Every claim on this page checked against primary sources on
Indiana solar incentives
Indiana's solar property tax deduction is gone, and almost every guide still lists it. Public Law 68-2025 amended both deduction sections and their claim section so that each applies only to property taxes imposed for an assessment date before January 1, 2025, with all three expiring January 1, 2027. That is not a future deadline — it has already passed.
Net metering closed to new Indiana customers after June 30, 2022 by statute. What replaced it is excess distributed generation compensation at a rate fixed by formula: the average marginal price of electricity the utility paid last year, multiplied by 1.25. There is no state income tax credit and no sales tax exemption a household can reach.
Does Indiana still have a solar property tax deduction?
No. Indiana had two — Indiana Code § 6-1.1-12-26 for solar heating and cooling systems and § 6-1.1-12-26.1 for solar power devices, which is the photovoltaic one — and Public Law 68-2025 amended both, plus the section you used to claim them under, § 6-1.1-12-27.1. Each now reads that it "applies only to property taxes imposed for an assessment date before January 1, 2025," and each "expires January 1, 2027." Indiana assessment dates fall on January 1, so the deduction stopped applying with the 2025 assessment date. It was never automatic in any case: the claim section required a certified statement filed in duplicate with the county auditor on or before January 15 of the year the taxes were first due and payable. What the deduction used to do was subtract the difference between the assessed value of the property with the solar device and its assessed value without it — in effect making the system add nothing to your assessment. That is what has ended.
Verified against primary sources on .
Indiana is the state where the guides are furthest behind the law. Almost every roundup still lists Indiana's solar property tax deduction as a live benefit. It is not: Public Law 68-2025 amended both deduction sections and their claim section so that each "applies only to property taxes imposed for an assessment date before January 1, 2025," and each expires January 1, 2027. That benefit is already gone, not going. Net metering closed to new customers by statute after June 30, 2022, leaving new solar owners on excess distributed generation compensation set by formula at the average marginal price of electricity times 1.25. There is no state income tax credit — the Department of Revenue's 2025 IT-40 booklet enumerates every credit an individual can claim and mentions neither solar nor energy — and no sales tax exemption a household can reach, because that one is gated at two megawatts and expressly excludes property used to produce energy for the purchaser's residential use.
| Program | What it pays | Status | Ownership | Checked |
|---|---|---|---|---|
| Excess distributed generation compensation | Bill credit | Open now | You must own the system |
What Indiana still pays
One entry. That is not an editing shortcut — it is the complete list of standing incentives for a new Indiana solar owner, and the honest shape of this page.
Excess distributed generation compensation
Bill creditA commission-approved rate equal to the average marginal price of electricity paid by the supplier during the most recent calendar year multiplied by 1.25; each supplier files an updated rate by March 1 annually
The only thing Indiana still pays a new solar owner: a wholesale-derived export rate with a 25% uplift, set by statutory formula and refreshed every March.
When: Standing statutory scheme. Rates are refiled annually by March 1.
Who qualifies, in full
- THE OWNERSHIP RULE IS STATUTORY: Indiana Code § 8-1-40-3 defines "distributed generation" as electricity produced by a device that is located on the customer's premises, OWNED BY THE CUSTOMER, sized at the lesser of 1 MW or the customer's average annual consumption on the premises, and interconnected under the commission's approved standards. A system the customer does not own does not meet the statutory definition
- System size is capped at the lesser of one megawatt or your own average annual consumption at the premises
- The rate is not negotiated: § 8-1-40-17 directs the commission to approve a rate equal to the average marginal price of electricity paid by the supplier during the most recent calendar year, multiplied by 1.25
- "Marginal price of electricity" means the hourly market price for electricity as determined by the regional transmission organization the supplier belongs to — so this is a wholesale-derived number, not a retail one
- Each supplier must file an updated rate with the commission by March 1 each year, so the figure changes annually and differs between suppliers
- Compensation arrives as a credit on the monthly bill. Excess credit is carried forward and applied against future charges "for as long as the customer receives retail electric service from the electricity supplier at the premises" — so it is tied to the address and to continuous service
- A supplier may separately ask the commission to approve recovery of energy delivery costs attributable to distributed generation customers, provided the request is reasonable and does not double-recover
