Solar property tax exemption in Indiana
A solar property tax exemption means that, for tax purposes, the addition of a solar energy system won’t cause an increase in your property’s assessed value. It doesn’t actually make going solar cheaper up front.
It applies to added value from solar, not total property value. Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home. This property tax exemption also applies to commercial, industrial, agricultural and multi-family residential buildings.
Non-residential solar incentives in Indiana
Bloomington’s SEEL program offers grants to help cover the cost of solar panels and battery systems. It can significantly reduce solar costs, but funds are limited to organizations, not residential homeowners.
The program is designed for businesses, nonprofits and community organizations, with solar grants of up to $25,000. Some nonprofits may also qualify for additional battery funding.
What to know about net metering in Indiana
Net metering allows homeowners with solar (or other small renewable energy systems) to use the electricity they produce first and send any extra power back to the grid.
Indiana has mostly replaced traditional net metering with a system called Excess Distributed Generation (EDG). You can still earn credits for extra solar energy sent to the grid, but those credits are worth less than what you pay for electricity. This means exporting power saves you less than it used to.
Some homeowners with older systems may still receive higher credits under previous rules. For new customers, solar can still lower your bill. However, you’ll save more by using your energy at home instead of sending it back to the grid.
Solar panel costs in Indiana
Average solar panel costs in Indiana generally start between $14,262 and $28,524.
System size is a major cost factor when going solar. A typical Indiana household needs about a 8.7 kW system, which costs $24,795 on average. Depending on your energy needs, you might need a smaller or larger system.
Your total price also depends on whether you add battery storage to your system. Solar batteries cost $7,000 to $18,000, which can nearly double the total system price.
Average solar panel costs by system size in Indiana
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide average | $14,262 | $17,115 | $19,967 | $22,820 | $25,672 | $28,524 |
Federal solar loan programs
Energy Efficient Mortgages allow homeowners to finance energy-saving upgrades, including solar systems, as part of their mortgage, often with support from federal programs like FHA or VA.
- FHA Energy Efficient Mortgages are available to many homebuyers. This lets you add money to your mortgage for energy upgrades. The upgrade cost must be less than the expected energy savings.
- VA Energy Efficient Mortgages are available to military members, veterans and reservists. This lets you add up to $6,000 if energy savings justify the cost.
- Conventional Energy Efficient Mortgages are offered by private lenders (not government-backed). You can borrow up to 15% of a home’s value for energy upgrades. This may help borrowers qualify by adjusting debt-to-income rules.
Compare solar companies in Indiana
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Indiana’s top solar companies to learn more.
| Company | Customer rating | Pro install | Max. panel efficiency | Panel warranty | Payment options | Year founded | |
|---|---|---|---|---|---|---|---|
 Blue Raven Solar | Get Started | 3.4 |  | Varies | 25 years | Cash, loan, lease, PPA | 2014 |
 SunPower | Learn More | 3.3 | | 22.8% | 25 years | Cash or loan | 1985 |
 ShopSolar | Learn More | 4.6 |  | Varies | Varies | Cash, loan | 2018 |
Find solar companies in your city
More solar resources in Indiana
Below are additional resources that can help you go solar in Indiana.
FAQ
What happened to the federal solar tax credit?
The federal solar investment tax credit (ITC) previously let homeowners claim 30% of installation costs from their federal taxes. It was phased out with the “One Big Beautiful Bill Act” (OBBBA) in 2025.
Homeowners who installed solar systems before the deadline may still claim the credit, but systems installed in 2026 or later no longer qualify.
» EXPLORE: Solar incentives by state
Are solar panels worth it in Indiana?
Going solar is often worth it in Indiana for the long-term savings on utility bills. Over 25 years, residents with solar panels avoid $24,351 in utility costs on average.
Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Your average energy consumption tells you what size solar system you need. Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself.
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of getting a lease or power purchase agreement.
» SOLAR PANELS: Lease vs. buy
Is my house a good candidate for solar?
Solar panels work best on large, unshaded roofs that face south or west. We suggest using NREL’s PVWatts Calculator to estimate how much electricity a solar panel system on your roof can produce over a year.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Is my HOA allowed to restrict solar panels?
A law passed in 2022 limits HOA restrictions and gives homeowners a path to challenge HOA restrictions under certain conditions. Homeowners can now override an HOA’s denial by petitioning other HOA members and getting the requisite number of signatures.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- City of Bloomington, “SEEL Solar and Battery Grants.” Accessed April 13, 2026.
- Indiana General Assembly, “House Bill 1196.” Accessed April 13, 2026.
