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As the demand for clean, renewable energy grows, many Hoosiers are turning to solar power to lower their energy bills and reduce their environmental impact. While Indiana may not be as sunny as some other states, it still offers a range of solar incentives designed to make installing solar panels more affordable and accessible. From net metering policies to federal tax credits, these incentives can significantly reduce the upfront costs and maximize the long-term savings of going solar in Indiana. In this breakdown, we’ll explore the key solar incentives available to Indiana residents and how they can benefit from them.
The Residential Clean Energy Credit
The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.
To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.
Renewable Energy Property Tax Exemption
If the value of your Indiana home increases after installing a solar power system (which is typically the case), your state property taxes won’t go up because of the installation. However, this doesn’t exempt you from paying state property taxes altogether.
NIPSCO Feed-In Tariff
NIPSCO is offering a feed-in tariff program for customers who generate electricity from solar, wind, or biomass. All NIPSCO electric customers in good standing are eligible for the program. Facilities must be between 3 kilowatts (kW) and 1 megawatt (MW), must be insured, and must meet interconnection standards. Payments are made to the customer on a monthly basis. Applications are available on the web site, as well as engineering standards and tariff information.
There is a non-refundable processing fee of $25 plus $1 per kW to be included with the application (i.e. the processing fee for a 100kW project would be $125).
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Net Metering
Indiana no longer offers a statewide net metering program for new customers.
Those who installed systems before 2018 will receive net metering credits until 2047.
A system installed between the start of 2018 and the end of net metering for new customers would receive full net metering until July 1, 2032.
Solar for All
The Community Power Coalition (CPC) is launching its “Powering America Together” Solar for All (SFA) program in collaboration with the U.S. Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC is comprised of experienced community solar professionals who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers.
In Indiana, the SFA program, known as SFA Indiana (SFAI), is a joint effort between municipal governments, community organizations in cities like Fort Wayne, Gary, Indianapolis, and Columbus, as well as six statewide entities. Together, they aim to solarize low-income households and transform Indiana’s solar market. The initiative focuses on introducing new financial products and incentives that promote solar adoption among low-income residents and encourage solar integration in affordable housing projects. The coalition is also working with utility companies and aligning with workforce development initiatives to foster a grassroots-driven transition to solar energy across the state.
Meanwhile, the Industrial Heartland Solar Coalition, based in Ohio, is uniting 31 communities across eight states, from the Midwest to the rustbelt. Led by Growth Opportunity Partners (Growth Opps), this coalition is dedicated to a just and clean energy transition for America’s industrial heartland communities. Its Solar for All program, locally implemented by 18 coalition members, aims to deliver energy savings, reduce greenhouse gas emissions, and support solar workforce development. By leveraging tax credits and SFA grant funds, the coalition targets low- and moderate-income households to install residential rooftop solar and more.
Disclaimer
The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.
