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Fact Sheet: Solar Energy Use in Indiana

The state of Indiana: home to the galloping Wabash River, rolling hills carved from glacial migration, and hearty American farmland. Though solar power has yet to become a leading source of energy in this state, Indiana is preparing to build new large-scale solar energy farms. With these additions, the future of solar energy in Indiana looks promising.
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ndiana has not established an extensive support system to encourage the expansion of solar power at this time. However, the state enjoys abundant sunshine and excellent tax exemptions for solar energy. With these solar incentives, any homeowner can enjoy the benefits of solar power’s untapped potential. Read on to decide if an Indiana solar energy system is right for you.

Grid Connected Solar Power Systems In Indiana (2012)

  • Residential Systems: 0.4 Megawatt
  • Non-Residential Solar Power Systems: 0.6 Megawatt
  • Utility: N/A
  • Total: 0.9 Megawatt
  • Cumulative: 4.4 Megawatt

The state’s low cumulative solar energy production suggests that the state could benefit from an increase in solar power use. Indiana has also recently started several new projects to increase solar production in the state. These recent projects include a new solar energy farm at the Indianapolis International Airport.

Cost of Electricity in Indiana

  • Electricity Price: $0.11 per kwh
  • Average Electricity Bill: $123.00
  • Average Bill after Solar: $87.00

A solar installation in Indiana can reduce a household’s average monthly electric bills by about $40, money that can add up to a considerable sum over time. It is important to remember that a leased solar power system does not require any additional expenses; in other words, a leased system is free, and homeowners can benefit from an immediate reduction in electric costs.

Solar Radiation

Average solar radiation in Indiana is between 2 and 3 Kilowatts per day over an area of 1 square meter (10.76 square feet). Most major cities in Indiana experience between 170 and 202 annual days of sunshine. Though the state’s average levels of solar radiation are relatively low, Indiana still receives a large amount of sunlight.

State Solar Incentives and Rebate Programs

  • State Solar Tax Credit: None
  • State Solar Rebate: None
  • Property Tax Exemption: 100% exempt
  • Sales Tax Exemption: 100% exempt

Complete property and sales tax exemptions result in excellent savings for Indiana residents. In addition to these solar incentives, the Federal Tax Credit also applies.

Solar Installers in Indiana

Indiana has no special regulations for solar installers. However, solar installers should know that the installation of solar power is considered electrical work, and so any solar installer must be a licensed electrical contractor in Indiana. To verify the license of their solar installer, homeowners should check with their local municipal authority. Indianapolis residents can research their solar installer on the city's website.

Summary: Good Conditions for Solar Power Systems

Though Indiana is a mediocre state for solar power systems, there is plenty of untapped potential waiting to be harnessed. The state enjoys a large number of sunny days, and solar installers enjoy excellent property and sales tax exemptions. To calculate your costs and savings, please use our Solar Calculator, or contact solar installers in your area.

Solar Energy Fact Sheet: Indiana, ©

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Written by: Oliver Behrla, Editor