See how much it will cost to install solar panels for your home in Indiana
Our estimates used by
Solar power in Indiana
Last fact-checked on January 19, 2023, by Catherine Lane
Going solar in Indiana is a great investment for your home. State law requires privately-owned utilities to offer full retail net metering to their customers. Indiana also has a voluntary renewable portfolio standard that allows utilities to opt into the program to have an average of at least 10% of the electricity they supply to customers come from renewable sources.
Net metering combined with the 26% federal tax credit makes solar an excellent choice for Indiana homeowners.
Compare solar quotes from the top solar companies in Indiana
Indiana solar power facts
$2.73 watt
Average cost: 5kW solar power system
?7 Years 10 Months
Average payback time
$42,724
Average lifetime savings
?6¢ kWh
Levelized cost of solar energy
30¢ kWh
If you don't get solar
?8,094 kWh
Annual power production
Cash flow graph based on cash purchase of a 6.87kW system
This 6.87kW system would offset 100% of your energy usage if your typical monthly bill in Indiana is $114, however, your situation may vary so try our solar calculator to get a result tailored to you.
4
Solar companies in Indiana that provide pricing through the Solar-Estimate marketplace.
How much can solar panels save you in Indiana
Average total cost of solar panel installation in Indiana
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $6,027 | $6,509 |
| 4kw | $7,840 | $8,467 |
| 5kw | $9,555 | $10,319 |
| 6kw | $11,214 | $12,111 |
| 7kw | $12,740 | $13,759 |
| 8kw | $14,168 | $15,301 |
| 9kw | $15,561 | $16,806 |
| 10kw | $16,800 | $18,144 |
How much do solar panels cost in Indiana?
$2.73 per watt
Cash purchased solar system
Before 26% solar tax credit
$3.00 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Indiana?
The advantage of installing solar panels in Indiana is the state-mandated net metering requirement. Privately owned utilities must offer kilowatt hour (kWh) credits for excess energy generated by solar systems. Indiana law also offers property and sales tax exemptions for solar energy systems.
The disadvantage of installing solar panels in Indiana is that there is very little in the way of state and utility-based incentives. Also, Indiana does not receive as much sunshine as other states, so a solar system here will produce less than a system in a sunnier state, such as Arizona.
However, full retail net metering and the federal tax credit more than make up for what the state lacks in sunshine. With net metering set to end by 2022, the best time to go solar in Indiana is now!
Best solar companies in Indiana
Find local city information
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Compare solar quotes from the top solar companies in Indiana
How much electricity will solar panels produce in Indiana
Solar panels produce different amounts of energy in different locations.
Around the Indianapolis area solar panels installed on a south-facing 30-degree pitch roof will typically produce:
1,402kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits, and other solar incentives are available in Indiana?
Net metering in Indiana
Solar, by its nature, generates the most power during the middle of the day when most people are at work or school and little power is being used in the home. The net metering policy in Indiana mandates that for every surplus kWh generated by solar (like the excess energy your system creates during the day) utilities must provide a credit that will be applied to future bills in order to offset costs.
Tax exemptions
Indiana homeowners save big on their property taxes when they install residential solar panels. Installing a solar system on one’s property would usually cause an increase in property taxes, however, the property tax exemption excludes 100% of the assessed costs associated with the solar system from the homeowner’s property taxes.
Not to mention, through the state’s sales and use tax exemption, solar system equipment is cleared of state sales tax, leading to even more savings.
Northern Indiana Public Service Company (NIPSCO) feed-in tariff
Customers of NIPSCO have the option of signing up for the utility’s feed-in tariff program. Through this program, NIPSCO purchases all of the energy a solar system produces at a rate of $0.1564 per kWh. In return, NIPSCO retains all renewable energy credits a system produces.
Indiana Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Indiana, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Indiana using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Indiana
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Indiana or Indianapolis ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Indiana solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Indiana
Check out all of the ways energy providers of Indiana can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Net Metering | State | Net Metering |
| Sales and Use Tax Exemption for Electrical Generating Equipment | State | Sales Tax Incentive |
| Solar and Wind Technologies Property Tax Exemption | State | Property Tax Incentive |
| Energy Conservation for Ohioans (ECO-Link) | State | Loan Program |
| NIPSCO Feed-in Tariff (solar energy purchase program) | Utility | Feed-in Tariff |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