- The supplier must provide and maintain the metering equipment needed to carry out the procurement, and recovers those costs in its basic rates
- Emergency-only generators are excluded, as is any facility still operating under a legacy net metering tariff
- Does not apply to customers of municipal utilities or rural electric membership corporations, which are excluded from the definition of "electricity supplier"
- NOT VERIFIED HERE: the current approved rate at any individual Indiana utility. Those are annual commission filings, they differ by supplier, and publishing one figure would misdescribe the other four
Authority: Ind. Code §§ 8-1-40-3, 8-1-40-15, 8-1-40-16, 8-1-40-17, 8-1-40-18, 8-1-40-19, 8-1-40-20
What we saw: Chapter read in full on 2026-07-28 from the Indiana General Assembly's own 2025 Indiana Code, and cross-checked against the IURC's 2017 Technical Conference handout, which reprints the statute as enacted. § 8-1-40-3(a) verbatim: "'distributed generation' means electricity produced by a generator or other device that is: (1) located on the customer's premises; (2) owned by the customer; (3) sized at a nameplate capacity of the lesser of: (A) not more than one (1) megawatt; or (B) the customer's average annual consumption of electricity on the premises; and (4) interconnected and operated in parallel with the electricity supplier's facilities in accordance with the commission's approved interconnection standards." § 8-1-40-17 verbatim: the commission "shall approve a rate to be credited to participating customers by the electricity supplier for excess distributed generation if the commission finds that the rate requested by the electricity supplier was accurately calculated and equals the product of: (1) the average marginal price of electricity paid by the electricity supplier during the most recent calendar year; multiplied by (2) one and twenty-five hundredths (1.25)." § 8-1-40-6 verbatim: "'marginal price of electricity' means the hourly market price for electricity as determined by a regional transmission organization of which the electricity supplier serving a customer is a member." § 8-1-40-16 requires an updated rate "not later than March 1 of each year." § 8-1-40-18 verbatim: "Any excess credit shall be carried forward and applied against future charges to the customer for as long as the customer receives retail electric service from the electricity supplier at the premises." Every section in the chapter carries the same provenance line, "As added by P.L.264-2017, SEC.6," with no later amendment shown.
Administered by Indiana Utility Regulatory Commission.
Checked against Indiana Code § 8-1-40 (Distributed Generation) on
Indiana wrote the ownership rule into the definition
Most states put ownership conditions inside program rules, where they can be waived, amended or worked around. Indiana put it in the statutory definition of the thing being compensated, which is a different and much harder line.
As used in this chapter, "distributed generation" means electricity produced by a generator or other device that is: (1) located on the customer's premises; (2) owned by the customer; (3) sized at a nameplate capacity of the lesser of: (A) not more than one (1) megawatt; or (B) the customer's average annual consumption of electricity on the premises; and (4) interconnected and operated in parallel with the electricity supplier's facilities in accordance with the commission's approved interconnection standards.
"Owned by the customer" is clause (2) of the definition. Everything the chapter then does — the duty to procure, the commission-approved rate, the monthly credit, the carry-forward — applies to "distributed generation" as defined. The national buy-versus-lease picture is here, and Indiana is the sharpest version of it we have found: federal law now favours third-party ownership, and Indiana's compensation statute is written around a system the customer owns.
We are stating what the definition says rather than predicting how a particular lease or power purchase agreement would be treated. If you are being offered a third-party-owned system in Indiana, that clause is the first thing to put to the seller in writing.
Net billing in Indiana
Indiana closed net metering by statute, on a schedule set in 2017, and it is one of the few states to have written the whole thing into code rather than into a tariff. Under Indiana Code § 8-1-40-10 a utility's net metering tariff had to remain available only until the earlier of the year after its enrolled net metering capacity hit 1.5% of its most recent summer peak load, or July 1, 2022. Section 11(b) then provides that after June 30, 2022 an electricity supplier "may not make a net metering tariff available to customers" and that the terms of any earlier net metering tariff "expire and are unenforceable." What replaced it is excess distributed generation compensation, and the rate is a formula rather than a negotiation: the commission approves a rate equal to the average marginal price of electricity the supplier paid during the most recent calendar year, multiplied by 1.25. Marginal price means the hourly market price set by the regional transmission organization — so an Indiana export is paid a wholesale-derived rate with a 25% uplift, not a retail rate. Two things about the old tariff still matter enormously to people already on it, and both are dates.
