Indiana governor passes anti-solar bill: death blow to the industry?

Facebook
Twitter
LinkedIn
Reddit
Email
The bill will curtail net metering, cut jobs and allegedly hand over more power to state investor-owned utilities. Source: thestatehousefile

The financial benefit currently available to solar users will be sharply curtailed over the next few years, after Indiana governor Eric Holcomb signed SEA 309 into law yesterday.

Ignoring pleas of the industry, who beseeched Holcomb to keep the current financial incentives for residential solar, the Republican elected not to veto the bill.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“I support solar as an important part of Indiana’s comprehensive energy mix.  I understand the concerns some have expressed, but this legislation ensures those who currently have interests in small solar operations will not be affected for decades,” he said of his decision.

The bill will now drastically reduce the rate of compensation for excess solar power over five years. It does allow anyone who installed a PV system after June but before 2022 to be grandfathered until 2032, but anyone after the 2022 cut-off point would only receive a lower financial rate for their power.

By 2046, solar users are likely to receive little more than the wholesale rate for their power – a difference of around US$0.08/kWh – as well as a US$0.25 premium.

Yesterday was the last day Holcomb 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. Solar advocates had lobbied aggressively against the bill. Earlier this week, Hoosiers petitioned the governor to veto the bill presenting him with 350 signatures in favour of a veto, and a coalition of Indiana tech CEOs had urged Holcomb to veto in the interest of solar’s economic benefits to the state.

Conversely, Indiana’s investor-owned utilities had lobbied for the measure during the legislative session; arguing that solar users are compensated too generously.

“We are quite pleased that the bill was signed into law,” said Mark Maassel, president of the Indiana Energy Association, which represents utilities. “No, this does not grant the utilities any kind of control of the solar market. No, it doesn't put the solar business out of business.”

Indiana’s solar industry was disappointed in the governor’s vote.

“SB 309 is counterproductive in our quest to retain and attract solar energy jobs, which are growing 12 times faster than the US private sector, in that it imposes five needless roadblocks to investment,” said Jesse Kharbanda, executive director for the Hoosier Environmental Council.

“Utilities absolutely understand there are benefits from putting solar on the grid, they just want to control it,” said Ryan Zaricki, president of residential installer Whole Sun Designs. “It's not an immediate death blow to our business, but next year is going to be much tougher.”

Ramifications

While the new law might not be “an immediate death blow” to residential solar businesses, it does make it much harder for solar to grow in the state. Currently only providing around 1% of the nation’s energy – the percentage is much less in Indiana.

According to the Indiana Distributed Energy Alliance, SEA 309 will have a knock-on effect to policy mechanisms used to promote solar energy, such as PPAs and virtual net metering. The bill also means net metering is prohibited under statutory law – meaning that even if utilities want to use net metering in future, they cannot under SEA 309. Furthermore, the bill allows utilities to increase rates on all customers in order to recover cost of credits due to net metering. This will affect low and middle income Hoosiers the most.

It also allows utilities to increase monthly service charge for solar customers to be connected to the grid, changing the rules for a small portion of their customers.

7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

September 5, 2025
US solar tracker manufacturer Nextracker has launched a new electrical balance of systems (eBOS) trunk connector.
September 5, 2025
During a week of major US clean energy developments, ContourGlobal, PSE, Arevon, and Ameren Missouri advanced solar projects across four states in the US.
September 5, 2025
Newly formed firm Solaris Assets has acquired the business operations and assets of Texas-based residential solar installer Sunnova.
September 5, 2025
US solar tracker manufacturer Array Technologies has announced that two of its tracking systems are compatible with 2,000V solar systems.
September 4, 2025
Gavin Newsom has signed an executive order to accelerate the permitting of energy generation projects that could be set to lose IRA support.
September 4, 2025
US polysilicon company Highland Materials has aimed to begin construction at its polysilicon plant in the second half of 2026.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines