A worked example: 8 kW in Indiana
An 8 kW system — about 19 × 425-watt panels — at Indiana's assumed installed cost of $2.45–$3.20 per watt runs roughly $19,600–$25,600 before incentives. At about 1,280 kWh of production per installed kW, it would generate around 10,240 kWh per year. Valuing self-consumed electricity at the assumed $0.15/kWh retail rate and exports conservatively, first-year savings land near $1,266 — a simple payback of roughly 15–20 years.
There is no federal tax credit in that math: the Section 25D residential credit ended for systems installed after December 31, 2025. State or utility incentives, where they exist, would shorten payback from here.
Net metering in Indiana
Indiana phased out retail net metering for new customers in 2022. Investor-owned utilities now credit exports at roughly 1.25× wholesale (an "excess distributed generation" rate), well below retail.
Indiana solar incentives
Indiana offers property and sales tax exemptions for solar but no state tax credit or rebate.
What changes a Indiana solar quote?
Equipment, roof condition, electrical upgrades, permitting, labor, system size, batteries and financing can all change the installed price. Savings also depend on the specific utility rate, how much solar electricity the home uses directly, and what the utility pays for exports.
Frequently asked questions
How much do solar panels cost in Indiana?
Using an assumed installed cost of $2.45–$3.20 per watt, a typical 8 kW home system in Indiana costs roughly $19,600–$25,600 before incentives. Smaller and larger systems scale roughly with size, though small systems cost more per watt.
Is solar worth it in Indiana?
With Indiana electricity around $0.15/kWh and production around 1,280 kWh per installed kW per year, an 8 kW system could save roughly $1,266 in year one, for a simple payback of about 15–20 years with no federal credit. Whether that is "worth it" depends on your rate plan, export compensation, roof, and how long you plan to stay in the home.
Does Indiana have net metering?
Indiana phased out retail net metering for new customers in 2022. Investor-owned utilities now credit exports at roughly 1.25× wholesale (an "excess distributed generation" rate), well below retail.
What solar incentives does Indiana offer in 2026?
Indiana offers property and sales tax exemptions for solar but no state tax credit or rebate. Note that the federal Section 25D residential credit ended for systems installed after December 31, 2025, so state, local and utility programs are now the main incentives for purchased systems.
Is there still a federal solar tax credit in Indiana?
No — the 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Leased or PPA systems may still benefit indirectly because the system owner can claim the commercial 48E credit through 2027.
Use this as a starting point
This page provides broad state assumptions, not a current market survey or binding quote. Before purchasing, verify applicable incentives, utility rules, installer licensing, warranties and financing terms.
Where these numbers come from
State assumptions are informed by public data and reviewed periodically (September 2026):