Indiana's 2022 net metering change reshaped the whole incentive picture
No state credit, and net metering ended for new systems
Indiana does not offer a state income tax credit for solar. More significantly, traditional net metering ended for new installations in 2022 under Senate Enrolled Act 309. Indiana's five largest investor-owned utilities, AES Indiana, CenterPoint, Duke Energy Indiana, Indiana Michigan Power, and NIPSCO, no longer accept new net metering customers. New systems are enrolled in the Excess Distributed Generation program instead, crediting exported power at roughly 125% of the utility's wholesale or avoided cost rate, well below what you pay for grid electricity. Homeowners who installed before the 2022 change stay grandfathered into full retail terms for 30 years from their original interconnection approval date, per the Indiana Utility Regulatory Commission's own net metering resource page, meaning the actual grandfathered cutoff date depends on when your specific system was approved rather than being a single fixed year for everyone.
Two tax exemptions that apply automatically in most cases
Under Indiana Code 6-1.1-12-26, any increase in your home's assessed value from a solar installation is fully excluded from your property tax assessment, typically requiring Form 18865 filed with your county auditor, per Indiana's Department of Local Government Finance, which treats this as a deduction against assessed value rather than a credit against tax owed. Solar equipment directly involved in electricity production, including panels, racking, and inverters, is also exempt from Indiana's state sales tax, applied through Form ST-105 at the time of purchase. Both exemptions are described as largely automatic once the correct forms are filed, requiring little ongoing effort from homeowners. At least one source describes the property tax deduction as scheduled to expire on January 1, 2027, though this wasn't independently confirmed against a second primary source, so verify current status with your county auditor rather than assuming it's permanent. Use the property tax exemption savings calculator for a longer projection.
No statewide SREC market
Unlike states such as New Jersey or Ohio, Indiana doesn't have a statewide Solar Renewable Energy Certificate market, since the state's renewable portfolio standard is voluntary rather than mandatory. That removes one potential income stream that homeowners in SREC states can access, making the property tax and sales tax exemptions, along with whatever net metering or EDG credit you qualify for, carry relatively more weight in Indiana's overall incentive picture. Compare against the Illinois incentive estimator for a neighboring state with an active SREC-style program.
Utility choice matters more than the state-level incentives
Because Indiana's statewide programs are comparatively lean, which utility serves your home has an outsized effect on your total solar economics, particularly given the below-retail EDG credit rate most new customers now face. Check your specific utility's current EDG tariff directly, and confirm your federal ITC status separately given how significantly federal rules changed heading into 2026.
If you borrow for the rest of the system, the combined loan and rebate timing tool takes your rebate total and works out the monthly payment on the balance.