Indiana solar panels: The complete guide in 2024
Data updated Jul 23, 2024
Interested in going solar? You'll need to install a 11.78 kW solar panel system to cover the average electric bill in Indiana, which will cost you about $25,930 after the federal tax credit.
Cost for an average system in Indiana
As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).
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- Overview
- Solar cost
- Incentives
- Electricity cost
- Companies
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 the federal solar tax credit, 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 11.78 kW solar panel system to cover their electricity needs, which comes out to $37,043 before incentives. Prices range from $31,487 to $42,599, but after the federal tax credit, that drops by 30%.
Over 14,000 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 13.28 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 upfront. This provides the best long-term savings.
Solar loan: 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.
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 generally provide the lowest savings and generate the most negative press about solar. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.
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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 |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $11,113 | Lowers your solar panel system's cost by 30% |
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 for the value your solar panels add to your property. |
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
Each year, solar panels get more and more efficient—that is, they produce more power per square foot. As of 2024, the most popular solar panels can produce about 400 watts of electricity when they’re in full sunlight. If you want to make the most of your roof’s solar potential, get panels with at least that much power output.
You should also make sure to select a solar inverter setup that makes sense for your roof’s layout.
And if you want or need a solar battery, be sure to pick one that can integrate cleanly with that inverter.
Premium equipment can come with a high price tag, but it will often save you more money in the long run. The best equipment tends to have the best warranty terms, often guaranteed to 25 years (sometimes even 40!), so you’re covered in case you need repairs or replacements. The highest-quality panels also degrade more slowly, so they’ll maintain more of their power output 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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