As of August 2026, solar can still pay in Indiana, but the math changed. You pay about 18 cents per kWh, near the national average. Indiana ended 1:1 retail net metering for new customers under SEA 309, so exported power now earns a lower credit. That makes self-consumption and batteries matter. The 30% federal homeowner credit ended after December 31, 2025.
- Indiana residential power runs about 18 cents per kWh, near the national average of about 18.4 cents (EIA Electric Power Monthly, Table 5.6.A, May 2026).
- Indiana ended retail net metering for new customers under Senate Enrolled Act 309 (2017); new rooftop solar exports are now paid at the utility’s excess distributed generation (EDG) rate, roughly a wholesale price plus a 25% premium, which is well below the retail rate (DSIRE Indiana).
- Because exports earn less, using your own solar power on-site, and adding a battery, matter more in Indiana than in a full net-metering state.
- Indiana offers a renewable energy property-tax deduction: the value solar adds to your home is excluded from your property assessment when you file for it (DSIRE Indiana).
- Indiana has no state solar sales-tax exemption and no state solar income-tax credit in 2026 (DSIRE Indiana).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
Indiana homeowners pay about 18 cents per kWh for electricity (EIA Electric Power Monthly, Table 5.6.A, May 2026), close to the national average of about 18.4 cents. Rooftop solar can still lower an Indiana bill, but this state asks you to plan differently than a place with full net metering, because Indiana ended 1:1 retail net metering for new customers in 2022. This page covers what Indiana power actually costs in 2026, why the net-metering change matters, the incentives that remain, and how to tell if your home is a good fit. For the full dated dashboard of rates, production, and payback, see our Solar by State guides. We tell you the honest version, including where the numbers do not favor solar.
Why the Indiana story is different: net metering ended
Indiana no longer offers full retail net metering to new solar customers. Under Senate Enrolled Act 309, passed in 2017, Indiana’s investor-owned utilities phased out 1:1 retail net metering, with the transition ending by July 1, 2022 (or once a utility hit a 1.5% cap on its peak load), whichever came first (DSIRE Indiana). A homeowner who installs solar today is placed on the replacement tariff, called excess distributed generation, or EDG.
Under EDG, the power you use in your home the moment your panels make it is worth the full retail rate, because it directly replaces power you would have bought. But the surplus you export to the grid is credited at a much lower rate: roughly the utility’s average wholesale cost of power plus a 25% premium, not the retail rate you pay to buy electricity (DSIRE Indiana). Each utility sets and updates its own EDG rate, so confirm the current figure with your provider before you model savings. To understand how export credits work in general, read how net metering credits your solar exports.
What this means in plain terms: in Indiana, self-consumption is king. The more of your own solar you use as it is produced, and the less you export for a low credit, the better your economics. That is why home batteries, load shifting (running big appliances during the day), and right-sizing a system to your own usage matter more here than in a full net-metering state. A battery lets you store midday solar and use it at night at the retail value instead of exporting it cheaply. To see how on-site solar lowers a monthly bill, read how solar lowers your electricity bill.
What a typical Indiana system produces, and what it is worth
Your production drives your savings, so start with a realistic output estimate. Estimate your own roof with NREL’s free PVWatts calculator; actual output depends on your roof’s pitch, orientation, and shading. According to MySolarFY’s analysis (August 2026), a typical 6 kW rooftop system in Indianapolis (ZIP 46204) produces about 7,990 kWh a year (NREL PVWatts). At Indiana’s roughly 18.2 cents per kWh (EIA), that electricity is worth about $1,450 a year, but only the share you use on-site earns that full retail value. Because Indiana credits exported power at the lower EDG rate, your actual savings depend on how much of your own production you consume, which is the whole reason self-consumption and batteries matter here.
| Input or result | Estimate (6 kW system, Indianapolis) |
|---|---|
| Estimated production | About 7,990 kWh/year (NREL PVWatts, ZIP 46204) |
| Electricity rate | About 18.2 cents/kWh (EIA, May 2026) |
| Full retail value of that output | About $1,450/year if all of it offsets your own usage |
| Value of exported surplus | Credited at the lower EDG rate (wholesale plus ~25%), not retail |
| What raises your real savings | Self-consumption, load shifting, and a battery to avoid cheap exports |
These are modeled estimates, not a quote. Your roof, usage pattern, utility, and whether you add storage all move the number. For the full price tag and payback math, see the financial case for whether solar panels are worth it, or run the state numbers in Indiana solar panel cost and payback.
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Indiana solar incentives at a glance
Indiana keeps its incentives lean. There is no state solar tax credit and no solar sales-tax exemption, and net metering is gone for new customers. What remains is a property-tax break plus the value of the power you offset. Here is the honest 2026 picture.
| Incentive | What it does | 2026 value and status | Source |
|---|---|---|---|
| Excess distributed generation (EDG) | Bill credit for the surplus power you export | Wholesale rate plus ~25%, well below retail; replaced net metering for new customers under SEA 309. Verify the current rate with your utility | DSIRE |
| Property-tax deduction | Excludes solar’s added value from your property assessment | Active; you must file the renewable energy deduction with your county assessor | DSIRE |
| State sales-tax exemption | Would waive sales tax on equipment | Indiana has none for residential solar in 2026 | DSIRE |
| State income-tax credit | Would cut your state income tax | Indiana has no state solar income-tax credit in 2026 | DSIRE |
| Federal residential (Section 25D) | Was a 30% homeowner credit | Ended for expenditures made after December 31, 2025; no longer available to homeowners | IRS |
The honest headline: Indiana is a leaner incentive state than the Northeast. There is no SREC market, no state credit, and no 1:1 net metering for new systems. The case for solar here rests on offsetting an 18-cent retail rate with power you use yourself, plus the property-tax deduction. Confirm every figure with the linked source and your own utility, and ask a tax professional about your situation. MySolarFY does not provide tax advice.
