4 Best Solar Companies in Indiana (2024) – MarketWatch
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The average cost of a home solar system in Indiana is $2.82 per watt, so you can expect to pay around $16,920 for a 6 kilowatt (kW) system before incentives. This rate is slightly lower than the average U.S. average of $2.85 per watt or $17,100 for a 6 kW system.
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Pricing is based on responses to two surveys we conducted in 2023 of 2,000 total homeowners with 8 kW solar systems and pricing information obtained directly from SunPower and local providers. Your cost may vary.
Top 4 Solar Companies in Indiana of 2024
Here are our picks for the top solar companies in Indiana:
Our team includes solar energy experts who researched products and services offered by different solar companies in Indiana. We also reviewed local sunshine conditions, available tax exemptions and net metering policies. To further inform our writing, we conducted two solar surveys in 2023, collecting data from 2,000 homeowners who have purchased solar panels from various providers in Indiana and nationwide.
What To Look for in a Solar Company
The MarketWatch Guides team gives consumers general recommendations to consider before buying a home solar panel system, regardless of your state. First and foremost, compare offers from multiple solar companies and ensure you can get high-quality equipment with solid warranty coverage. We also have specific recommendations for comparing solar companies in Indiana:
Indiana has five major utility companies and 38 electric cooperatives. The interconnection and permitting requirements for home solar systems depend on your location. You can avoid delays by finding a solar installer familiar with your local utility company’s installation requirements.
Although Indiana has a sales tax exemption for solar equipment, there are no solar rebate programs to help you lower upfront costs. To avoid a large initial investment, find a solar company that has low-interest financing.
Indiana has a net metering policy that ensures solar owners get paid for supplying excess energy. However, the state modified the policy in 2022, lowering rates significantly. Solar owners who qualified for net metering before the policy changes still get full credit for excess energy, but new participants receive partial credit. You can save the full value of each kilowatt-hour by storing it in a battery instead of sending it to the grid.
Benefits of Going Solar in Indiana
Indiana homeowners who install solar systems can expect the following benefits:
- Power bill savings: A 6 kW home solar system can generate around 8,000 kWh of energy per year in a city like Indianapolis, based on local sunshine levels. At the average residential rate of 15.17 cents per kWh, this is equivalent to $1,214 in potential savings. Over its 25-year lifespan, this solar system could save you more than $30,000. You will likely see higher savings than our estimate because electricity prices increase over time — but installing solar also protects you from rising energy costs.
- Increased home value without additional taxes: Indiana has a property tax exemption for solar energy systems. Assume you own a $250,000 home with a 0.8% property tax rate, which equals $1,875 in taxes per year. If your home value increases to $270,000 after installing solar panels, your taxes stay at $1,875 instead of increasing to $2,025.
- Reduced carbon footprint: Indiana generates around 85% of its electricity with coal and gas-fired power plants, according to the U.S. Energy Information Administration (EIA). By switching to solar energy, you can lower your consumption of fossil fuel electricity while saving thousands of dollars in electric bills.
Common Concerns
Each state offers different opportunities and challenges for homeowners who install solar panels. In the case of Indiana, the payback period of solar panels can exceed 10 years because of three primary reasons:
- No solar rebate programs or state tax credits: Indiana does not offer solar rebates or state tax credits to lower your system cost. While you can claim the 30% federal tax credit, you must still assume the full upfront cost of your solar panels and wait until the next IRS filing to get your credit.
- Lower-than-average local electric rates: Since Indiana’s electricity rates are below the national average, the savings you can achieve per kilowatt-hour of solar energy are also lower than in other states.
- Decreased net metering value: Net metering allows you to send excess solar energy generation to the grid in exchange for power bill credits. In Indiana, you will still save the full value of solar electricity your home directly consumes but if you participate in net metering, will only get partial credit for excess energy sent to the grid.
The state’s 10-year payback period becomes less of an issue if you look for high-quality panels with a long warranty. The best solar brands have at least a 25-year equipment warranty, giving you 10 to 15 years of guaranteed energy production after recovering your investment. Also, solar installers offer a separate workmanship warranty to cover installation issues.
Solar Trends in Indiana
Indiana has a positive solar energy outlook, reflected by the following figures from the Solar Energy Industries Association (SEIA):
- Indiana is projected to add 8,727 megawatts (MW) of solar capacity between 2024 and 2028, a growth of 380% from the current capacity of 2,299 MW.
- Indiana has received a cumulative solar investment of over $2.7 billion. The SEIA reported the state had 97 solar companies and 3,964 solar jobs as of July 2023.
Indiana has major coal reserves and 52% of local electricity comes from this fossil fuel, according to the EIA. Natural gas is the state’s second-largest electricity source (33% of generation), whereas renewable sources only generate 12% of Indiana’s electricity.
Indiana Solar Incentives
Indiana offers two tax exemptions for solar panel systems but no rebate programs or state tax credits. The Hoosier State has a net metering policy, but the rates paid for excess solar energy are not as high as they once were.
Federal Incentives
The Investment Tax Credit (ITC) has been the largest solar incentive nationwide since 2006. If you install a solar panel system, you can claim 30% of the costs as a federal tax credit. For example, an Indiana homeowner who installs a 6 kW solar system for $16,920 can claim a $5,076 credit, reducing the net system cost to $11,844. This tax incentive is also available for home battery systems and other renewable energy technologies.
Statewide Incentives
Indiana has two state incentives for solar energy systems.
| Incentive | Savings | Explanation |
| Renewable Energy Property Tax Exemption | 100% of property taxes resulting from a solar energy system | If you install a home solar system, the increase in property value is not taxed. For example, if your home value increases from $250,000 to $270,000 after going solar, you will not pay property taxes for the $20,000 worth of added value. |
| Sales and Use Tax Exemption for Electrical Generating Equipment | 7% of the cost of eligible solar equipment | Indiana exempts solar panels, inverters and racking equipment from the state sales and use tax. However, you pay the sales tax for other system components, such as monitoring systems and battery banks. |
Local Incentives
Net metering programs in Indiana normally pay a reduced rate for excess solar energy, rather than the retail rate utility companies typically charge customers. However, Northern Indiana Public Service Company (NIPSCO) customers receive a favorable feed-in rate of 15.64 cents per kWh, only slightly lower than the retail rate of 16.1535 cents per kWh.
The NIPSCO feed-in tariff is only available for solar systems with a size of 5 kW to 10 kW. There was another tariff for larger systems up to 200 kW, but it has been closed to new applications.
Frequently Asked Questions About Solar Companies in Indiana
Yes, we think the projected energy savings make going solar worth it in Indiana. A 6 kW solar system can save Indiana homeowners over $30,000 during its 25-year lifespan while having a net cost of around $11,844. In other words, you would see more than $2.50 in power bill savings for every dollar invested upfront.
According to the latest data from the SEIA, Indiana has 97 solar companies, including 36 solar installers and developers. SEIA also reported 27 solar equipment manufacturers and 34 companies dedicated to other areas of the solar industry.
Based on our review, Jefferson Electric LLC covers its solar installations with a lifetime workmanship and product warranty. On a national level, SunPower offers a 25-year equipment, workmanship and performance warranty, with some panel models including 40 years of coverage. Generally, we recommend selecting an installer with at least 25-year product coverage and a 10-year or longer workmanship warranty.
Methodology: Our System for Ranking the Best Solar Companies
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