Solar Panels in Indiana
Value-Driven Solar in the Midwest
$800–$1,100/yr
Avg. Annual Savings
4.5 hrs/day
Peak Sun Hours
12–17 years
Payback Period
$14,000–$21,000
Avg. System Cost
Overview
Is Solar Worth It in Indiana?
Indiana has moderate solar potential at 4.5 peak sun hours per day. While not a top-tier solar state, the combination of property tax and sales tax exemptions, retail-rate net metering, and a competitive installer market make solar a viable long-term investment for Indiana homeowners. With the federal 30% ITC expired in 2026, payback periods of 12–17 years are typical.
Benefits
Why Go Solar in Indiana
Reduce Your Electric Bill
Indiana homeowners save an average of $800–$1,100/yr after going solar.
State & Local Incentives
Indiana offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Indiana Solar Incentives & Tax Credits
Indiana Property Tax Exemption
Tax ExemptionSolar systems are fully exempt from Indiana property tax assessment. The added home value from solar is not taxed.
Indiana Sales Tax Exemption
Tax ExemptionSolar equipment purchases are exempt from Indiana's 7% sales tax, saving approximately $980–$1,470 on a typical system.
What Changed in 2026 for Indiana Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for Indiana homeowners and what options remain.
Federal ITC Has Expired
The 30% federal residential solar tax credit expired Dec 31, 2025. No federal credit is available for systems installed in 2026. Indiana has no state income tax credit to replace it.
Property & Sales Tax Exemptions Remain
Indiana's property tax exemption (solar added value not taxed) and 7% sales tax exemption on equipment remain active. These provide $980–$1,470 in upfront savings on a typical system.
AES Indiana Net Metering Active
Retail-rate net metering credits for excess generation. Credits roll forward monthly and expire at year end. Indiana is a value-driven market — payback periods of 12–17 years are typical.
Common Questions
Indiana Solar FAQ
Local Solar Companies
Solar Companies by City in Indiana
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