Indianapolis homes are served by AES Indiana, the former IPL, not Duke. Indiana ended retail net metering under SEA 309, so new solar customers are on net billing: AES credits exported power at about 3.935 cents per kWh, roughly a fifth of the 18.15 cents you pay to buy it. So Indianapolis solar pays best on the power you use yourself.
- Indiana residential power runs about 18.15 cents per kWh (EIA, May 2026), so your bill is offset at full value only for the power you use on-site.
- Your utility is AES Indiana (formerly Indianapolis Power & Light). Duke Energy Indiana serves much of the rest of the state, but not Indianapolis, so confirm AES on your bill before you compare quotes.
- Retail net metering has ended for new customers under Indiana Senate Enrolled Act 309; new solar homes go on Excess Distributed Generation (EDG) credits instead (Solar Power World).
- AES Indiana credits exports at about 3.935 cents per kWh under its Rider 16 EDG tariff, set at 125% of its wholesale energy cost and updated annually by March 1 (AES Indiana Solar FAQs). Verify the current rate before you sign.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS), so a 2026 cash or loan buyer in Indianapolis cannot claim it.
If you own a home in Indianapolis, this is how rooftop solar actually pays you back in 2026, told straight. Two things drive the math here: AES Indiana is your utility, and Indiana has replaced full retail net metering with net billing. AES credits the power you export at a small fraction of the retail rate, so the value of Indianapolis solar now comes mostly from the power you use in your own home. This page covers your exact utility, the Marion County permit, what an Indianapolis roof produces, and how to tell if it is a good fit.
Using NREL PVWatts and the current EIA rate, MySolarFY estimates a typical 7 kW rooftop system in Indianapolis (ZIP 46204) produces about 9,321 kWh a year (NREL PVWatts v8), on a solid Midwestern sun resource of about 4.66 kWh per square meter per day. That output is worth roughly $1,690 a year at Indiana’s 18.15 cents per kWh residential rate (EIA, May 2026), but you capture the full value only on the power you use on-site, since AES credits exports near 3.9 cents.
Indianapolis solar at a glance
Here is the short version of what drives your payback in Indianapolis in 2026. Every figure below is sourced, and the export-credit and tax-credit lines are the ones that changed.
| Detail | What to know (2026) |
|---|---|
| Serving utility | AES Indiana (formerly IPL). Duke Energy Indiana does not serve Indianapolis. Check your bill. |
| Residential rate | About 18.15 cents per kWh statewide (EIA, May 2026) |
| Sun resource | Solid; a 7 kW Indianapolis system (ZIP 46204) makes about 9,321 kWh a year (PVWatts) |
| Export program | Net billing (Excess Distributed Generation), not retail net metering, for new customers |
| AES export credit | About 3.935 cents per kWh (Rider 16 EDG, effective July 2024, updated annually by March 1) |
| Local permit | Marion County Department of Business and Neighborhood Services (DBNS), building and electrical permits |
| Federal credit | Section 25D ended for expenditures made after December 31, 2025 |
| Sources | AES Indiana, EIA, DSIRE |
Which utility serves your Indianapolis home?
For homes in Indianapolis and most of Marion County, your electric utility is AES Indiana, the company that was Indianapolis Power & Light (IPL) until it rebranded. AES Indiana serves more than half a million customers across Indianapolis and parts of the surrounding central Indiana counties (AES Indiana). A common mix-up worth clearing up: Duke Energy Indiana is the state’s largest utility by footprint, but it does not serve Indianapolis, so a guide written for Duke customers will not match your bill. Confirm AES Indiana on your own statement before you compare quotes, and read the statewide picture on our Indiana solar guide.
The big change: net billing replaced net metering
Indiana no longer offers full retail net metering to new solar customers, and this is the most important thing to understand about Indianapolis solar in 2026. Under Senate Enrolled Act 309, the state phased out retail-rate net metering for customers of its major investor-owned utilities, including AES Indiana, and replaced it with Excess Distributed Generation (EDG) credits (Solar Power World). Under EDG, the power you export to the grid is credited well below the retail price you pay to buy it back. AES Indiana sets its EDG rate at 125% of its average wholesale energy cost, which currently works out to about 3.935 cents per kWh under its Rider 16 tariff, updated annually by March 1 (AES Indiana Solar FAQs). For the mechanics of how export credits work, see how net metering credits your solar exports.
What this means in plain terms: compared with the roughly 18.15 cents you pay to buy power, an exported kWh is worth only about a fifth as much in Indianapolis. So the value of your system comes mostly from the power you consume on-site. Sizing to your own usage and shifting big loads, like laundry, EV charging, and running the air conditioner, into daylight hours protects far more of your savings than oversizing for export ever could. To see how offsetting your own usage lowers the bill, read how solar lowers your electricity bill, and check the full-system math on our Indiana solar cost guide.
Why batteries matter more in Indianapolis now
A home battery lets you keep the power you would otherwise sell cheap. Because an exported kWh earns about 3.9 cents while a kWh you use is worth about 18.15 cents, storing your midday surplus and using it in the evening captures roughly four to five times the value of exporting it. A battery adds up-front cost and is not right for every home, so treat it as a payback question, not a default. For a framework on running those numbers, see our guide on whether solar panels are worth it.
