The Indiana State government, along with the Federal Government, has put many incentives in place for the use of wind energy. The three main categories of incentives are utility, state, and federal.
Utility Utility incentives target customers who have their own small wind energy systems. These incentives consist of
net metering and
feed-in tariff (FIT) incentives. Net metering allows the utility company to track the energy the wind system produces, and customers can then use that energy as a credit on their bills. The FIT program, only adopted by the utility company Northern Indiana Public Service Company (NIPSCO), pays their customers per kWh of energy produced by their wind turbine, as opposed to offering a credit. Currently NIPSCO mandates a rate of $0.17/kWh for systems less than or equal to 100 kW and $0.10/kWh for systems 100 kW to 2 MW.
State State-level incentives consist of the Renewable Energy Property Tax Exemption and Indiana Sales Tax Incentive for Electrical Generating Equipment. The renewable energy exemption states that the assessed value of any wind system installed after December 31, 2011, is eligible for property tax exemption pending the completion of state form 18865. The sales tax incentive states that the equipment used to produce renewable electricity are eligible for a sales tax exemption. The state of Indiana also implemented a voluntary Clean Energy Portfolio Standard (CPS) in May 2011. The CPS set a goal for the state to have 10% of its electric generation come from clean energy by 2025.
Federal Federal incentives include the Rural Energy for America Program (REAP),
Business Energy Investment Tax Credit, and the Residential Renewable Energy Tax Credit. The
REAP program provides grants to agricultural producers and rural businesses for projects that yield more energy efficiency and renewable energy. The Business Energy Tax Credit, as of September 18, 2017, is only available to large wind turbines (greater than 100 kW in capacity) and was set to expire on December 31, 2019. The credit is currently at a rate of 24% of invested expenditures with no credit cap. The Residential Renewable Energy Tax Credit is similar to the Business Investment credit except only small turbines qualify (cannot exceed 100 kW). As of September 18, 2017, the tax credit was at 30% with no max. This credit was also set to expire on December 31, 2019. ==See also==