Solar Panels in Indiana | 2022 Cost and Incentives | SaveOnEnergy®

Indiana Solar Panels: Pricing and Incentives

How much do solar panels cost in Indiana?

home with solar panels on the roof


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Solar power in Indiana

Indiana is one of the top solar-producing states in the Midwest and has invested almost two billion into solar technology throughout the state. Indiana is an excellent place to be if you’re ready to switch to solar energy.

Whether you’re thinking about going solar for the financial or environmental benefits, SaveOnEnergy® is here to help. Below, find everything you need to know about installing solar panels in Indiana, including the perks, costs, and incentives.

Indiana solar panel cost

The cost of solar panels in Indiana runs between $11,160 to $46,50, with the average cost being around $18,600 (before credits or incentives). For most homeowners, the system should pay for itself around six to nine years after installation. The overall cost can vary based on a few factors, including the efficiency of your panels, the size of your system, and labor and installation costs.

The SaveOnEnergy marketplace helps you search, compare, sign up and save on the right energy fit for your home — all for free. If you’re interested in solar, answer a few questions to get an exact price quote from our solar advisors.

Indiana solar incentives and rebates 2022

Discover the solar rebate and incentive programs that can lower the cost of residential solar panels in Indiana.

Incentive name Details
Solar investment tax credit Homeowners who add solar panels to their primary or secondary residence in 2022 can get a 26% credit on their federal taxes by submitting IRS tax Form 5695 following these instructions. In 2023, the tax credit will be available at 22%. 
Property tax exemption This exemption reduces “the amount of assessed value a taxpayer pays on a given parcel of property.” Submit the “Geothermal, Solar, Wind or Hydroelectric Deduction Form” found here
Net metering with AES Indiana  Customers of Applied Energy Service (AES) Indiana (which acquired Indianapolis Power & Light in 2001) can reduce energy bills by selling extra energy back to the grid. Residential customers can apply with the “Level 1 Application for Interconnection” found here
Net Metering with Indiana Michigan Power Existing customers can apply for interconnection services here in order to earn net metering bill credits.  
Net Metering with Southern Indiana Power Customers can learn about and find applications for interconnection and net metering services here.
NIPSCO Feed-in-Tariff (net metering program) This NIPSCO program lets existing customers “[r]eceive payment for the amount of energy generated.”

Why choose Indiana solar power right now?

There are several benefits of going solar in Indiana, but three of the most compelling perks are fewer energy costs, independence from the public power grid, and a smaller carbon footprint.

  • Time-sensitive incentives: Right now, the federal solar credit is set to expire in 2024 unless it’s renewed by Congress. Purchasing your system before the tax credit expires could save you thousands of dollars.  
  • Lower energy costs: As energy bills continue to climb, the most attractive benefit of solar power is the ability to reduce your monthly energy expenses. When you install solar panels in Indiana, you’ll be equipped to generate energy rather than buying it from a power company. Plus, since solar panels last over 30 years, you’ll be saving money on electricity rates far into the future. 
  • Increased property value: Adding solar panels to your home can increase your property value, netting you more cash if you ever decide to sell.
  • Energy independence: Using solar panels to generate electricity for your home decreases your reliance on the public power grid. If you have a solar battery, you’ll have a backup option for keeping the power on during temporary outages.
  • Help the environment: Solar energy is gentler on the environment than traditional energy sources because it’s renewable and doesn’t emit carbon into the atmosphere when it’s produced. 

Should I buy or lease my solar panels in Indiana?

Once you’ve decided to invest in solar, you’ll need to figure out if you want to buy or lease your solar panels. Each option has its pros and cons, and the right choice will depend on your situation. 