Indianapolis permits and interconnection
For a home inside Indianapolis and Marion County, the city-county government issues the permit. Rooftop solar is handled by the Marion County Department of Business and Neighborhood Services (DBNS) under the consolidated Indianapolis-Marion County Unigov government, which issues both a building and an electrical permit and reviews the plans, with applications filed through the Accela Citizen Access portal. A licensed installer normally pulls these permits and handles the plan set for you. Separately, AES Indiana runs the interconnection application and approves your system to connect and export, which is a different step from the city permit. A good local installer manages both the DBNS permit and the AES interconnection so you are not chasing paperwork.
Indianapolis and federal tax credits: what is gone in 2026
The 30% federal homeowner credit has ended, so do not count on it. The federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025 under the One Big Beautiful Bill Act, so an Indianapolis homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS). Indiana has no state income tax credit for residential solar, and the state’s older property-tax and sales-tax exemptions for solar are now in dispute after 2025 legislative changes, so do not assume them, and verify current terms with the Indiana Department of Revenue and your Marion County assessor. One federal credit still exists but is not yours to claim: Section 48E is a commercial credit that the business owning a leased or PPA system claims, not the homeowner. For the full timeline, see what the federal solar tax credit change means in 2026.
How you pay changes what you get
How you finance solar decides who owns the system and who claims any remaining benefit. This is the part of a quote worth reading closely.
| How you pay | Up-front cost | Who owns it | Export credits |
|---|---|---|---|
| Cash | Full system price | You | Credited to you |
| Solar loan | Little or none, financed over time | You | Credited to you |
| Lease or PPA | $0-up-front where you qualify | A third-party company | You still see bill credits; the company keeps ownership and any commercial credit |
If you own the system (cash or loan), you keep the export credits and any bill savings. If you lease or sign a PPA, a third party owns the panels, you get a lower or fixed power price with no up-front cost, and that company claims any commercial tax credit, not you. Neither path gives a 2026 Indianapolis homeowner the federal residential credit, since it ended after December 31, 2025. Solar panels are not free, and a lease or PPA is a long-term contract, so compare the total cost of each path before you decide.
How to choose a solar installer in Indianapolis
Indianapolis has a competitive installer market. Rather than chasing a “best” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Indiana electrical contractor license and the proper licensing for the Marion County DBNS permit.
- A clear workmanship and equipment warranty in writing.
- Real Indianapolis experience and help with both the DBNS permit and your AES Indiana interconnection paperwork.
- A written production estimate and a transparent quote you can compare. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. For the statewide picture, see our Indiana solar guide and the solar incentives by state hub.
See what solar programs are available in your ZIP code
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Frequently asked questions
Who is my electric utility in Indianapolis, IN? For Indianapolis and most of Marion County it is AES Indiana, the company formerly known as Indianapolis Power & Light (IPL). Duke Energy Indiana serves much of the rest of the state but not Indianapolis, so check your electric bill to confirm AES Indiana before you compare solar quotes.
Does Indianapolis still have net metering in 2026? No, not the old full-retail kind for new customers. Under Indiana Senate Enrolled Act 309, retail net metering was phased out and replaced with Excess Distributed Generation (EDG) credits. AES Indiana credits exported power at about 3.935 cents per kWh under its Rider 16 tariff, well below the roughly 18.15 cents you pay to buy power, so the value of solar comes mostly from using your own power.
What does an Indianapolis solar system produce? A typical 7 kW rooftop system in Indianapolis (ZIP 46204) produces about 9,321 kWh a year in our NREL PVWatts estimate, on a sun resource of about 4.66 kWh per square meter per day. Your real output depends on roof pitch, direction, and shade, so get a written production estimate for your specific roof.
Who issues the solar permit in Indianapolis? For homes in Indianapolis and Marion County, the Marion County Department of Business and Neighborhood Services (DBNS) issues a building and an electrical permit and reviews the plans, with applications filed through the Accela Citizen Access portal. AES Indiana separately runs the interconnection approval. A licensed installer normally handles both.
Is there still a solar tax credit in Indiana in 2026? The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025, so a 2026 cash or loan buyer cannot claim it. Indiana has no state income tax credit for solar, and the state’s older property-tax and sales-tax exemptions for solar are in dispute after 2025 legislative changes, so verify current terms with the Indiana Department of Revenue and your Marion County assessor before you decide.
Is solar worth it in Indianapolis now that exports pay less? It can be. Every kWh you use yourself offsets power at about 18.15 cents, which is a solid retail rate. The weak spot is exported power, credited near 3.9 cents, so payback depends on sizing to your own usage and, for many homes, adding a battery. Run your own numbers with a written production estimate before you commit.
Reviewed by the MySolarFY team. Figures were verified against the linked AES Indiana (Solar FAQs and Rider 16 EDG tariff), EIA, NREL PVWatts, and IRS sources as of August 2026. Export credits, incentives, and net-billing rules change and are reset periodically by the Indiana Utility Regulatory Commission and AES Indiana, so confirm current terms with each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and 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. 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, incentives, export credits, and rates vary and are not guaranteed. See our full disclaimer.
