Author: hoosiers for community energy

Indiana received welcome news on Earth Day this year that our state will soon receive more than $100 million in federal funding to help bring solar energy to low- and middle-income Hoosiers.

This recent editorial in the Columbus Republic sums up why this funding is so important for the future of our state:

Solar power has been a growing part of our energy mix in recent years because economically, it makes long-term sense and it’s environmentally sustainable. But because the upfront installation costs are high, solar has been out of reach for most households and cost-prohibitive for low-income households.

But this grant, and the shovel-ready projects that local stakeholders have designed for Columbus, show that it doesn’t have to be that way.

A few hundred low-income households in Columbus will get solar power as a result of this grant. But from an economic and sustainability standpoint, everyone in the city will benefit.

Columbus Republic, May 2024, “Editorial: Grant will energize an array of solar in Columbus”

The Indiana coalition was awarded funding for a solar energy program that is part of a national effort to ensure low-income families have access to solar energy. This program will benefit low-income families by reducing their energy bills and improving air quality. Community solar installations will also create local jobs as they are being built.

Unfortunately, right now independent community solar developments are not allowed under Indiana law.

In order to maximize the benefits of solar energy in Indiana, lawmakers can use this moment to change the law to allow independent community solar development across the state so Hoosiers who cannot install solar panels on their own roof can benefit from the clean energy and cost savings of solar.

By allowing independent community solar development, Indiana can create more jobs, improve air quality and help more Hoosiers save money on their electric bills.

The White House and the EPA made a big splash on Earth Day with their announcement of $7 billion in funding to make sure solar energy is available to low-income families.

The Solar for All funding is the jump-start we need to ensure equitable access to solar energy and to get the transition to clean energy moving quicker.

Solar for All is ​“unprecedented,” said Warren Leon, executive director of the Clean Energy States Alliance. ​“There’s never been an initiative anywhere near as big for expanding solar for the benefit of low- and moderate-income households across the country. This is going to give a tremendous boost to an important share of the solar market that has not received sufficient attention in the past.”

The 60 selected programs, administered by state agencies, municipalities, tribal governments, and nonprofits, will use grants and low-cost financing to develop community solar, rooftop solar, and battery storage for individual homes and multifamily affordable buildings.

In some cases, the Solar for All grants will help grow existing programs, including large ones in California and New York, Leon said. But for 25 states and territories, this will be the first time they’re getting low-income solar programs, he noted. Among the newcomers — most of them Republican-leaning states — are Arkansas, Arizona, Idaho, Missouri, Nebraska, North Dakota, and South Dakota.

Canary Media, April 2024, “Solar is about to get a lot more affordable for low-income households”

Indiana is one of those states—and this funding could be a game-changer, both for traditional solar installations as well as independent community solar if the state’s laws are redesigned to allow for it.

Traditionally, upfront costs have been a barrier for many Hoosiers to consider solar panels for their homes. This funding will help address that by creating new incentives, such as rebates or tax breaks, that can significantly reduce the financial burden.

With a community solar law in place that allows independent, local projects to move forward, solar could truly become a reality for tens of thousands more Hoosiers. Community solar projects allow renters, those in multi-family homes and others who cannot put solar on their rooftops to benefit from solar energy by subscribing to a community solar farm and receiving credits on their electricity bills.

Overall, this federal funding is a huge step forward in making solar energy a viable option for more Indiana residents. It will lower energy costs for low-income families, create jobs in the solar industry and move the state closer to its clean energy goals.

Big news for solar energy and community solar in Indiana: Today, the U.S. Environmental Protection Agency announced 60 grantees that will receive $7 billion in awards through the Solar for All grant competition to deliver residential solar projects to over 900,000 households nationwide. The grant competition is funded by the Inflation Reduction Act, which created EPA’s $27 billion Greenhouse Gas Reduction Fund.

An application from the Indiana Community Action Association, Inc. (IN-CAA) was selected to receive more than $117 million in funding.

“SFA Indiana (SFAI) is a coalition of municipal governments and community entities in Fort Wayne, Gary, Indianapolis, and Columbus, combined with six statewide organizations. The coalition will collectively solarize low-income homes while transforming the market in Indiana by creating new financial products and incentives that jumpstart solar for low-income residents, new affordable housing developments, and more. In dialogue with utility companies, and in tandem with school-to-work industry development efforts, the coalition is committed to leading toward solar in Indiana from the grassroots upward.”

From the EPA press release:

“Solar is the cheapest form of electricity—and one of the best ways to lower energy costs for American families,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Today’s announcement of EPA’s Solar for All awards will mean that low-income communities, and not just well-off communities, will feel the cost-saving benefits of solar thanks to this investment.”

“Residential solar electricity leads to reduced monthly utility bills, reduced levels of air pollution in neighborhoods, and ultimately healthier communities, but too often low-income and disadvantaged communities have been left out. Today’s announcement will invest billions to ensure that affordable housing across the U.S. can access solar and increase energy efficiency and climate resilience,” said U.S. Department of Housing and Urban Development (HUD) Acting Secretary Adrianne Todman. “HUD is honored to have played a key role in today’s monumental announcement, which will provide meaningful household savings to households in low-income and disadvantaged communities, reduce both greenhouse gas emissions and energy costs, and deliver electricity during grid outages for low-income households.”

U.S. Environmental Protection Agency, April 2024, “Biden-Harris Administration Announces $7 Billion Solar for All Grants to Deliver Residential Solar, Saving Low-Income Americans $350 Million Annually and Advancing Environmental Justice Across America”

With a community solar law in Indiana that would allow independent community solar projects, this funding could unlock clean energy for low- and middle-incoming communities across the state.

Community solar would allow Hoosiers who can’t install panels on their roof, like renters or those with unsuitable roof space, to enjoy the perks of solar energy. By subscribing to a local solar farm, residents would receive credits on their electricity bills for their share of the power produced. This could translate to savings of 10-15% on their energy costs. Furthermore, community solar farms would bolster Indiana’s clean energy infrastructure, reducing reliance on fossil fuels and contributing to a healthier environment.

Today’s announcement is an exciting reminder of the ongoing expansion of solar energy nationwide and here in Indiana—and the potential we have to bring clean energy to all Hoosiers.