Indiana Solar Incentives, Cost & Policy (2026)
Written by Aditya Patil · Last updated 2026-09-24
Going solar in Indiana requires navigating a changing policy landscape. Following the end of statewide retail-rate net metering, maximizing your solar investment in the Hoosier state now relies heavily on self-consumption and battery storage.
$164
Avg. monthly bill
17.51¢/kWh
Avg. electricity rate
+3.6%
Year-over-year rate change
None currently available
State solar incentives
Zero active programs
Cost and payback in Indiana
Currently, authoritative median cost data specific to Indiana residential solar installations (such as from LBNL) is insufficient to provide exact state-level price-per-watt figures. However, regional averages generally point to a competitive installation market.
The financial equation for an Indiana home using the average 936.9 kWh/month depends strongly on how you handle your excess energy. Without a battery, most solar production happens during midday hours when energy usage might be low, leading you to export it to the grid. With a home battery, you can capture that excess energy and use it when the sun goes down, significantly boosting the savings you get from your solar system.
Net metering and export rules
Indiana is governed by Senate Enrolled Act 309, which officially phased out traditional, full-retail-rate net metering for new solar customers across the state's major investor-owned utilities by July 1, 2022.
If you install a new solar array today with AES Indiana, Duke Energy, NIPSCO, or Indiana Michigan Power, you will likely be placed on an Excess Distributed Generation (EDG) tariff. Rather than getting credited at the retail electricity rate for your exported solar power, you receive an avoided-cost rate (wholesale cost plus a 25% premium). This rate is substantially lower than what you pay for incoming grid electricity.
| Policy Type | Varies by utility (EDG for most new customers) |
| Net Metering Phase Out | Ended for new solar customers by July 1, 2022 |
| Current Export Rate | Excess Distributed Generation (marginal cost + 25%, typically well below retail) |
| Grandfathering | Pre-2018 installations locked for 30 years; 2018-2022 installations locked for 15 years |
Non-grandfathered customers are paid for excess generation under an EDG tariff rather than at the retail rate. Media and secondary reporting on SEA 309 describe the intended EDG rate as the utility's marginal (avoided) cost plus 25%, well below the retail rate net metering paid. This research pass could not independently confirm a current, utility-specific cents-per-kWh EDG figure against a 2026 IURC-approved tariff for AES Indiana, Duke Energy Indiana, NIPSCO, or Indiana Michigan Power (their utility websites returned errors to automated access, and IURC's own site was unreachable from this research environment) -- treat any specific EDG rate number as unverified until confirmed directly against a current utility tariff or IURC docket.
Top utilities in Indiana
Electric rates vary among Indiana providers. While investor-owned utilities are subject to state EDG rules, rural electric cooperatives and municipal utilities follow their own independent policies.
| Utility | Residential rate | Customers |
|---|---|---|
| Duke Energy Indiana, LLC | 12.75¢/kWh | 796,265 |
| AES Indiana | 13.75¢/kWh | 469,499 |
| Northern Indiana Pub Serv Co | 19.09¢/kWh | 430,648 |
Lease vs. buy in Indiana
With the federal clean energy credit unavailable for residential systems installed after 2025, purchasing outright might no longer yield the same massive federal tax shield. A solar lease or power purchase agreement (PPA) can sometimes offer immediate savings, as the company that owns the system may still qualify for a business federal tax credit and pass those savings down in your lease rate. See our full lease vs. buy vs. PPA guide for more details.
Estimate your own numbers
The numbers above are for a household at Indiana's average usage. Use the solar calculator with your own usage and any quote you've received.
FAQ
Does Indiana have state solar tax credits or rebates?
No, Indiana does not currently offer a statewide solar rebate or state tax credit. However, Indiana homeowners who purchase their own solar panel system can claim the federal residential clean energy credit, though it is not applicable for systems installed after 2025.
Does Indiana still have net metering?
Full retail net metering was phased out for new solar customers in Indiana by mid-2022. If you install solar now, your excess energy is typically compensated under an Excess Distributed Generation (EDG) tariff, which credits you at a lower, wholesale-based rate rather than the full retail rate.
Is solar worth it in Indiana without full net metering?
It can be, but the financial math has changed. Because excess solar energy sent back to the grid is paid at a lower rate, you get the best return by self-consuming as much of your own solar power as possible, often by pairing your panels with a home solar battery.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil