Net metering at retail rate phased out; current export credits reduce savings.
Avg residential rate14.5¢ / kWh
Avg system cost$2.80 / W ($30,800 for 11 kW)
Peak sun hours / day4.4
Net meteringSuccessor Tariff
State tax creditNone
Federal tax credit30% (Residential Clean Energy Credit, through 2032)
Property tax exemptionYes
Sales tax exemptionNo
Indiana payback by monthly electric bill
The bigger your current bill, the faster solar pays back. Here's how the numbers work out for a typical Indiana home:
Monthly bill
System size
Gross cost
Federal credit
State credit
Net cost
Year-1 savings
Payback
$100
6.3 kW
$17,584
−$5,275
$0
$12,309
$1,141
9.7 yr
$150
9.4 kW
$26,348
−$7,904
$0
$18,444
$1,709
9.7 yr
$200
12.6 kW
$35,140
−$10,542
$0
$24,598
$2,280
9.7 yr
$300
18.8 kW
$52,724
−$15,817
$0
$36,907
$3,420
9.7 yr
Assumes 95% bill offset, 3% annual rate inflation, 0.5% annual panel degradation, and a 25-year system life.
Calculate your exact Indiana solar payback
Enter your real monthly electric bill to see your personalized payback estimate.
Best path forward in Indiana
The fastest, free way to see real installer quotes for your roof is to use a marketplace like EnergySage. You'll get up to 4 competing bids from local pros without phone harassment.
How long does it take for solar panels to pay for themselves in Indiana?
For a typical Indiana home with a $150/month electric bill, a 9.4 kW system pays for itself in about 9.7 years. Higher bills (or higher state incentives) shorten this; lower bills lengthen it.
What's the average cost of solar panels in Indiana?
Indiana installers average $2.80 per watt before incentives. A typical 11 kW system costs roughly $30,800 gross, or about $18,444 after federal and state credits.
Does Indiana offer a state solar tax credit?
Indiana does not offer a state-level solar tax credit. However, the 30% federal Residential Clean Energy Credit still applies, and there may be utility rebates in your service area.
Does Indiana have net metering?
Indiana replaced retail net metering with a successor tariff that credits exports at less than the full retail rate. Solar still pays back, but adding battery storage can recover much of the lost value.
Are solar panels worth it in Indiana in 2026?
For most Indiana homeowners with a monthly electric bill above $100, the answer is yes — payback typically lands between 6.8 and 12.6 years depending on roof orientation, shade, and incentive timing. The 30% federal credit is locked in through 2032, removing a major timing risk.