Heads up Hoosiers – if you’re thinking about going solar, Indiana has several financial incentives for installing a solar photovoltaic system. From Indianapolis to South Bend, going solar is a great option thanks to the state and federal incentives available.
The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand.
Indiana laws help you go solar
Let’s take a look at the top laws in IN that will be beneficial to the prospective solar shopper:
Net metering in Indiana
Solar energy systems under 1 megawatt (MW) in size are eligible to participate in net metering, which allows you to send your extra electricity back into the grid and get credits on your electric bill. When your panels aren’t producing all the electricity you need, you can use your credits instead of having to pay for electricity from your utility.
Solar easement laws
Like many other states, Indiana has solar easement and rights laws that help you work with your neighbors to make sure your solar installation isn’t covered by shade. Additionally, these laws prevent planning and zoning authorities from blocking your home solar panel installation.
Indiana tax benefits for solar
Check out the most significant incentives that will sweeten the deal for solar in Indiana:
Renewable energy property tax exemption
For any new solar PV system installed in Indiana, the assessed value of the system is exempt from your property taxes. That means that, even though your solar installation adds value to your property, the added value can’t be counted when property is being assessed for taxes. Thanks to the Indiana renewable energy property tax exemption, you don’t have to worry about your solar system adding to your tax load.
Indiana sales tax exemption
When you purchase a solar energy system in Indiana, many of the components are exempt from sales tax under Indiana’s sales tax exemption for electrical generating equipment. According to the law, you don’t have to pay sales tax on your solar modules, racking, and inverters because they are directly involved in the production of electricity.
The federal solar tax credit
Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).