Solar Panels in Indiana2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in Indiana.
$17,000–$28,000
Avg system cost
$11,900–$19,600
After 30% ITC
4.4 hrs/day
Peak sun hours
$0.133/kWh
Avg rate
Is Solar Worth It in Indiana?
Based on a home with a $150/month electric bill in Indiana
Est. system size
7.8 kW
Gross cost
$22,483
Federal tax credit
−$6,745
Net cost
$15,738
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 8.7 years — then 11 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
Indiana Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
Indiana State
State Incentive
Net metering + some utility rebates available
Additional Indiana Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: No exemption — solar adds to assessed value
Sales Tax Exemption: Sales tax applies to solar equipment purchase
Solar Installation Cost in Indiana by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $982,551/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,375,571/yr |
| 9 kW | $22,091,040 | $15,463,728 | $1,768,591/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,358,122/yr |
* Costs based on $2.90/W national average. Indiana installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in Indiana
How much do solar panels cost in Indiana?
Solar installation in Indiana typically costs $17,000–$28,000 before incentives. After the 30% federal tax credit, most homeowners pay $11,900–$19,600 net.
Is solar worth it in Indiana?
Yes — Indiana homeowners benefit from 4.4 average peak sun hours per day. The 30% federal ITC combined with net metering + some utility rebates available make the financial case strong for most homeowners.
What state incentives are available for solar in Indiana?
Net metering + some utility rebates available. On top of state incentives, all Indiana homeowners qualify for the federal 30% Investment Tax Credit (ITC).
How long is the payback period for solar in Indiana?
Based on Indiana's average electricity rate of $0.133/kWh and 4.4 peak sun hours, most homeowners see payback in 8.7–12 years. Systems then produce free electricity for 15–20+ more years.
Does Indiana have net metering?
Yes — Indiana has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.