Summary of Indiana solar incentives 2020
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.
On this page, you can:
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Learn what solar incentives are available to Indiana homeowners
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See what Indiana solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Indiana solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.
Net energy metering in Indiana
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 solar rebates
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.
Solar tax exemptions
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.
NIPSCO feed-in tariff
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.
Cost of solar panels in your part of Indiana after all applicable solar incentives
Showing data for:
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Prices based on a 11.4kW system, after 26% federal tax credit
Solar prices near you
Payback period
10.6-13 years
Net profit (savings less system cost)
$33,505-$40,950
Average size system installed in IN in 2020
11.4kW
Solar panel cost calculator
Best 10 solar companies in Indiana
11 solar companies in Indiana provide pricing on SolarReviews. Here are the best rated companies near you.
4.63 948 Reviews
Latest review
Brett Huebner, 1 day ago
From the very first encounter, Blue Raven is professional and diligent. They answered all my questions and quickly came up with a solution that covers all my power usage. They worked with my HOA for rapid approval. The installation team was fantastic, arrived exactly when they said and all work and electrical was done in 1 day. The team worked efficiently and complete professionals all day even walking me through the new functionality and steps at the end. This is the kind of service we should always get out of companies and not be surprised but it is. I highly recommend this team.
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Latest review
Brett Huebner, 1 day ago
From the very first encounter, Blue Raven is professional and diligent. They answered all my questions and quickly came up with a solution that covers all my power usage. They worked with my HOA for rapid approval. The installation team was fantastic, arrived exactly when they said and all work and electrical was done in 1 day. The team worked efficiently and complete professionals all day even walking me through the new functionality and steps at the end. This is the kind of service we should always get out of companies and not be surprised but it is. I highly recommend this team.
4.47 28 Reviews
Latest review
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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Latest review
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.
4.39 22 Reviews
Latest review
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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Latest review
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.
4.32 25 Reviews
Latest review
JOHN, over 1 month
first, the office was local, second the response from the salesman and installation team was very cordial and helpful.
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Latest review
JOHN, over 1 month
first, the office was local, second the response from the salesman and installation team was very cordial and helpful.
4.25 5 Reviews
Latest review
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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Latest review
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
Latest review
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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Latest review
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
Latest review
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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Latest review
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
Latest review
Anonymous, over 1 month
Power generation has exceeded estimates. Installation went smoothly.
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Latest review
Anonymous, over 1 month
Power generation has exceeded estimates. Installation went smoothly.
3.93 4 Reviews
Latest review
C Gotschall, over 1 month
I went with GRNE for our solar install last fall based on vetting done by Solarize Chicagoland. So glad I did! I couldn't recommend them more highly. Every person I've had contact with has been professional and extremely helpful every step of the way, very conscientious and patient with all my questions. The install went great and the panels have been up and running for months now, working like a dream. Thanks GRNE!
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Latest review
C Gotschall, over 1 month
I went with GRNE for our solar install last fall based on vetting done by Solarize Chicagoland. So glad I did! I couldn't recommend them more highly. Every person I've had contact with has been professional and extremely helpful every step of the way, very conscientious and patient with all my questions. The install went great and the panels have been up and running for months now, working like a dream. Thanks GRNE!
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