Solar belongs on rooftops, not Indiana farmland | Opinion

Solar farms depend on subsidies. It is hard to justify this corporate welfare while the state and federal governments take away similar benefits from homeowners.

While solar farms might not cross your mind as an issue that can decide elections, their development fills town halls in rural Indiana with angry locals. Tippecanoe and Clark counties passed new restrictions on solar farms this month, while more than 70 other counties have temporary bans, for good reason.

“The locations that solar companies want are in the best agricultural grounds in my district,” state Sen. Jean Leising, R-Oldenburg, told me over the phone. Leising is the chair of the Senate Committee on Agriculture.  “[Some people are] worried about the valuation of their property. Then you have people that are saying, plus, I just don’t want to look at it in my backyard.”

Leising successfully pushed the state to study the loss of prime farmland last year. Indiana has lost 345,000 acres of farmland and over 3,050 farms since 2010. However, the farmland still in use has become more efficient and the state is producing more crops than ever before.

A bigger concern is that commercial-scale solar farms depend on government subsidies and tax abatements. It is hard to justify this corporate welfare while the state and federal governments take away similar benefits from individuals looking to make their homes more self-sufficient. If the state and federal governments are going to invest in solar somewhere, it should be on rooftops, not on Indiana farmland.

The state recently created the ultimate tax abatement for solar farms. Businesses won’t pay any personal property taxes if they have less than $2 million worth of equipment in 2026, and the personal property taxes paid for new equipment can lower to zero as the equipment fully depreciates in value. Some estimates show Indiana solar farms averaged about $50,000 in personal property per acre, meaning they will likely save hundreds of thousands of dollars.

In the same bill, Indiana eliminated a property tax deduction for homeowners whose home values increase after installing solar panels. A study from Zillow showed that homes that installed solar panels increased in value by 4.1%, and the deduction was originally put in place to make sure they weren’t unfairly punished for making their homes more energy efficient.

Not to mention, the state recently eliminated net metering on behalf of energy companies. Rather than receiving full retail rates for excess electricity sent back to the grid, homeowners are now paid at a much lower rate. Meanwhile, new limits on tax credits for solar energy in the federal budget reconciliation bill are predicted to favor large companies that can pass on development costs and make it much harder for homeowners to invest in solar.

Not only do large solar corporations receive unfair advantages at the expense of homeowners, but also they’re getting these benefits despite being less efficient at producing energy.

“Some people say sun is free and wind is free, but they’re not … because there’s a huge transmission cost,” Leising said. “When you site a solar field in the middle of nowhere … then how are you going to get that power to where it needs to go? Right now, we don’t have enough battery storage to store the energy produced when the sun is shining.”

Solar panels on homes, on the other hand, are right next to where most of the energy produced is used.

If there is any benefit to solar energy, it is the possibility of seeing more self-sufficient homes and a more decentralized energy grid, where people aren’t dependent on government-granted monopolies to live their daily lives.

The benefit is almost entirely lost when it becomes another tool in the belts of those monopolies, because there are more efficient, reliable and cleaner forms of energy out there.

Any issue that involves personal property rights is going to be complicated, but when a community’s tax dollars are being stewarded poorly, it should surprise no one to see them mobilize like they have in rural Indiana.

Contact Jacob Stewart at 317-444-4683 or jacob.stewart@indystar.com. Follow him on X and Instagram.