Solar power in Indianapolis, Indiana
Indianapolis Power and Light offers net metering to its Indianapolis customers.
Indianapolis residents can also take advantage of the federal solar tax credit. In 2020, the tax credit is equal to 26% of the cost of a solar system and is applied to your federal income taxes. In some cases, you may be able to wipe out your entire tax bill for a year.
The combination of the federal tax credit and Indianapolis Power and Light’s net metering program can provide you with a great return on investment when installing a solar system in Indiana!
Net Metering Broken Down
Under net mtetering, the utility will pay their solar customers for any excess electricity their solar systems generate at the full retail rate of electricity.
However, net metering in Indiana is being phased out. Customers who sign up for net metering before July 1, 2022, will be in the net metering program until July 1, 2032. However, any systems installed after July 1, 2022, cannot sign up for net metering.
So, the sooner you install solar in Indiana, the better!
The average cost of installing residential solar panels in Indianapolis,
Indiana in 2024 is
$2.67 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Indianapolis, IN
is $13,350.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in Indiana is only 1055kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Indianapolis solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our Indiana solar savings calculator can do this because it contains a database of the electric rates charged by Boone County Rural EMC, City of Frankfort, Hancock County Rural E M C, Indiana Michigan Power Co, PSI Energy Inc, Indianapolis Power & Light Co
How much can solar panels save you in Indianapolis
What does the cost of a real solar system look like?
Facts about installing a 6.87kW solar system in Indianapolis, IN
This system would offset 100% of your energy usage if your typical monthly bill is $114, however your situation may vary so try our Indianapolis solar calculator to get a result tailored to you.
$13,269
Net cost of system
8 Years 2 Months
Average payback time
8,094 kWh
Annual power production
7¢/kWh
Levelized cost of solar energy
30¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 6.87kW system
Life-time savings on this system over the next 25 years
$41,681
(Prices shown after repayments of capital)
4
Solar companies in Indianapolis, IN that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Indianapolis
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,371 | $6,881 |
| 4kw | $8,288 | $8,951 |
| 5kw | $10,101 | $10,909 |
| 6kw | $11,855 | $12,803 |
| 7kw | $13,468 | $14,545 |
| 8kw | $14,978 | $16,176 |
| 9kw | $16,450 | $17,766 |
| 10kw | $17,760 | $19,181 |
Find out what system size you need for your home
Going solar in Indiana
Check out all of the ways energy providers of Indiana can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Net Metering | State | Net Metering |
| Sales and Use Tax Exemption for Electrical Generating Equipment | State | Sales Tax Incentive |
| Solar and Wind Technologies Property Tax Exemption | State | Property Tax Incentive |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
