State solar incentives

Solar incentives in Indiana to bring down the costs

Indiana is a fairly sunny state, where a solar system can substantially cut your electricity bills and help save money. And to save some more, read our article on solar incentives in Indiana.

Save 30% of your PV system cost with Federal Solar Tax Credit

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Sell excess electricity with net metering program

Solar laws in Indiana allow customers of investor-owned utilities and electric cooperatives to join net metering programs with solar systems under 1 Megawatt. This gives solar owners an opportunity to put the excess electricity into the utility grid instead of storing it in batteries. When you sell your solar power to the grid, you receive credits that can be used to offset your next bills.

The credit value in Indiana is equal to the retail rate of your utility electricity price which will vary depending on your provider. Unused credits have no expiration date as long as you stay with your provider. Before you can start net metering, you must submit an interconnection agreement with your utility provider approved by the Indiana Utility Regulatory Commission (IURC).

Raise your property value but not your taxes

Indiana residents invested in a solar energy system will not have to pay any additional property taxes on the added value they bring to their homes. Due to the property tax exemption for renewable energy systems, the Indiana Code ensures any new PV system installed will not be part of your property tax. However, any such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report. In order to claim the exemption, property owners must fill out Form 18865 and file it with the local county auditor.

4%

this is how much solar panels increase the value of your house

Indiana sales tax exemption makes solar equipment cheaper

Many components are exempt from your sales tax under Indiana’s sales tax exemption for electrical generating equipment when you install a solar energy system. According to the law, you don’t have to pay sales tax on products directly involved in the production of electricity on your solar modules, for example, racks, and inverters.

Solar Easements will protect your solar panels from shade

A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but cannot be canceled unless a specific clause is included in the document. Any such agreement must be created in written form and must meet the general requirements for legal contracts.

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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

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