Indiana solar panels: The complete guide in 2026
Data updated Jan 23, 2026
Interested in going solar? You'll need to install a 13.03 kW solar panel system to cover the average electric bill in Indiana, which will cost you about $36,951.
Cost for an average system in Indiana
| Cash price | $36,951 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $24,692 | 17 Years | 86% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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Going solar in Indiana
Looking to power your home with clean, sustainable energy that’ll boost your energy independence? Going solar in Indiana reduces your carbon footprint and your reliance on the utility electric grid.
Factor in local incentives and Hoosiers can cut the cost of solar by thousands of dollars, speeding up your payback period and increasing the value of your investment.
Here's our guide to going solar in Indiana.
Cost
How much do solar panels cost in Indiana?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Indiana homeowner needs a 13.03 kW solar panel system to cover their electricity needs, which comes out to $36,951 before incentives. Prices range from $31,408 to $42,494, but Indiana also has some great local incentives.
While this may sound high, it will pay off in Indiana. That's why over 18,000 Indiana homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 16.87 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it up front. This provides the best long-term savings.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These typically deliver immediate savings and can make a lot of sense if you’re looking to keep your capital flexible. Just make sure to choose an offering with low annual escalators to ensure it will continue to provide long-term savings.
Solar loan: This allows you to retain ownership of your system while owing little to no money upfront. Solar loans aren't all created equal. If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options—private solar loans typically come with higher interest rates or upfront fees.
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Incentives
What are the best solar rebates and incentives in Indiana?
Incentives help bring solar's price tag down considerably in Indiana. Here are the major ones to know about:
| Incentive | Average savings in Indiana | Description |
|---|---|---|
Indiana solar property tax exemption | 0.74% of your system's value, annually on average | If you use solar energy as a source of power, you won't need to pay a property tax for on the value added from solar. The average property tax in Indiana is 0.75%. |
Indiana solar sales tax exemption | 7% of your system's value | In Indiana, most components of a solar panel system are exempt from sales tax. According to this law, you don’t have to pay sales tax on your solar modules, racking, and inverters because they are directly involved in producing electricity. However, transformers and monitoring equipment are not exempt. |
Is net metering available in Indiana?
In some states, you'll earn bill credits from your utility company when your solar panel system generates excess electricity and sends it to the grid. This incentive is known as net metering—basically a solar buyback program—and makes it so you will owe very little, or even nothing, on your electric bills with solar panels.
Utility companies in Indiana offer net billing solar buyback programs through the state’s Excess Distributed Generation (EDG) policy. 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.
Get the details on net metering in Indiana or see program-specifics below:
Equipment
Equipment quality
Solar panel efficiency continues to improve every year—that is, they produce more power per square foot. As of 2025, many top-selling solar panels produce around 450 watts in full sunlight. To maximize your roof’s production potential, look for panels with at least that level of output.
It’s also important to choose an inverter setup that fits the design of your roof.
And if you plan to add a solar battery, make sure it’s compatible with your inverter setup for smooth integration.
While higher-end equipment can be more expensive upfront, it often leads to greater savings over time. Premium products usually come with longer warranties—up to 25 years or more—and are built to last. They also degrade more slowly, meaning you’ll get more consistent energy production further into the future.
Companies
Who are the best solar installers in Indiana?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Indiana:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Indiana
- Indiana Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Indiana Utility Regulatory Commission
Read more about how utility companies work in IN.
- Indiana Electricity Profile (EIA)
Learn about IN energy production and prices.
- IN State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in IN.
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