Solar Incentives and Rebates in Indiana

Peak Sun Hours (PSH): 2.5-4
Cost of Grid Power: $0.12/kWh
Number Of Installations: 4,268

What’s the Cost of Solar in Indiana?

Cost of Grid Power

Indiana's electricity prices average $0.12/kWh, below the national average of $0.14/kWh and roughly the same as the year prior.

Cost of a Solar Install

The average cost of a 5kW (equivalent to saving almost 100 trees a year) solar power system starts around $11,000 in Indiana. That system would pay for itself through energy savings within 5.5-7 years. System life can span well over 25 years, and savings will improve with inflation.

Indiana Solar Farms

According to the Indiana Office of Utility Consumer Counselor (OUCC), Indianapolis International Airport now boasts the largest airport-based solar farm in North America. In partnership with Duke Energy, OUCC has received IURC approval of purchased power agreements with solar facilities in Clay, Sullivan, Howard, and Vigo counties.

Indiana Solar Net Metering

In 2017 Indiana passed Senate Bill 309, which will gradually step down the net metering rate for new system owners from the retail to the wholesale rate. Basically if you're thinking about going solar in Indiana, time is of the essence. Since Indiana is one of just seven states with a renewable portfolio standard (RPS) that is voluntary, it's fair to expect a low chance of solar incentives improving in the state in the near future.

Indiana Solar Incentives

Data from DSIRE. For more info visit:

Name Implementing Sector Program Type Administrator DSIRE ID
Energy Education and Demonstration Grant Program State Grant Program Indiana Office of Energy Development 55
DSM Programs Incorporating Renewables State Other Policy 278
Net Metering State Net Metering 342
Interconnection Standards State Interconnection 1052
Energy Efficient State Building Initiative State Energy Standards for Public Buildings 3045
Income Tax Deduction for Solar-Powered Roof Vents or Fans State Personal Tax Deduction Department of Revenue 3974
Sales and Use Tax Exemption for Electrical Generating Equipment State Sales Tax Incentive Indiana Department of Revenue 5106
Indianapolis Power & Light - Builder Energy Efficiency Rebate Program Utility Rebate Program Indianapolis Power & Light 5232
Community Conservation Challenge State Grant Program Indiana Office of Energy Development 5318
NIPSCO Custom Commercial and Industrial Gas and Electric Incentive Program Utility Rebate Program Lockheed Martin 5326
NIPSCO - Feed-In Tariff Utility Feed-in Tariff 5672
NIPSCO (Gas & Electric) Small Business Direct Install Program Utility Grant Program 5726
NIPSCO (Gas & Electric) - Commercial & Industrial Energy Efficiency Program Utility Rebate Program 5727
LaGrange County REMC - Business Energy Efficiency Rebate Program Utility Rebate Program 5731
LaGrange County REMC - Business New Construction Energy Efficiency Rebate Program Utility Rebate Program 5732
Income Tax Deduction for the Installation of Building Insulation State Personal Tax Deduction 5844
Vectren Energy - Online Energy Audit Utility Energy Analysis Vectren Energy 15110
Indianapolis Power & Light - PowerView Other Energy Analysis Indianapolis Power & Light 17129
Indiana Manufacturers Association - Energy Consulting and Educational Services Other Energy Analysis Indiana Manufacturers Association 17132
Indiana Small Business Development Center - Market Research Other Energy Analysis Indiana Small Business Development Center 17133
South Central Indiana REMC - Efficiency Utility Energy Analysis South Central Indiana REMC 18809
Crawfordsville Electric Light & Power - Energy Depot for Businesses Other Energy Analysis Crawfordsville Electric Light & Power 19587
Richmond Power & Light - Infrared Imaging/Ultrasonic Detection Other Energy Analysis Richmond Power & Light 20097
Seventhwave (formerly Energy Center of Wisconsin) - Energy Consulting Non-Profit Energy Analysis Seventhwave (formerly Energy Center of Wisconsin) 21564
Seventhwave (formerly Energy Center of Wisconsin) - Back of the Envelope Calculator Non-Profit Energy Analysis Seventhwave (formerly Energy Center of Wisconsin) 21565
Midwest Energy Efficiency Alliance - Midwest Industrial Initiative Non-Profit Energy Analysis Midwest Energy Efficiency Alliance 21626
Midwest Energy Efficiency Alliance - Building Operator Certification Non-Profit Training and Information Midwest Energy Efficiency Alliance (MEEA) 21642
South Central Indiana REMC - Free Energy Audit Program State Energy Analysis 22030


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