Solar Power Rebates, Tax Credits and Solar Panel Incentives in Indiana; 2012 Update
There have been several changes recently to solar power rebates, tax credits and other incentives that effect residents of Indiana.
Indiana's RPS or Renewable Portfolio Standard
Indiana has a rather uninspiring Renewable Portfolio Standard, under Indiana's Renewable Portfolio Standard Act ("RPS"); targets have been set at 10% of electricity production to come from renewable energy by 2025 based on 2010 figures. To help your understanding we distinguish the rebates and incentives available for solar electricity panels into incentives that reduce the up-front cost and incentives that increase the income and savings from the system over time.
Federal Tax Credit
The single most significant financial incentive for your solar power system in Indiana is the same Federal Tax Credit that applies right across the USA. This gives you a credit on your Federal Tax bill equivalent to 30% of the cost of your solar system For more information on this visit out page "The 30% federal tax credit for residential solar power systems" Because this is a tax credit you get the benefit of this when you do your next federal tax return, rather than getting a cheque on the day of installation. Still, it has a real value if you are in a position where you are paying annual federal income tax equivalent to 30% or more of the value of your solar panel system.
Indiana State Rebates
Indiana has a feed in tariff system that two Utilities operate; it does not seem like a great system as upon reading it seems weighted towards large scale renewable projects rather than a residential take up of solar panel systems. It is important to see what your electricity Utility has on offer.
Net Metering means that your electricity provider will monitor how much power you consume from the grid and how much power you generate and send back to the grid. This can be achieved by the installation of a bio-directional meter that separately records what you buy from the grid and what you push back into the grid. The amount of kilowatt hours you feed back into the grid is subtracted from the amount of kilowatt hours you have purchased from the grid in each billing period. So if you used 1000 kwh in a period and sent 300 kilowatt hours into the gird during the day when you weren't using much power at home, then your utility will only bill you for 700 kilowatt hours.
Indiana State Tax Exemptions and State Tax Credits
The good news here folk's is that as of March 2012 your solar power system is exempt from state property tax. As far sales tax goes that's a bit more complex but we think that under the act at the moment you should receive a sales tax free status for your solar pv equipment. Thankfully, we know some experts in your area. Just fill out the quotes form and one of then will be more than happy to go over all those details and help you craft a plan to get the absolute most out of a solar power system for your home. Your quotes from local solar installers through this site are 100% free and without obligation.
Indiana Solar Incentives and investment case: Summary April 2012
Indiana has a reasonable overall package of incentives to help meet its solar targets. It is not the best but it is not the worst. I think the rising cost of electricity to customers will see solar start to make inroads into the renewable energy portfolio in Indiana. So why not get a quote from someone who knows about solar in your area, it's easy and free just click "here"