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Yes, that's the right setting to change.  You can inspect the outbound assertion by turning up the logging in logback.xml and verify that it is being sent unencrypted and successfully.  If it's not, I'd figure out why.
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<div>400 Bad Request is more indicative of something bad, like this payload getting delivered to the wrong address, or a lazy implementation.  Either way, I would expect to find more answers at the SP side.</div>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> users <users-bounces@shibboleth.net> on behalf of Rafael Peroco <rafaelp@xlsol.com><br>
<b>Sent:</b> Wednesday, January 24, 2018 4:44:33 PM<br>
<b>To:</b> Shib Users<br>
<b>Subject:</b> Re: Disable encryption on SAML response</font>
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<div dir="ltr">Nate,
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<div>Thank you for your answer.</div>
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<div>I've followed your instructions but keep getting "400 Bad request" from SP. </div>
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<div>For confirmation, I set:</div>
<div>idp.encryption.optional = true<br>
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<div>Is that right?</div>
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<div dir="ltr">Em qua, 24 de jan de 2018 às 21:53, Klingenstein, Nate <<a href="mailto:nklingenstein@calstate.edu">nklingenstein@calstate.edu</a>> escreveu:<br>
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<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d">Rafael,<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d"><u></u> <u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d">You need to set encryption to be optional using idp.properties.  That won’t disable it, but it will allow the IdP to send assertions that are not encrypted
 if there is also no key available for encryption to that service provider.<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d"><u></u> <u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d">Between that setting and ensuring there is no encryption key, you should be set.<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d"><u></u> <u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d">Take care,<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d">Nate.<u></u><u></u></span></p>
<p class="x_MsoNormal"><a name="x_m_-3037115587284591960__MailEndCompose"><span style="font-size:11.0pt; font-family:"Calibri",sans-serif; color:#1f497d"><u></u> <u></u></span></a></p>
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<p class="x_MsoNormal"><b><span style="font-size:11.0pt; font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt; font-family:"Calibri",sans-serif"> users [mailto:<a href="mailto:users-bounces@shibboleth.net" target="_blank">users-bounces@shibboleth.net</a>]
<b>On Behalf Of </b>Rafael Peroco<br>
<b>Sent:</b> Wednesday, January 24, 2018 3:45 PM<br>
<b>To:</b> <a href="mailto:users@shibboleth.net" target="_blank">users@shibboleth.net</a><br>
<b>Subject:</b> Disable encryption on SAML response<u></u><u></u></span></p>
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<p class="x_MsoNormal"><u></u> <u></u></p>
<p class="x_MsoNormal">Is there a way to disable the SAML response encryption?<u></u><u></u></p>
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<p class="x_MsoNormal"><u></u> <u></u></p>
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<p class="x_MsoNormal">The SP side (Oracle) is saying that need response without cryptography.<u></u><u></u></p>
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<p class="x_MsoNormal"><u></u> <u></u></p>
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<p class="x_MsoNormal">Thanks<u></u><u></u></p>
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<p class="x_MsoNormal"><br clear="all">
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-- <u></u><u></u></p>
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<p class="x_MsoNormal"><b><span style="font-size:16.0pt; font-family:"Calibri",sans-serif; color:black">RAFAEL PEROCO</span></b><u></u><u></u></p>
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<div dir="ltr"><span style="color:rgb(0,0,0); font-family:calibri; font-size:16pt; font-weight:bold">RAFAEL PEROCO</span><span style="color:rgb(0,0,0); font-family:times; font-size:medium"></span>
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