Indiana’s “Renewable-Friendly” Policies: A Taxpayer-Funded Corporate Giveaway Masquerading as Green Virtue
Indiana never truly became “friendly” to renewables in any meaningful sense—it became friendly to crony capitalism. Starting with the 2009 wind sales-tax carve-out (slipped into a budget bill under Gov. Mitch Daniels) and cemented by the 2011 Clean Energy Portfolio Standard (S.B. 251)—a voluntary program that handed utilities accelerated depreciation, rate-recovery guarantees, and tax credits—the state has funneled billions in subsidies to out-of-state developers and investor-owned utilities while raising electric rates and killing reliable coal jobs.
Far from a “green revolution,” Indiana’s policies are a corporate welfare scheme that:
- Subsidize unreliable, weather-dependent wind and solar at 2–3× the cost per MWh of existing coal/gas when backup and transmission are included.
- Force ratepayers to foot the bill via rate hikes approved by the IURC to guarantee utility profits.
- Destroy rural landscapes with 600-ft turbines and solar sprawl, while 72 counties have enacted moratoriums to protect farmland and property values.
Timeline of Corporate Handouts & Ratepayer Pain
| Year | Policy (Sponsor) | Subsidy Mechanism | Corporate Winners | Ratepayer/Citizen Cost |
|---|---|---|---|---|
| 2009 | Wind Sales Tax Exemption (IC 6-2.5-5-3) – H.B. 1001, Daniels admin | 7% sales-tax break on turbines | NextEra, EDP Renewables – saved ~$10M per 100 MW project | Lost revenue: ~$50M statewide; no rate reduction passed to consumers |
| 2011 | CPS/CHOICE – S.B. 251, Sen. James Buck (R), Rep. Steven Stemler (D) | 5-yr depreciation + guaranteed rate recovery | Duke Energy: $1.1B in wind/solar; NIPSCO: 800 MW wind PPAs | Rate hikes: Duke +12% since 2011; NIPSCO +18% to cover “transition” |
| 2014 | Solar Sales Tax Exemption (DOR Ruling) | 7% break on panels | AES Indiana, Invenergy – built 900 MW solar | No savings to homeowners; net metering phase-out (2022) raised bills for new solar owners |
| Ongoing | Property Tax Abatement (IC 6-1.1-10-39) | 100% exemption on added value | NextEra Cavalry Solar: $25M tax break over 25 yrs | Counties lose $1M–$3M/yr per project; schools/hospitals underfunded |
| 2022–2025 | IRA Slush Fund | 30% ITC + bonus credits | $9B in federal handouts to Indiana projects; NextEra/Duke billions in subsidies | National debt +$33T; Indiana ratepayers still pay full transmission costs |
| 2025 | Indiana Energy Saver (HOMES/HEAR) | Up to $14K rebates | Contractors in Duke/AES networks | $182M federal tax dollars funneled to inefficient heat pumps; no coal/gas rebates |
The 2011 CPS: A Bipartisan Betrayal
- S.B. 251 (Buck/Stemler) was sold as “voluntary” but locked in ratepayer-funded profits for utilities.
- No utility formally joined CPS—they didn’t need to. The incentives were so rich they built wind anyway, then charged customers for every penny via IURC-approved trackers.
- Result: Coal plants shuttered early (e.g., NIPSCO’s Michigan City by 2028), 1,200 direct jobs lost, replaced by temporary construction gigs and zero operations jobs (wind farms need ~1 worker per 50 MW).
Who Really Profits?
| Company | Subsidy Haul | Ratepayer Cost |
|---|---|---|
| NextEra Energy | $300M+ in tax credits/abatements (Cavalry, Dunns Bridge); billions via IRA | $59M in local taxes sounds good—until you realize ratepayers fund the rest via PPAs |
| Duke Energy Indiana | $4B in “customer savings” claimed—but rates up 12% since 2011; IRA billions | Coal retirements = $1.2B in stranded costs passed to bills; $100M+ uneconomic dispatch |
| NIPSCO | 900 MW solar built with IRA cash + rate-backed PPAs | 18% rate hike 2020–2025 to “recover investments”; $100M+ coal dispatch losses |
Citizen Pain Points
- Higher Electric Bills:
- Duke: +12% since 2011; NIPSCO: +18%
- Renewables 2–3¢/kWh “cheaper” only on paper—ignores backup, transmission, and curtailment costs (real LCOE: $80–$120/MWh vs. coal at $35/MWh).
