Indianapolis · IN
Solar Companies in
Indianapolis, IN
Indianapolis homeowners pay $14,000–$21,000 for a typical 7 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; Indiana's property tax and sales tax exemptions remain active. At Indianapolis Power & Light (AES Indiana)'s rate of $0.138/kWh, most systems pay back in 12–17 years.
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4.5 hrs/day
Peak Sun Hours
$900/yr
Avg. Annual Savings
12–17 yrs
Payback Period
$14,000–$21,000
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Indianapolis
Why Indianapolis Homeowners Are Going Solar in 2026
Indianapolis has moderate solar potential at 4.5 peak sun hours per day — similar to Chicago. Indiana has no state income tax credit for solar, but the property tax and sales tax exemptions provide meaningful savings. AES Indiana's rates are moderate, making payback periods of 12–17 years typical. The lack of a state credit means Indiana is a value-driven market rather than an incentive-driven one.
Key solar facts for Indianapolis
- 4.5 peak sun hours per day
- Indianapolis Power & Light (AES Indiana) average rate: $0.138/kWh
- Average monthly bill: $150
- Popular system size: 7 kW
- Permit timeline: Indianapolis solar permits typically take 2–4 weeks through the City of Indianapolis Department of Business and Neighborhood Services. Marion County jurisdictions vary. HOA approval (if applicable) can add 2–6 weeks.
Active Incentives
Indianapolis Solar Incentives in 2026
Indiana Property Tax Exemption
Property TaxSolar systems are exempt from Indiana property tax assessment. The added home value from solar is not taxed.
Value: Varies
Indiana Sales Tax Exemption
Sales TaxSolar equipment purchases are exempt from Indiana's 7% sales tax, saving approximately $980–$1,470 on a typical system.
Value: Varies
AES Indiana Net Metering
Net MeteringRetail-rate net metering credits for excess generation. Credits roll forward monthly and expire at year end.
Value: Varies
Net Metering in Indianapolis
Indiana net metering credits excess generation at the retail rate. Credits roll forward monthly; unused annual credits are forfeited. Systems up to 1 MW qualify.
Solar Leases & PPAs in Indianapolis
Solar loans and cash purchases are the most common financing options in this market. Lease/PPA availability varies by installer.
How much does solar cost in Indianapolis?
Detailed cost breakdown, financing options, and payback analysis for Indianapolis homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
Indianapolis Solar FAQ
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Indianapolis Solar at a Glance
Solar Installers Serving Indianapolis and Surrounding Areas
Our network of pre-vetted solar installers serves Indianapolis and these nearby communities:
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