Is solar worth it in Indiana?

Solar in Indiana is viable but timing matters. Net metering is being phased out, so acting sooner locks in better long-term terms. Property tax exemption and rising Duke/AES rates help. Expect 10-13 year payback.

How much does solar cost in Indiana?

An 8 kW solar system in Indiana costs $20,000-$24,800. Without significant state incentives, the full system cost applies, though property tax exemption provides long-term savings.

What solar incentives are available in Indiana?

Indiana offers a 100% property tax exemption for solar. Net metering is still available but being phased out. No state tax credit exists. The federal 25D credit ended, but PPA/Lease still gets 30% through 2027.

Is Indiana phasing out net metering?

Yes, Indiana is phasing out 1:1 net metering. Existing customers may keep their terms through grandfathering. New customers may receive reduced export rates. Installing sooner can lock in better terms.

Does Indiana have a solar property tax exemption?

Many states offer solar property tax exemptions, meaning the added home value from solar panels won't increase your property taxes. Check your state's specific exemption details, as coverage varies from full to partial exemption.

How many solar installers operate in Indiana?

The number of solar installers varies by market size. Larger states have dozens of options. Always get 3-5 quotes from different installers, comparing identical equipment, to find the best price and service quality in your area.

Indiana Solar Guide: Net Metering, Costs & Incentives

Quick Answer

Indiana offers property tax exemptions and net metering for solar, though net metering is being phased out. Acting sooner can lock in better long-term terms. With 4.4 peak sun hours and rising Duke Energy and AES Indiana rates, expect 10-13 year payback periods. Best for homeowners planning to stay long-term.

Indiana Solar Overview

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From my experience:

Indiana is a "move now" situation. Net metering is being phased out, and once it is gone, the economics get a lot harder. If you are thinking about solar in Indiana, getting in while you can still lock in net metering terms is smart. Duke Energy and AES rates keep climbing, which helps the math. The property tax exemption is nice too.

Indiana isn't a solar leader, but property tax exemptions and net metering requirements make solar work for many homeowners. With Duke Energy and AES Indiana rates rising, solar is becoming more attractive in the Hoosier State.

[Editor's Note, Jan 2026]:Indiana net metering phase-out is ongoing. Check current grandfathering provisions and export rate structures with your utility. Acting sooner may lock in better terms.

Indiana Solar Facts

Indiana averages 4.4 peak sun hours daily—typical for the Midwest. The state requires net metering for investor-owned utilities and exempts solar from property taxes. Payback typically runs 10-13 years. (Source: NREL Solar Resource Data)

Why Indiana Can Work for Solar

Net metering: Required for IOUs until phase-out
Property tax exemption: Solar value excluded
Rising rates: Duke and AES rates trending up
Moderate sunshine: 4.4 peak sun hours average
Competitive pricing: Growing installer market

State Incentives

Indiana Programs

Property tax exemption: 100% of solar value excluded
Net metering: Required, but being phased out
No state tax credit: Indiana doesn't offer state credit
Utility programs: Check for current rebates

Federal Options

Purchased systems: No federal credit (25D ended 2025)
PPA/Lease: Still benefits from 30% credit through 2027

Net Metering

Indiana Policy

Current status: Net metering being phased out
Grandfathering: Existing customers may keep net metering
New customers: May receive reduced export rates
Action: Installing sooner locks in better rates

Net Metering Phase-Out

Indiana is phasing out 1:1 net metering. New solar customers may receive reduced export credits. If you're considering solar in Indiana, acting sooner may lock in better long-term economics. (Source: utility tariff filings and DSIRE Database)

Solar Costs

System Size	Gross Cost	After Incentives
6 kW	$15,000-18,600	$15,000-18,600
8 kW	$20,000-24,800	$20,000-24,800
10 kW	$25,000-31,000	$25,000-31,000

Major Utilities

Duke Energy Indiana

Service area: Central and southern Indiana
Net metering: Subject to phase-out schedule
Programs: Check current rebate availability

AES Indiana (formerly IPL)

Service area: Indianapolis metro
Net metering: Subject to phase-out schedule
Rates: Among higher in state

Production Estimates

Annual production: 1,200-1,350 kWh per kW installed
8 kW system: ~9,600-10,800 kWh/year
Best months: May-August

The Bottom Line

Indiana solar is viable but timing matters. The net metering phase-out means acting sooner may provide better long-term economics. Property tax exemptions help, but expect 10-13 year payback.

Questions About Indiana Solar?

Our AI can help you understand the net metering phase-out and your best options.

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Written by

Lincoln Panasy

Founder, SolarQuest AI • Solar Expert Since 2018

Lincoln created SolarQuest AI after seeing too many homeowners get burned by pushy solar salespeople. With 8 years of experience in the solar industry since 2018, he writes and reviews all content on this site—combining his real-world expertise with AI tools to deliver accurate, unbiased solar education.

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