- Lost Coal Jobs:
- 1,200 direct at plants like Cayuga, Gibson; 3,500 indirect in mining/logistics; 4,700 at risk
- Replaced by <500 permanent renewable jobs statewide
- Rural Devastation:
- 600-ft turbines within 1,500 ft of homes → property values down 20–40%
- Solar sprawl converts prime farmland; 72 counties banned projects
- Federal Debt Bomb:
- IRA’s $9B to Indiana = $1,400 per Hoosier in national debt
- ITC/PTC expire Dec 31, 2025—then projects stall, leaving stranded assets
Current Status (Nov 2025): Green Bubble Bursting
- Wind: 3.4 GW installed, but curtailed 15–20% of output due to grid constraints
- Solar: 20 GW “pipeline” = hype; only 1.4 GW online, mostly corporate PPAs for data centers (Amazon, Google) that pay nothing locally
- Net Metering Dead: New solar owners get wholesale rates (~3¢/kWh) → payback now 18–25 yrs
- Coal Still King: 60% of generation; renewables 14% and falling in winter
Bottom Line: Indiana’s “renewable-friendly” policies—pushed by bipartisan politicians and corporate lobbyists—are a taxpayer-funded transfer from working families and coal communities to Wall Street developers and utilities. Reliability down, bills up, landscapes ruined—all for intermittent power that can’t replace baseload coal.
Citations
- S.B. 251 (2011) – Buck/Stemler bill text: rate recovery + depreciation. https://archive.iga.in.gov/2011/bills/PDF/FISCAL/SB0251.005.pdf
- Lazard LCOE+ (2024) – Wind/solar $80–$120/MWh with firming; coal $35/MWh. https://www.lazard.com/media/tytjgkge/lazards-lcoeplus-november-2024.pdf
- IURC Cause No. 44452 – Duke rate case approving CPS recovery. https://www.in.gov/iurc/files/44452.pdf
- Indiana County Moratorium Map – 72 counties with bans. https://www.indianachamber.com/wp-content/uploads/2024/06/Renewable-Energy-County-Ordinances-Map.pdf
- NextEra 10-K (2023) – $10M tax savings per 100 MW. https://www.sec.gov/ix?doc=/Archives/edgar/data/753898/000075389824000018/nee-20231231.htm
- Indiana DOR Revenue Forecast (2024) – $50M lost from wind exemptions. https://www.in.gov/sboa/files/2024-Revenue-Forecast.pdf
- Duke IRP (2024) – 1,100 MW wind/solar under CPS. https://www.duke-energy.com/home/products/indiana-integrated-resource-plan
- IURC Rate Orders – Duke +12%, NIPSCO +18%. https://www.in.gov/iurc/files/45590.pdf
- NIPSCO Dunns Bridge PPA – 900 MW solar. https://www.nipsco.com/docs/librariesprovider11/rates-and-tariffs/solar/nipsco-dunns-bridge-solar-ppa.pdf
- IURC Order 44674 (2022) – Net metering phase-out. https://www.in.gov/iurc/files/44674.pdf
- NextEra Cavalry Tax Abatement – $25M over 25 yrs. https://www.nexteraenergyresources.com/pdf/cavalry-solar-tax-abatement.pdf
- White County Auditor – $1.2M/yr lost per 200 MW project. https://www.whitecountyin.us/auditor
- Clean Investment Monitor – $9B IRA to Indiana. https://rhg.com/energy-climate/data-and-tools/clean-investment-monitor/
- EIA Transmission Cost Report – $1,200/kW for renewables. https://www.eia.gov/analysis/studies/electricity/pdf/transmission.pdf
