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
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% 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 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
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 30% federal tax credit
15 solar companies in Indiana provide pricing on SolarReviews. Here are the best rated companies near you.
4.66 36 Reviews
M R Yan, over 1 month
THiS is the solar installer to go with if you want high quality American made products, knowledgeable assessments and skilled installation. Great turnaround time and excellent communication. Now on the phone and computer we can watch our roof catching sun. Realtime graphs are easy to understand. They defined a recent power outage to the minute, and reset seamlessly when power returned. We even see spikes when the sun pops through on a cloudy day. Basically, we're watching the system buy itself back!
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M R Yan, over 1 month
THiS is the solar installer to go with if you want high quality American made products, knowledgeable assessments and skilled installation. Great turnaround time and excellent communication. Now on the phone and computer we can watch our roof catching sun. Realtime graphs are easy to understand. They defined a recent power outage to the minute, and reset seamlessly when power returned. We even see spikes when the sun pops through on a cloudy day. Basically, we're watching the system buy itself back!
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.
4.46 1,649 Reviews
Dale Michael, 18 hours ago
I had solar panels installed by Blue Raven. They came out and did a site inspection / approval before installation, and approved it, this included a roof inspection. I had the panels installed and they did a lot of damaged to my roof, they broke shingles, wore off the mineral surface and now want to walk away. I now need a new roof where they worked and they do not want to take any responsibility for it saying the roof was old, it is around 16 years old and was a 40 year roof. This company seems to be shadier then shady with no one taking responsibility. It is my boss is out and I can not reach him or I talked to my boss and they will not take care of it. I am filing complaints with the attorneys generals office in two states against them and the contractors boards. Everyone that came here was new and was not sure of what they were doing and did a lot of damage, I am looking at between 20 and 30 thousand dollars and I want them to take care of the damage! if I did not hire them I would not be looking at this right now. CROOKS!!!!!
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Dale Michael, 18 hours ago
I had solar panels installed by Blue Raven. They came out and did a site inspection / approval before installation, and approved it, this included a roof inspection. I had the panels installed and they did a lot of damaged to my roof, they broke shingles, wore off the mineral surface and now want to walk away. I now need a new roof where they worked and they do not want to take any responsibility for it saying the roof was old, it is around 16 years old and was a 40 year roof. This company seems to be shadier then shady with no one taking responsibility. It is my boss is out and I can not reach him or I talked to my boss and they will not take care of it. I am filing complaints with the attorneys generals office in two states against them and the contractors boards. Everyone that came here was new and was not sure of what they were doing and did a lot of damage, I am looking at between 20 and 30 thousand dollars and I want them to take care of the damage! if I did not hire them I would not be looking at this right now. CROOKS!!!!!
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!
4.25 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.
4.06 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.
3.93 2 Reviews
Whole Sun did a great job!, over 1 month
Whole Sun came highly recommended, and they did not disappoint. They require their customers to become educated about the products, which makes for a great working relationship.
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Whole Sun did a great job!, over 1 month
Whole Sun came highly recommended, and they did not disappoint. They require their customers to become educated about the products, which makes for a great working relationship.
3.93 5 Reviews
Allison, over 1 month
We have had an excellent experience with GRNE Solar! When our local solar co-op selected the company prior to us joining we hoped for a good experience and were pleasantly surprised at each step in the process. From the team’s initial proposal and personalized meeting to lay out the system design and details, to the smooth communication, to an efficient and professional installation team, GRNE’s work was comprehensive and very customer friendly. We had a tight timeline to get our system installed, and they pulled it off without a hitch. Amy has been extremely helpful in answering all of our questions promptly and thoroughly. Even after our installation was complete, the team has been available and helpful when we had an issue with our inverter connecting properly to the monitoring app. GRNE truly made going solar feel easy!
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Allison, over 1 month
We have had an excellent experience with GRNE Solar! When our local solar co-op selected the company prior to us joining we hoped for a good experience and were pleasantly surprised at each step in the process. From the team’s initial proposal and personalized meeting to lay out the system design and details, to the smooth communication, to an efficient and professional installation team, GRNE’s work was comprehensive and very customer friendly. We had a tight timeline to get our system installed, and they pulled it off without a hitch. Amy has been extremely helpful in answering all of our questions promptly and thoroughly. Even after our installation was complete, the team has been available and helpful when we had an issue with our inverter connecting properly to the monitoring app. GRNE truly made going solar feel easy!