There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Indiana is set to phase out net metering, a rule that makes your utility credit you for all the power you produce but aren’t able to use onsite. This solar benefit gets cut for all people who install solar after 2022, so now is a great time to install home solar to lock in your credits. Read on to discover all your need to know about home solar policy, incentives, and savings in the Hoosier State.
Learn what solar incentives are available to Indiana homeowners
See what Indiana solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Indiana solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Indiana
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.
Current Indiana net metering standards call for surplus energy production to be applied as a credit on your next monthly bill. Credits can be carried over indefinitely, but there are no provisions forcing the utility to cut you a check if you continually run a surplus. However, the program is set to expire at the end of 2022, so it’s important to get enrolled in the program before that date arrives!
Overall the net metering incentive in Indiana is pretty good. 40% of current net metering capacity is reserved for residential use, you shouldn’t have any problems getting into the program.
Indiana does not currently offer any rebates for people who purchase solar panels for their home. Thankfully, the state does offer tax exemptions to help make solar power more attractive.
First up, you are 100% exempt from all property taxes associated with the increase in home value caused by installing a solar power system. And there is an increase. That’s going to save you a pretty nice chunk of change every year.
You also are exempt from all sales tax (that’s 7% here) on the purchase of your solar power system, which is a really nice benefit in a state without much going for it in terms of solar policy. However, the actual law for solar sales tax exemption states you need to be selling this energy to qualify for a sales tax exemption.
Technically, with net metering, you are selling power back to the utility, but you may want expert opinion on the matter in Indiana, particularly if you don’t see a sales tax exemption on your solar installation quote. If all this is sounding complicated and discouraging, don’t worry – the solar installers we partner with can take care of all these details for you and make sure you save the most money possible. Start by calculating your potential savings with solar power.
If you’re lucky enough to live in an area served by NIPSCO, you can enroll in a special program to get excess credit for your solar power. Under this program you can install a solar system up to 10 kilowatts in size, and either elect to sell all the electricity back to NIPSCO at a rate of $0.15 per kilowatt-hour (kWh), OR you can declare a kWh allotment to sell back to NIPSCO at this rate, while using the rest for yourself.
With going electric rates at $0.12/kWh, you can stand to make some additional money with this program and also cover your electric usage. For more details on how this program works, check the NIPSCO Feed-in Tariff Website.
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Prices based on a 11.4kW system, after 26% federal tax credit
16 solar companies in Indiana provide pricing on SolarReviews. Here are the best rated companies near you.
4.50 27 Reviews
The sailer, over 1 month
An earlier experience with Jeremy at a home show caused me to give him the first call when I wanted to explore my solar options. After a review of my house and interests by JeremyI I was convinced j had the person I wanted to work with.
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The sailer, over 1 month
An earlier experience with Jeremy at a home show caused me to give him the first call when I wanted to explore my solar options. After a review of my house and interests by JeremyI I was convinced j had the person I wanted to work with.
4.47 28 Reviews
Anonymous, over 1 month
I am very pleased with my solar system. It runs my whole shop and since the installation in 2015 I have had zero issues. The people at Photon Electric are professional's and I would highly recommend them.
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Anonymous, over 1 month
I am very pleased with my solar system. It runs my whole shop and since the installation in 2015 I have had zero issues. The people at Photon Electric are professional's and I would highly recommend them.
4.42 22 Reviews
Anonymous, over 1 month
Midwest installed an 18.9 kw ground mounted system for us that was an especially challenging set of circumstances. Without going into all the details, let's just say they went above and beyond to do whatever it took to make this work, and stayed at their quoted amount even after a lot of challenges. Top notch organization!
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Anonymous, over 1 month
Midwest installed an 18.9 kw ground mounted system for us that was an especially challenging set of circumstances. Without going into all the details, let's just say they went above and beyond to do whatever it took to make this work, and stayed at their quoted amount even after a lot of challenges. Top notch organization!
4.40 42 Reviews
Marc Wallace , 5 days ago
From the initial call through the build and with following up on the switch on, everyone has been good to work with and positive. They even sent a team to fill in a trench in the yard with soil and grass seed. Seeing the energy production on the app is gratifying too.
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Marc Wallace , 5 days ago
From the initial call through the build and with following up on the switch on, everyone has been good to work with and positive. They even sent a team to fill in a trench in the yard with soil and grass seed. Seeing the energy production on the app is gratifying too.
4.39 22 Reviews
Curt R, over 1 month
From start to finish Mark Brough and the whole team at Modern Mill provided outstanding, professional service. If you are considering the solar energy alternative, call them.
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Curt R, over 1 month
From start to finish Mark Brough and the whole team at Modern Mill provided outstanding, professional service. If you are considering the solar energy alternative, call them.
4.25 5 Reviews
Irene Pletka, over 1 month
Very pleasant and professional. Have recommended them to others.<br />I think education about renewable energy resources is a vital component of public policy.
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Irene Pletka, over 1 month
Very pleasant and professional. Have recommended them to others.<br />I think education about renewable energy resources is a vital component of public policy.
4.25 5 Reviews
Anonymous, over 1 month
I was lucky enough to be passed over by a couple other solar installers to ultimately work with Matt and the whole Jefferson team. Matt did a great job sending me all the information to get my HOA to approve my solar plan keep esthetics high on the priority list while still maximizing production. The one small timing hiccup was addressed well by Matt and Rob still allowed for the install to get completed. To give them even more credit the follow on care has been great! My array has something that is effecting it’s production which appears to be an error from the utility not anything Jefferson has control over. Rob continues to follow up to help find a resolution to have the whole system work at maximum efficiency.<br /><br />Thank you Matt, Rob, and all the great people at Jefferson Electric that has made my experience so positive!
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Anonymous, over 1 month
I was lucky enough to be passed over by a couple other solar installers to ultimately work with Matt and the whole Jefferson team. Matt did a great job sending me all the information to get my HOA to approve my solar plan keep esthetics high on the priority list while still maximizing production. The one small timing hiccup was addressed well by Matt and Rob still allowed for the install to get completed. To give them even more credit the follow on care has been great! My array has something that is effecting it’s production which appears to be an error from the utility not anything Jefferson has control over. Rob continues to follow up to help find a resolution to have the whole system work at maximum efficiency.<br /><br />Thank you Matt, Rob, and all the great people at Jefferson Electric that has made my experience so positive!
4.06 6 Reviews
Anonymous, over 1 month
The whole team at Morton Solar was professional, courteous, on time and efficient. I've been very pleased with my Morton Solar investment!
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Anonymous, over 1 month
The whole team at Morton Solar was professional, courteous, on time and efficient. I've been very pleased with my Morton Solar investment!
4.01 18 Reviews
Anonymous, over 1 month
Power generation has exceeded estimates. Installation went smoothly.
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Anonymous, over 1 month
Power generation has exceeded estimates. Installation went smoothly.
Ben Zientara
January 26, 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Ana Almerini
March 4, 2021
Adding solar panels to your boat will keep your battery charged and your appliances running, from a quick fishing trip to sailing an entire open ocean.
Zeeshan Hyder
March 3, 2021
Jinko Solar makes a lot of solar panels — but are they a good choice for your home? Here’s a complete review of the Chinese solar giant.
Ben Zientara
February 26, 2021
A complete review of Q CELLS solar panels, including their efficiency, warranty, and cost. If you’ve gotten a solar quote featuring Q CELLS, learn more about them here.
Ana Almerini
February 24, 2021
Fossil fuel jobs will be lost as we transition to a clean economy, but there are jobs to be gained by workers with transferable skills.