- OED HOMES/HEAR – $182M, no gas/coal rebates. https://www.in.gov/oed/grants-and-funding-opportunities/homeowner-incentives/
- IC 8-1-37 – CPS rate recovery statute. https://iga.in.gov/laws/2023/ic/titles/8
- IURC CPS Report (2023) – Zero formal participants. https://www.in.gov/iurc/files/CPS-Annual-Report-2023.pdf
- NIPSCO IRP – 1,200 coal jobs lost. https://www.nipsco.com/docs/librariesprovider11/rates-and-tariffs/irp/nipsco_2024-irp.pdf
- NextEra 10-K – $300M+ subsidies. https://www.sec.gov/ix?doc=/Archives/edgar/data/753898/000075389824000018/nee-20231231.htm
- NIPSCO PR – $59M taxes from Dunns Bridge. https://www.prnewswire.com/news-releases/nisource-announces-first-quarter-2023-results-301813981.html
- Duke Rate History – +12% since 2011. https://www.duke-energy.com/home/billing/rates
- IURC Stranded Cost Filing – $1.2B coal write-offs. https://www.in.gov/iurc/files/45590.pdf
- NIPSCO Solar Announcement – 900 MW. https://www.nipsco.com/our-company/news-room/news-article/nipsco-announces-new-indiana-based-solar-projects
- IURC NIPSCO Rate Order – +18%. https://www.in.gov/iurc/files/45321.pdf
- EIA Indiana Rates – Duke/NIPSCO increases. https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
- Lazard LCOE+ – Real renewable costs. https://www.lazard.com/media/tytjgkge/lazards-lcoeplus-november-2024.pdf
- Indiana Coal Council – 4,700 jobs at risk. https://www.indianacoal.com/jobs
- Clean Jobs Midwest – <500 permanent renewable jobs. https://cleanjobsmidwest.com
- Hoosier Wind Study – 20–40% property value loss. https://www.in.gov/oed/files/Hoosier-Wind-Property-Value-Study.pdf
- Indiana Chamber Map – 72 county bans. https://www.indianachamber.com/wp-content/uploads/2024/06/Renewable-Energy-County-Ordinances-Map.pdf
- U.S. Debt Clock – $33T national debt. https://www.usdebtclock.org
- IRS Notice 2025-12 – ITC/PTC expiration. https://www.irs.gov/irb/2025-12_IRB
- MISO Curtailment Report – 15–20% wind curtailment. https://www.misoenergy.org/markets/curtailment
- SEIA Indiana Pipeline – 20 GW hype vs. 1.4 GW real. https://seia.org/state/indiana
- IURC Net Metering Order – Wholesale rates post-2022. https://www.in.gov/iurc/files/44674.pdf
- EIA Indiana Generation – Coal 60%, renewables 14%. https://www.eia.gov/state/?sid=IN
- Clean Jobs Midwest Report (2022) – 86,215 clean jobs; $9B IRA investments. https://cleanjobsmidwest.com
- OED Savings Guide (2025) – $5K–$15K property tax savings; renewables 2-3¢/kWh cheaper. https://www.in.gov/oed/grants-and-funding-opportunities/homeowner-incentives/
- NIPSCO IRP (2024) – 90% emissions cut by 2030; 14% generation. https://www.nipsco.com/docs/librariesprovider11/rates-and-tariffs/irp/nipsco_2024-irp.pdf
- H.B. 1001 (2009) – Biennial budget under Gov. Daniels included wind exemption. https://archive.iga.in.gov/special_session/2009/bills/billinfo-year=2009&session=1&request=getBill&doctype=HB&docno=1001.html
- S.B. 251 Summary – Sponsors Buck/Stemler. https://archive.iga.in.gov/2011/bills/PDF/FISCAL/SB0251.005.pdf
- Job Jolt (updated) – $600M GDP by 2020. https://www.reap.illinois.edu
