Indiana solar panels: The complete guide in 2025
Data updated Jul 15, 2025
Looking to go solar in Indiana? On average, you'll need to install a 12.61 kW solar panel system to cover your electric bill—which costs about $25,357 after the federal tax credit.
Cost for an average system in Indiana
| Out of pocket cost, cash | $36,224 |
| Federal tax credit (30%) | - $10,867 |
| Price post tax credit | $25,357 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $32,530 | 13 Years | 87% |
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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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 12.61 kW solar panel system to cover their electricity needs, which comes out to $36,224 before incentives. Prices range from $30,790 to $41,658, but after the federal tax credit, that drops by 30%.
Over 16,000 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 13.25 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
Solar panel systems are expensive upfront purchases, but there are a few different financing options to make that initial cost more manageable.
Cash purchase: You pay for your entire system upfront. This provides the best long-term savings.
Solar loan: Enables you to maintain ownership of your system while owing little to no money upfront. When it comes to solar loans, subsidized clean energy loans through local incentive programs are usually your best bet. The next best options include a home equity loan or a personal loan—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). In general, these provide the lowest savings and garner the most negative press about solar. If you go this route, remember to read the fine print so you’re not trapped in a contract for longer than you intend.
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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) | $10,867 | 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 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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