Purchasing your panels offers more financial benefits than leasing. You can only take advantage of the federal tax credit and Indiana solar incentives if you buy or finance your solar panel system. Buying solar panels for your home will increase its resale value. Purchasing also lets you get the benefits of the solar panel warranty

Leasing still allows you to enjoy some of the benefits of solar energy without the high upfront cost. Leasing or signing a solar purchase power agreement (PPA) can be a smart choice for people on a budget or renters. However, these options will prevent residents from claiming the federal solar tax credit and net metering benefits. A solar PPA is where a developer installs solar panels on your property and sells you energy at a fixed rate. A PPA is similar to leasing but there is a difference in the way that you’re charged. 

Joining a community solar project is another option to use solar without installing panels on your property. With community solar, multiple households share solar panels, with each one receiving a portion of the energy produced.

Indiana solar panel companies

Indiana homeowners have many options when choosing a solar panel company. SaveOnEnergy can help you on your solar journey from start to finish. Explore our library of solar resources to get acquainted with the industry, including info on solar inverters, the best solar battery, and the best solar panels. We partner with trusted solar installers in your area. Some solar panel companies sell your info to multiple companies that contact you, but SaveOnEnergy does not. Work with an energy expert to create, finance, and build your personalized solar plan. Fill out this form or give us a call at 877-307-7668 to be connected with an energy expert today.

The history of solar power in Indiana

Indiana ranks 19th in the country for generating electricity from solar and has a long history of solar participation. The state has several large solar farms in operation, including the Indy Solar II project and the Troy solar project. Soon, Indiana will be home to the nation’s largest solar farm. The Mammoth Solar project is expected to be up and running by 2024.

Important solar installation factors to consider

Solar energy works by capturing sunlight and converting it into usable energy. Therefore, here are some additional considerations to account for when thinking about solar energy for your home. 

  • The state of your roof: According to Energy.gov, “solar panels perform best on south-facing roofs with a slope between 15 and 40 degrees, though other roofs may be suitable too.” Your solar company will assess the state of your roof before proceeding with installation. You may be advised to repair or replace your roof prior to solar installation or remove or trim any trees that could block sunshine.
  • The climate in your area: The more sunny days you have, the more efficient your solar system will be. For example, solar panels in sunny states like California and Hawaii will receive more sunlight than in Michigan.
  • Neighborhood rules or restrictions: If you’re part of a homeowners’ association, you may need to get approval before adding solar panels to your house. Check with your HOA before beginning the installation process.

Solar power FAQs

How much would solar cost in Indiana? Expand / Collapse Toggle

Expect to pay between $11,160 to $46,500 for a residential solar system. Indiana solar incentives and the federal tax credit can help lower the final cost of a home solar array. The cost of solar panels for your home will also depend on the size of your system, the type of solar panels (monocrystalline or polycrystalline), local permitting costs, and more.

Is solar power a good investment in Indiana? Expand / Collapse Toggle

Yes. By installing solar panels in Indiana, you can set yourself up for long-term savings. Solar panels can help keep your electricity rate stable over time and increase your property value. 

How much could I save by investing in solar? Expand / Collapse Toggle

It’s possible to save thousands of dollars on energy bills when you invest in solar. For example, the most recent data from the U.S. Energy Information Administration (EIA) shows the average electricity bill in Indiana is $134.04 per month. Depending on your energy usage and other factors, using solar energy could reduce your monthly bill to nearly zero, which could save nearly $1,600 in one year. The overall return on your investment will take longer to recoup since you will still need to account for the cost of the solar system. Most homeowners see a payback period of six to nine years for their solar systems. 

Where can I find a good solar panel installer in Indiana? Expand / Collapse Toggle

SaveOnEnergy researches and vets its solar partners to ensure we are offering high-quality solar installers to our readers. Fill out the form on this page to get connected with an energy expert who can help you create a customized solar plan for your home. 

How does solar power help the environment? Expand / Collapse Toggle

Solar power doesn’t emit carbon into the environment, which makes it better for the planet than fossil fuels. Solar energy helps reduce your reliance on these traditional energy sources and protect the planet.