airport solar farm expansion completed | IMS solar power facility open for business
