Solar Incentives in Indiana (2026)
Indiana has phased out traditional net metering, but rising rates and a sales tax exemption keep solar viable. Here are Indiana's 2026 solar incentives, electricity rates, net metering rules and typical payback — plus tools to run your own numbers.
Indiana solar at a glance
- Avg electricity rate~16¢/kWh
- Typical payback10–13 years
- SunshineModerate
- Net meteringExcess generation credit (post-net-metering)
- Federal tax credit30% (2026)
- 7 kW net cost*~$14,700
*National-average $3.00/W system after the 30% federal credit, before Indiana state incentives.
Is solar worth it in Indiana?
Indiana has phased out traditional net metering, but rising rates and a sales tax exemption keep solar viable. At an average residential rate of about ~16¢/kWh, every kilowatt-hour your panels produce is a kilowatt-hour you don't buy from the utility — and that avoided cost is what drives your payback. Combined with moderate sunshine, a standard 7 kW system in Indiana generally pays for itself in 10–13 years after the 30% federal credit, then delivers a decade or more of nearly free power.
To see your own number rather than this state average, plug your actual electric bill into the Solar Payback Calculator. If you're weighing how to pay, the Financing Calculator compares cash, loan and lease side by side.
Indiana solar incentives in 2026
Beyond the federal 30% Residential Clean Energy Credit, which applies everywhere, Indiana offers:
- Sales tax exemption on residential solar equipment
- Excess generation credited at a rate above wholesale (post-NEM rules)
- Property tax exemption on the added value of a solar system
State programs change frequently. Always confirm current details and eligibility on the DSIRE database and with a licensed local installer before you sign anything.
Net metering in Indiana
Indiana uses Excess generation credit (post-net-metering). Net metering is the second-biggest factor in your solar economics after your electricity rate, because it determines how much credit you earn for the excess power your panels send back to the grid. Generous, full-retail net metering shortens payback; reduced export rates lengthen it and increase the value of pairing your system with a home battery.