INDIANAPOLIS (AP) – A state Senate committee has approved a bill that Indiana’s inventor-owned utilities back that would eliminate much of the financial incentive for installing solar panels.

The measure by Republican Sen. Brandt Hershman was approved Thursday on an 8-2 vote.
Solar panel owners who feed surplus energy to the power grid are currently compensated at a retail market rate. Supporters say that allows them to pay off the expensive investment in solar. The measure would drastically reduce that rate in five years.

The bill was amended to grandfather in current solar panel owners for 30 years after substantial opposition was voiced during a hearing last week.

Hershman said concern over compensation rates will likely be moot in the coming years as the cost and efficiency of the technology improves.