Hannah Kasak-Gliboff, Solarize Indiana Coordinator
Two weeks into the new year, self-avowed lifestyle changes may already be in decline. But whatever has become of your original new year’s resolutions, it’s not too late for 2022 to be the year you finally “go solar”!
If producing your own renewable energy has ever featured in your day dreams, this piece is for you. For Hoosiers around the state, the cost of installing solar panels is about to spike after June 2022 thanks to Senate Enrolled Act 309’s phasing out of net-metering. If your energy is supplied by an investor-owned utility (Duke Energy, Indiana-Michigan Power, Indianapolis Power and Light Company, Northern Indiana Public Service Company (NIPSCO), and CenterPoint Energy (formerly Vectren)), this policy change affects you.
Current policy entitles all solar owners served by investor-owned utilities to a billing system called net-metering, in which the energy produced by the solar array and sent to the grid is valued at the same rate as the energy drawn from the grid. That means solar owners, who naturally only produce energy during the day, can swap out their energy during the day for energy at night at a 1:1 ratio and are only billed for energy usage that exceeds what they contributed to the grid over the monthly billing period.
With the passage of SEA 309, this is changing. For solar installations after the end of June 2022, net-metering no longer applies, meaning that any energy contributed to the grid is valued at only a fraction of the cost of the energy drawn from the grid. Solarize Indiana estimates that the loss of net-metering in the manner approved by the IURC will cost solar owners on average an estimated $11,000 in lost savings over 25 years.
The silver lining? There’s still time. Solar systems installed and connected to the grid before the end of June 2022 qualify for 10 years of net-metering. Though after 2032 these systems will be subject to the same disadvantageous rate others will see beginning in July 2022, 10 years of net-metering brings most homeowners very close to break even on their investment. The average solar installation pays for itself in 8-12 years under net-metering, so those who install before the June deadline can still expect a small return on their investment over the life of their system in addition to reducing their environmental footprint.
The nexts steps are simple:
First, homeowners, brick-and-mortar businesses, non-profits, schools and congregations can learn more about how to get started on their solar journey by signing up for the online Go-Solar Workshop on February 16th at 7pm, organized by Solarize Indiana. As the deadline to qualify for net-metering approaches, this is a workshop you won’t want to miss. Participants will hear from experienced solar-owner and Solarize Indiana board member Barry Kastner about the factors to consider in installing solar, and those interested in continuing to the next step will be connected with a competitively vetted installer in their area.
Second, everyone should contact their state legislators to ask them to support Rep. Tony Cook’s HB 1136 which will extend net metering for three more years so that even more people can “go solar” and save money on their electric bills while reducing the impact their energy use has on everyone’s Planet Earth!
For any questions, comments, and concerns, please email coordinator@solarizeindiana.org and we’ll be in touch!
Photo courtesy of Solar Energy Systems LLC.