Which utility serves you, and why it matters
Your EDG export rate, interconnection rules, and any rate design change all come from your utility, not the state, so the first step is knowing who serves your address. Indiana’s five major investor-owned electric utilities are:
- Duke Energy Indiana, the state’s largest electric utility, serving much of central and southern Indiana.
- AES Indiana (formerly Indianapolis Power & Light), serving the Indianapolis metro.
- NIPSCO (Northern Indiana Public Service Company), serving northern Indiana.
- CenterPoint Energy Indiana (formerly Vectren), serving the southwest around Evansville.
- Indiana Michigan Power (I&M), serving parts of the northeast around Fort Wayne.
Each utility administers its own EDG tariff and net-billing terms, and those rates are updated over time, so confirm your utility’s current export credit and interconnection process before you sign anything. If Duke Energy serves you, see how Duke Energy Indiana credits solar and net billing, and use our questions to ask a solar installer to make sure a quote reflects your actual utility’s rules.
How you pay changes what solar is worth
The way you finance solar decides who owns the system and who keeps its benefits. This is the most misunderstood part of an Indiana solar quote, especially now that exports earn less.
| How you pay | Up-front cost | Who owns the system | Who keeps the benefits |
|---|---|---|---|
| Cash | Full system price | You | You keep the bill savings, the EDG credits, and the property-tax deduction |
| Solar loan | Little or none, financed over time | You | Same as cash; you own the system and its benefits |
| Lease or PPA | $0-up-front where you qualify | A third-party company | You get a lower or fixed power price; the company owns the panels and any tax benefit |
If you own the system (cash or loan), you keep the bill savings and can apply for the property-tax deduction. If you lease or sign a PPA, the company that owns the panels keeps any tax benefit, and your gain is a lower or fixed power price with no up-front cost. Lease and PPA terms typically run 20 to 25 years and may include an annual price escalator, so read the contract. Neither path gives a 2026 Indiana homeowner the federal residential credit, because that credit ended after December 31, 2025.
What changed federally, and what it means for Indiana
The federal homeowner credit is gone. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so an Indiana homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ). For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit). For a leased system in Indiana you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to choose a solar installer in Indiana
Because Indiana’s economics reward self-consumption and storage, a good installer should size your system to your usage and model your real EDG export rate, not promise full net-metering savings that no longer exist. Screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper Indiana contractor and electrical licensing, plus pulled permits and a passed inspection.
- A clear workmanship and equipment warranty in writing.
- A written production estimate that uses your actual utility’s current EDG rate, not a full retail net-metering assumption.
- Real Indiana experience, verifiable reviews, and help with your utility’s interconnection and the property-tax deduction filing.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. To learn how we vet and match, see how MySolarFY works, and for our sourcing see our data and methodology.
Solar in nearby states
Rules and rates change at the state line. If you are comparing across the Midwest, see our guides for Ohio solar, Illinois solar, and Michigan solar, each with its own net-metering and incentive picture. All of them sit under our Solar by State hub.
Closer to home, we run the local cost and utility numbers city by city: see Indianapolis solar, Fort Wayne solar, and Hammond solar for the production and rate math where you live.
Frequently asked questions
Does Indiana have net metering in 2026? Not for new customers. Indiana phased out 1:1 retail net metering under Senate Enrolled Act 309, and the transition ended by July 1, 2022. New solar customers are placed on the excess distributed generation (EDG) tariff, where power you export is credited at roughly the utility’s wholesale rate plus about 25%, well below the retail rate you pay to buy electricity. Customers who connected under the old rules before the cutoff are generally grandfathered for a set period. Because exports earn less, using your own solar on-site is what drives Indiana savings.
What solar incentives does Indiana offer? Indiana keeps it lean. The main state benefit is a renewable energy property-tax deduction that excludes the value solar adds to your home from your property assessment when you file for it with your county assessor. Indiana has no SREC market, no state solar income-tax credit, and no solar sales-tax exemption in 2026. The 30% federal homeowner credit ended after December 31, 2025, so most of the case for Indiana solar now rests on offsetting your own 18-cent retail power.
Is solar still worth it in Indiana without net metering? It can be, but the math is tighter than in a full net-metering state, and it depends on your usage. Because exported power earns the lower EDG rate, the value comes from using your solar as you produce it. Homes that use a lot of power during daylight hours, or that add a battery to store midday solar for evening use, capture the most. A good installer should size your system to your usage and model your real utility export rate before you commit.
Do batteries make more sense in Indiana? They often help more here than in a full net-metering state. Without 1:1 export credits, storing your midday surplus in a battery and using it at night keeps that energy at its full retail value instead of exporting it for a low EDG credit. Whether a battery pays for itself still depends on its cost, your usage pattern, and your utility’s rates, so treat it as a case-by-case decision, not an automatic yes.
Which utility do I deal with for solar in Indiana? One of the state’s five major investor-owned utilities: Duke Energy Indiana, AES Indiana (formerly Indianapolis Power & Light), NIPSCO, CenterPoint Energy Indiana (formerly Vectren), or Indiana Michigan Power. Each sets its own EDG export rate and interconnection process, and those terms change over time, so confirm the current numbers with your specific utility before you model savings.
Did the federal solar tax credit end? Yes. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so an Indiana homeowner who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL PVWatts, DSIRE, and IRS sources as of August 2026; export credits, incentive rules, and utility tariffs change, so confirm current terms with each source and your utility before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the tax benefits go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, export credits, and rates vary by utility and are not guaranteed. See our full disclaimer.
