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Indiana is one of the top solar-producing states in the Midwest. It has invested almost $2 billion into developing its solar industry, making it an excellent place to switch to solar energy. Whether you’re thinking about going solar for the financial or environmental benefits, SaveOnEnergy is here to help. Keep reading to find everything you need to know about installing solar panels in Indiana, including the perks, costs, and incentives.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
The cost of solar panels is measured in dollars per watt. In Indiana, the average cost of solar is $4.10 per watt, compared to the U.S. average of $3.67. The typical Indiana homeowner needs a 9-kilowatt (kW) solar panel system to cover their energy needs. The following table shows how Indiana’s average costs stack up against U.S. averages.
| System size (kW) | Price per watt | Total system cost | |
|---|---|---|---|
| Indiana | 9 kW | $4.10 | $36,900 |
| U.S. | 8.6 kW | $3.67 | $31,558 |
The overall cost of solar can vary based on a few factors, including the type of panels, the size of your system, and labor and installation costs.
Installing solar panels in Indiana can save you money over time by helping you lower your energy bills. The length of time it takes for your system to pay for itself through these energy savings is known as the payback period. Based on the average monthly utility bill in Indiana of $138.78, the payback period for the average 9 kW system would be about 15 years. However, system sizes vary based on your home and energy usage patterns. The following table shows various system sizes, panel counts, and costs at Indiana’s average price per watt.
| System size | Total cost | Number of solar panels* |
|---|---|---|
| 5 kW | $20,500 | 13–17 |
| 7 kW | $28,700 | 18–23 |
| 9 kW | $36,900 | 23–30 |
| 11 kW | $45,100 | 28–37 |
| 13 kW | $53,300 | 33–43 |
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
The upfront costs of buying and installing solar panels can be a large investment. However, state and federal incentives and rebates can help you offset the costs of your solar system. For example, the Residential Clean Energy Credit is a 30% federal tax credit that can be applied to systems purchased in 2022 through 2032. Discover the solar rebate and incentive programs that can lower the cost of residential solar panels in Indiana in the following table.
| Program | Description |
|---|---|
| Property tax exemption | Solar systems in Indiana are exempt from property tax. Homeowners must submit a form with their local county auditor to claim it. |
| Net Metering | Indiana allows net metering, which is when you sell excess energy to the grid in exchange for bill credits. Utilities like AES Indiana, Indiana Michigan Power, and Southern Indiana Power all offer net metering. Contact your local utility company for more information. |
In addition to the federal and state incentives available to all Indiana residents, homeowners in Indianapolis may be eligible for specific local offers provided by installers and utilities. Indianapolis is also committed to achieving carbon neutrality by 2050 and incentivizes its residents to go solar. The city launched a pilot project called Thrive Indianapolis in 2020 to encourage low-income households to switch to solar. The program includes several strategies to help Indianapolis residents go green:
There are several benefits of going solar in Indiana. Three of the most compelling perks are fewer energy costs, independence from the public power grid, and a smaller carbon footprint.
As energy bills continue to climb, the most attractive benefit of solar power is the ability to reduce your monthly energy expenses. When you install solar panels in Indiana, you’ll be equipped to generate energy rather than buying it from a power company. Plus, since solar panels last over 30 years, you’ll be saving money on electricity rates far into the future.
Using solar panels to generate electricity for your home decreases your reliance on the public power grid. If you have a solar battery, you’ll have a backup option for keeping the power on during temporary outages.
Solar energy is gentler on the environment than traditional energy sources because it’s renewable and doesn’t emit carbon into the atmosphere when produced. These features of solar power help it contribute to the fight against climate change.
Once you’ve decided to invest in solar, you’ll need to figure out if you want to buy or lease your solar panels. Each option has its pros and cons, and the right choice depends on your situation.
