Indiana now offers great solar power incentives for Indiana solar energy homeowners and businesses. Due to these state and federal incentives, there are now many options for homeowners and businesses to save money utilizing Indiana’s net metering policy.
Indiana Solar Incentives and Rebates
Indiana state laws allow homeowners to see the following benefits of solar power:
1. The Federal Solar Tax Credit (ITC)
The greatest benefit of solar is the federal tax incentive for Indiana homeowners! This federal solar incentive is called the Investment Tax Credit (ITC). This allows for a drastic reduction in the cost of your solar energy system by 26 percent. This Indiana solar incentive is 26% for installations by December 31, 2021, and reduces to 22% in 2023. The ITC only applies to those who purchase their solar energy systems, not lease. Purchasing is either done with a cash purchase or solar financed loan that often offsets your current electric bill, thus saving you money), and you must have enough income for the tax credit to be meaningful.
2. Renewable Energy Property Tax Exemption
New solar energy systems that are installed in Indiana are exempt from property taxes. This means that the added value to your property from your solar installation won’t be attributed to your property if assessed for taxes. This is due to the Indiana Renewable Energy Property Tax Exemption, leaving Indiana residents with a solar advantage where you don’t have to worry about your solar panel system increasing your property taxes.
3. Sales Tax Exemption
When converting to solar energy through a purchase, instead of a lease option, Indiana homeowners are almost always exempt from sales tax under Indiana’s sales tax exemption for equipment that generates electricity. According to Indiana state law, there is no payment of sales tax on solar panels, equipment, racking, and inverters. This is because the equipment is directly responsible for the production of the electricity you will generate.
4. NIPSCO Feed-In Tariff
Indiana areas served by NIPSCO as their utility can take part in the NIPSCO Feed-In Tariff, a unique program allowing the sale of excess credit for the solar power your panels generate. For solar systems installed up to 10 kilowatts in size, homeowners can either choose to sell all the electricity generated back to NIPSCO at a rate of $0.15 per kilowatt-hour (kWh), OR you can declare a kWh allotment to sell back to NIPSCO at this rate, while using the rest for yourself.
With electric rates from NIPSCO at $0.12/kWh, this is an excellent opportunity to generate additional income through this program! Visit NIPSCO’s Feed-in Tariff Website page for more information on the NIPSCO Feed-In Tariff policies.
Indiana Net Metering Policy:
Indiana solar energy systems that are sized under 1 megawatt (MW) are able to take part in what’s called ‘Net Metering’. Net Metering in Indiana allows homeowners to send the extra electricity produced by your solar energy system back into your utility company’s grid. In turn, you receive credits toward your electric bill. If your solar panels are not producing all the electricity required to fully power your property, the extra credits you have stored up over time will be used to power your home. This way, you do not have to pay the utility company for electricity.
Increase In Home Resale Value
With new verified research coming out over the years, it is now proven that solar panels can increase the value of your home on the real estate market.
According to a study by the University of California, Berkely, numbers do vary based on location, city, and state, but studies have concluded that for every 1 kilowatt of solar panels installed on your property, the value of your home can increase anywhere between $4,000 – $6,000. For example, the average system size in Illinois is 7 kilowatts. This means your home can increase in value anywhere between $28,000 and $42,000 in resale value.
How Many Solar Panels Does My Home Need?
Each home’s energy needs are calculated off of past utility bills. For the most accurate assessment, we take the most recent 12 months of your power usage, and input them into our Sunlight software that takes into account sun hours, roof space, panel type, usage and more. The average system size is 7 kilowatts, which can often result in anywhere from 16-40 solar panels needed, depending on the type of panel and other factors.
Tron Solar provides these designs free of charge. Our experts will take care of all calculations for you and are happy to walk you through exactly what your home’s design and savings will look like with solar.
Does Indiana Get Enough Sun For Solar?
The answer? Yes, they do. Solar panels only need one thing to produce energy, and that’s light. Panels don’t use heat from the sun, but are built to produce the majority of your annual energy needs during the summer months, which you’ll store as credits to use throughout the rest of the year until Net Metering zero’s out your credits annually. Solar panels are photovoltaic (PV) panels that are sensitive to rays of light. When the panels get hit with light, they generate a direct electric current (DC), which the solar converter then converts into alternating current (AC) so your home, property, or business can use it. Indiana ranks 8th in the U.S. for solar panel production because as long as light hits the panels, you’ll create the energy your home needs. This include overcast days where there’s still light available for the panels. The same way you wear sunscreen on a cloudy day in the summer is the same reason panels still generate electricity on cloudy days – the UV rays are still coming through. Even in winter months, the light reflecting off of the snow helps the panels generate electricity.
Naturally, in any state in the U.S., there are days when your panel’s efficiencies will decrease — and of course panels don’t generate electricity in the night time, but solar energy systems can be equipped with batteries to store up power for use during periods when efficiency declines. If there is no battery, Net Metering can suffice for your stored up credits to use throughout the year. Indiana is a great state for solar!
I was surprised by how easy it was. They answered every question I had. Eventually the solar payment will go away and I’m okay to be left paying $16 per month for electricity.
Everything proceeded ahead at lightning speed with great communication along the way. They also took care of all the rebate requirements as well, making the entire process very simple and quick.
The entire process, from purchasing Tron Solar Panels to installation, has been seamless. All Tron employees I’ve worked with have been incredibly friendly, knowledgeable, and professional.
Dealt with Adrien and Andy and the communication and process was awesome. A lot easier than I expected, and also found out they offered a lot more than solar panels.