The Inflation Reduction Act (IRA) introduced the Energy Community Tax Credit Bonus, providing an additional 10% investment tax credit for renewable energy projects located in designated “energy communities” with a legacy of coal mining and coal-fired power generation. While this policy aims to accelerate clean energy investment and economic revitalization in historically fossil fuel-dependent regions, less is known about how these communities are responding to new renewable development on the ground. This study examines local responses to large-scale solar projects in Southern Indiana, a state characterized by strong local siting authority and county-level control over energy project approval. We conducted 22 semi-structured telephone interviews with county commissioners and local officials across 32 counties between January and March 2025, including 13 interviews in counties designated as energy communities due to coal mine or coal plant retirements, and 9 interviews in adjacent counties without energy community status. Our findings indicate that coal’s legacy continues to shape local identity, political culture, and economic narratives, with 86% of respondents citing its historic importance through tax revenues, employment, industrial attraction, and community stability. At the same time, economic considerations were central to solar energy acceptance, as 73% of respondents emphasized tax revenue, landowner lease income, and local economic activity as key benefits of solar development. However, despite these perceived advantages and the added incentives from the IRA, officials consistently identified constituent pressure and local political dynamics as the primary factors influencing project approvals and denials, often superseding technical siting criteria or economic rationale. These results suggest that federal place-based incentives alone are insufficient to ensure local acceptance of renewable energy projects in post-coal regions, as historical energy identities, land use values, and political contexts mediate how such policies are interpreted and implemented at the local level. The findings also point to the potential role of clearer state-level siting guidance, and early, sustained community engagement in improving the prospects for large-scale solar deployment in these areas. By situating county-level decision-making within broader federal decarbonization policy and regional energy transition dynamics, this study contributes to emerging scholarship on post-coal transitions, place-based policy, and the governance challenges surrounding utility-scale renewable energy development.
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Assessing Public Acceptance of Large-Scale Solar Projects in Southern Indiana
Published:
07 May 2026
by MDPI
in The 3rd International Online Conference on Energies
session Energy Economics and Policy (Thermo-Economics, Exergy Economics)
Abstract:
Keywords: Solar energy; Energy communities; History; Interview research; Indiana