Purchasing your panels offers the best return on investment. You can only take advantage of the federal tax credit and Indiana solar incentives if you buy or finance your solar panel system. Buying solar panels for your home can also increase its resale value. However, a solar purchase is not accessible to everyone. Leasing, signing a power purchase agreement (PPA), or enrolling in a community solar program allows Indiana residents to access solar without the upfront costs. Learn more about the benefits and drawbacks of each option in the following table.
| Payment method | Benefits | Drawbacks |
|---|---|---|
| Cash purchase | Largest amount of savings over time, solar system ownership, eligible for incentives, electricity bill savings | High upfront cost |
| Solar loan | Solar system ownership, eligible for incentives, electricity bill savings | Monthly payments, interest fees |
| Solar lease | Avoid upfront costs, little to no maintenance, electricity bill savings | No ownership, ineligible for incentives, potential rate increases |
| Power purchase agreement | Avoid upfront costs, little to no maintenance, electricity bill savings | No ownership, ineligible for incentives, potential rate increases |
| Community solar | No upfront costs, power home with clean energy, electricity bill savings | No ownership |
Indiana homeowners have many options when choosing a solar panel company. SaveOnEnergy can help you on your solar journey from start to finish. Explore our library of solar resources to get acquainted with the industry, including info on solar inverters, the best solar batteries, and the best solar panels. We partner with trusted solar installers in your area. You can work with an energy expert to create, finance, and build your personalized solar plan. Fill outour solar estimator or call the number on your screen to be connected with an energy expert today. The following table highlights a few popular Indiana solar installers to consider during your search.
| Solar installer | Year founded | Financing options | Warranty terms |
|---|---|---|---|
| ADT Solar | 2011 | Cash purchase or solar loan | 25-year manufacturer warranty and production guarantee |
| SunPower Solar | 1985 | Cash purchase, solar loan, or lease | 25-year full system warranty |
| Blue Raven Solar | 2014 | Cash purchase or solar loan | 25-year product warranty, 10-year quality of work warranty |
Several factors can help you choose the best solar installer in Indiana for your home. The best solar companies are licensed and provide strong manufacturer warranties for high-quality products. You may also find companies that offer specific services important to you, like battery installation, energy efficiency audits, roof repair, or tree removal. Consider whether a company offers various financing options that fit your budget. It’s also a good idea to browse customer reviews to get an idea of a solar company’s reputation. You should obtain several quotes before signing a contract to ensure you’re making a smart investment.
You most likely won’t find legitimate offers for free solar panels in Indiana, unless it is part of a city program or partnership for low-income households. Unfortunately, some companies try to take advantage of customers by locking them into loan programs advertised as free. Some companies may also try to persuade you to sign a misleading contract. You can avoid these scams by staying up-to-date on the latest information about the Indiana solar industry. If you know the market price for solar panels and other key information provided on this page, you can more easily identify genuine solar panel offers.
Solar energy works by capturing sunlight and converting it into usable energy. Therefore, you have several additional considerations to account for when thinking about solar energy for your home.
Various factors affect the overall price of your solar system, including the quality of the products you choose, whether you install a battery, and your home’s energy needs. The typical price for solar panels in Indiana is $4.10 per watt. For a 9 kW system, this translates into a total cost of $36,900 before applying any tax credits or other incentives.
Solar panels can be a good investment for many homeowners. If you plan on staying in your home for many years to come, you can take advantage of long-term energy savings. Solar panels usually last between 25 and 30 years. The payback period in Indiana is about 15 years, meaning you’ll have about a decade of free energy to look forward to.
The best way to find a good solar installer is to thoroughly research your options. You can read up on all the necessary information at SaveOnEnergy and receive a free estimate of your potential solar savings. If you’d like help from an energy expert, feel free to call the number on your screen.
Solar panels don’t release any carbon dioxide when they generate power. As a result, solar is a green energy source. By helping reduce carbon dioxide levels in the atmosphere, solar power helps prevent climate change. In addition, solar is a renewable energy source since your panels can generate energy every time the sun shines.
