Indiana solar rebates and incentives: 2026 guide

Indiana doesn't offer the strongest solar incentive programs out there. But that doesn't mean solar isn't worth it—especially if your electric bills are eating up a big chunk of your monthly budget.

Solar's real value isn't about rebates. It's about taking control of your electricity costs for the next 25-30 years. As utility rates continue their steady climb, locking in lower energy costs now can deliver substantial savings over time. Even without robust state programs, many Indiana homeowners with decent sun exposure and moderate to high electric bills find that solar still pays for itself. Here's how you may be able to lower your solar costs in Indiana—and whether it makes sense for your home.

Unfortunately, Indiana doesn't offer many incentives for solar. But if your electric bills are high, going solar can still make sense.

In addition to the great rebates and incentives above, Indiana offers tax exemptions for solar panel systems. Solar panels generally raise a home's property value, but thanks to Indiana’s solar property tax exemption, you won’t have to pay extra tax on that added value. The solar sales tax exemption ensures you won't have to pay a sales tax on most of your system’s equipment.

Utility companies in Indiana—including NIPSCO, Indiana Michigan Power, AES, other electric co-ops, and municipal providers—do offer solar buyback programs through the state’s Excess Distributed Generation (EDG) policy. 

While the sun is shining, your solar panels might produce more electricity than your home needs at any given moment. Under the net billing solar buyback programs in Indiana, you can sell that excess power back to the grid for credits on your electricity bill. 

The catch is that the utility companies only offer partial credit for every kWh—you’re selling the electricity to them at a significant discount, compared to what they’ll charge you to buy that electricity back later. 

The exact rates depend on the utility company, but it’s generally about half of the retail rate. (Technically it’s 125% of the average wholesale price of electricity for the prior year, before the utility company adds their markup). NIPSCO, for example, pays about $0.12 cents per kWh sent to the grid for solar panel systems between 5 kW and 10 kW.

If you want to squeeze the most possible value out of your solar panels under net billing, consider installing a solar battery.

(Indiana previously offered a net metering program, which was more consumer-friendly in several important ways. But as of 2022, utility companies in the state are no longer required to offer true net metering for new solar installations.)

Indiana doesn't offer any state-specific battery incentives.

Solar batteries paired with solar panels can make good financial sense in Indiana. It boosts your energy independence and provides backup power during an outage, and it helps you keep more of your own (free) solar power rather than letting the utility company take it at a steep discount.

If you're looking for solar installers in Indiana, here are some popular suggestions: