State solar guide
Indiana solar economics in 2026 depend entirely on your utility rate, available state incentives, and net-metering rules. The federal residential credit expired December 31, 2025. We present the honest picture for your location.
Sources: ElectricChoice June 2026 | NREL PVWatts (statewide range; Indianapolis area approximately 4.66 peak sun hours per day) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Indiana's five largest investor-owned utilities (AES Indiana, CenterPoint Energy, Duke Energy Indiana, Indiana Michigan Power, NIPSCO) no longer offer traditional net metering to new customers. New installations enroll in the Excess Distributed Generation (EDG) program, which credits excess generation at 125 percent of avoided cost - typically 3 to 5 cents per kWh, well below the retail rate of approximately 16 cents. Customers who installed before Indiana's 2022 policy change are grandfathered into full retail net metering until 2032.
AES Indiana, Duke Energy Indiana, CenterPoint Energy, Indiana Michigan Power, and NIPSCO each set their own EDG avoided-cost rate. The gap between the 3 to 5 cent export credit and the 16 cent retail rate means exported surplus has minimal value. Systems should be sized conservatively to maximize self-consumption. Source: Solar United Neighbors, Indiana EDG program documentation.
Program: Excess Distributed Generation (EDG). Last verified: June 2, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Indiana utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Indiana homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Indiana Solar Incentives State and local programs Incentive amounts and availability change frequently. Verify at dsireusa.org before relying on any program. | See description Indiana does not offer a statewide solar rebate. No major utility rebate programs identified for residential solar as of June 2026. Individual co-ops may offer limited programs; verify with your specific utility. | Indiana homeowners. Verify current programs at dsireusa.org. | Limited | DSIRE (opens in new tab) |
| Indiana Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) Indiana fully exempts solar-added home value from property tax assessment. The exemption covers the assessed value increase attributable to a residential solar energy system. Average Indiana property tax rate is approximately 0.75 percent. | Indiana residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
| Indiana Solar Sales Tax Exemption Sales tax exemption Verify that your specific installation and municipality qualify for the Indiana sales tax exemption. | State sales tax savings on system equipment and installation Solar modules, racking, and inverters are exempt from Indiana's 7 percent sales tax. Transformers, monitoring equipment, and installation labor are excluded from the exemption. | Indiana homeowners purchasing qualifying solar energy systems. | Active | DSIRE (opens in new tab) |
Data last verified June 2, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Savings example
This example uses real Indiana market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at approximately 9,100 kWh for a 7 kW system at 4.66 peak sun hours. Assumes 85 percent self-consumption at 16.06 cents per kWh full retail value; remaining 15 percent exported at 4 cents per kWh EDG avoided-cost rate. Self-consumption is maximized by conservative system sizing. Utility rate escalation at 3 percent annually. Federal residential credit: $0 (expired). Figures are illustrative; your in-home assessment will use your actual bills and the current EDG rate for your utility.
Indiana homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Indiana does not have a statewide solar permit fee cap. Permit requirements and fees vary by municipality and county. Major cities (Indianapolis, Fort Wayne, Evansville) typically require 2 to 6 weeks for residential solar permit approval. SolarAPP+ adoption in Indiana is limited. Contract to energization typically runs 10 to 18 weeks statewide.
Indiana homeowners should confirm their utility's EDG interconnection process before signing a solar contract. Interconnection approval can add 4 to 8 weeks beyond permit issuance.
Commercial solar in Indiana
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Indiana business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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