In the Dark Ages of renewable energy

Indianapolis Star
August 5, 2010

By Brad Morton, Evansville.

At a time when other states and countries are taking bold steps toward the use and manufacturing of renewable energy, Indiana seems to be back peddling into the Dark Ages. Instead of promoting renewable energy like other states, Indiana restricts renewable energy by not allowing most customer classes to "net-meter" their energy.

Being able to net-meter means you are credited the full retail rate for the energy that your solar system or wind turbine produces. However, in Indiana most customer classes will receive only the wholesale rate for the energy they produce, meaning that the utility company will make a profit off the energy you produce even if all of that energy is used in your own building.

Only residential customers and schools of investor-owned utilities can net-meter. This leaves out all retail businesses, health-care facilities, churches, manufacturing facilities, or any customer of a Rural Electric Membership Co-Operative. Basically, you are subsidizing the utility company in this scenario.

Why in the world does Indiana want to limit the use of renewable energy? The benefits are numerous both economically and environmentally. Southern Indiana is not known for strong wind resources like those found in Northern Indiana. However, there are pockets in certain areas that have acceptable wind resources.

Southern Indiana does have excellent solar energy resources. In fact, Evansville has more solar energy then Jacksonville, Fla., from June to September, when our air conditioners are running the most. And, the power output curve from solar energy generation can be tuned to meet these air conditioner demands on a daily basis by mounting the panels to face in the southwestern direction.

As an example of successful implementation of solar energy in Southern Indiana, you can visit the Chrisney Public Library in Spencer County. The library is the first net-zero library and one of the first 10 documented zero-energy buildings in the United States. Net-zero means that the building produces as much energy or more than it consumes.

The library has received numerous awards, both nationally and regionally, including the "Partner in Progress" awarded by Lt. Gov. Becky Skillman.

The grid-tied solar system that provides power for the building will provide power at twelve cents ($0.12) per kilowatt hour for the next 30 years. This is already cheaper then the current utility rate and I can't imagine what the utility rate will be in 30 years.

The problem with financing solar energy is that the consumer is paying for 30 years of energy up front. It is a long-term investment. To help offset this up-front cost, the state of Indiana awarded a grant through the Indiana Department of Energy that paid about 30 percent of the cost of the system, or about $24,000.

So, with such a successful project, what does the Indiana Department of Energy do with the grant program? They pull the plug on funding solar photovoltaic projects. That's right, they decided not to fund any future grid-tied photovoltaic projects.

Right now, Indiana has all of its eggs in one basket getting 96 percent of its energy from coal. Yet, the Department of Energy gave $450 million of taxpayer subsidies to the Edwardsport coal plant project.

How will this help us diversify our energy mix? How will this help the consumer struggling to pay the electricity bills? How will this create competition in a capitalistic energy market that could help keep prices down? How will this help Indiana reduce emissions? How will this help get us off foreign oil?

All electricity consumers in Indiana should have the choice to use solar or wind energy if desired, not only for their right but for the health of the economy.

It was conservative Ann Rynd who said, "Free competition is the freedom to produce, and the freedom to trade what one has produced, for one's own self-interest, i.e., in the pursuit of one's own happiness."

Electricity consumers in Indiana are currently playing against a stacked deck, and the dealer is our government. Only the government can level this playing field. You can speculate for yourself why Indiana's utility and coal companies are allowed to maintain their monopoly status.

Brad Morton lives in Evansville and is the President of Morton Solar and Wind, LLC. Morton is also a Founding Member of the Indiana Renewable Energy Association.