IndianaSolar Incentives 2026: Tax Credits, Rebates & Net Metering
Indiana homeowners can reduce solar installation costs by up to 30% through state and federal incentives. With average monthly bills of $140 and 4.5 peak sun hours per day, the average IN homeowner saves $26,800 over 25 years.
State Solar Tax Credit
Indiana does not offer a state income tax credit specifically for residential solar. Most homeowners rely on the 30% federal Residential Clean Energy Credit as the primary up-front incentive.
Net Metering in Indiana
Indiana does not have a statewide retail-rate net metering mandate. Most utilities offer some form of buyback program at avoided-cost rates, which typically value exported solar at 25-50% of the retail rate.
For IN homeowners, this often makes battery storage more attractive — keeping your generation onsite and consuming it directly avoids the unfavorable export rate. Top utilities: Duke Energy IN, AEP, NIPSCO.
Utility Rebate Programs
3 major utilities operate in Indiana: Duke Energy IN, AEP, NIPSCO. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Indiana installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
Indiana does not currently offer a property tax exemption for solar. The added home value from a solar installation is generally included in the next assessment cycle.
Indiana does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.
How Indiana Compares to Neighboring States
Compare Indiana's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.