| System size | Which utilities | What you are paid for exports |
|---|---|---|
| New solar customers — excess distributed generation | Duke Energy Indiana, AES Indiana, NIPSCO, Indiana Michigan Power, CenterPoint Energy Indiana | A rate equal to the average marginal price of electricity paid by the supplier during the most recent calendar year, multiplied by 1.25. Each supplier must file an updated rate with the commission by March 1 each year. Credited on the monthly bill; excess credit carries forward against future charges for as long as the customer keeps retail service from that supplier at that premises. |
| Systems installed before January 1, 2018 | All IURC-regulated suppliers | Grandfathered onto the old net metering tariff until the customer removes or replaces the net metering facility, or July 1, 2047, whichever comes first. A successor in interest at the same premises may choose to continue on the same terms to the same date. This is the 30-year grandfather the IURC's own materials refer to. |
| Systems installed after December 31, 2017 and before the tariff closed | All IURC-regulated suppliers | Grandfathered until the customer removes or replaces the net metering facility, or July 1, 2032, whichever comes first. Successors in interest likewise, to the same 2032 date. Fifteen years shorter than the pre-2018 cohort. |
| The condition that ends grandfathering early | All IURC-regulated suppliers | Both grandfather sections end the protection if the customer "removes from the customer's premises or replaces the net metering facility." Replacing the system — not just removing it — forfeits the legacy tariff. That is the clause to read before any major equipment change. |
| Municipal utilities and rural electric membership corporations | Not IURC-regulated | Outside the chapter entirely. Indiana Code § 8-1-40-4(b) excludes municipally owned utilities and corporations organized under IC 8-1-13 from the definition of "electricity supplier," so none of this applies to them and each sets its own terms. None were read for this page. |
Read from Indiana Code § 8-1-40 (Distributed Generation) on .
If you already have net metering, the date that matters is 2032 or 2047
Indiana closed net metering to new customers, but it did not cancel it for the people already on it — and it split them into two cohorts on a single New Year's Eve.
- Installed before January 1, 2018: you keep the old tariff until July 1, 2047. This is the thirty-year grandfather the IURC's own materials refer to. IURC Net Metering Resource Page
- Installed on or after January 1, 2018 (and before your utility's tariff closed): July 1, 2032. Fifteen years shorter, for a system that might have gone up a fortnight later.
In both cases a successor in interest at the same premises may choose to continue on the same terms to the same date, so a grandfathered system can transfer with a house sale — which makes it a real asset to disclose when selling.
And in both cases there is a clause that can end it early. The protection runs until the customer "removes from the customer's premises or replaces the net metering facility." Removal is obvious. Replacement is not — and a homeowner in year twelve of a 2047 grandfather, quoted for a new inverter or a panel swap, is being offered something that may cost them twenty-one years of retail-rate netting. That clause deserves a phone call to the utility before any major equipment change.
Why Indiana has no solar tax credit, in the state's own words
The Indiana Department of Revenue's 2025 IT-40 Full-Year Resident Individual Income Tax Booklet runs to fifty-six pages and contains the line-by-line instructions for Schedule 5 (Credits) and Schedule 6 (Offset Credits) — the complete set of credits an individual may claim. Across the whole booklet, the word "solar" appears zero times. So does "energy". Indiana DOR, 2025 IT-40 booklet
The sales tax answer is a positive one rather than an absence, and it is blunt. Indiana does exempt components of a solar energy system from sales tax — but the section defines "solar energy system" as a device with a nameplate capacity of at least two megawatts, and it opens by excluding tangible personal property that "will be used to produce energy for the purchaser's residential use, regardless of whether any of the energy produced may be sold to a public utility." A house is disqualified twice over.
With the federal § 25D credit gone for expenditures made after December 31, 2025, an Indiana homeowner buying a system today gets nothing from either government. The federal side is here.
Can you sell SRECs in Indiana?
No. No. Indiana has no renewable portfolio standard and therefore no compliance buyer, and the state's distributed generation chapter deals only in electricity, not in attributes: Indiana Code § 8-1-40-15 requires a supplier to procure "the excess distributed generation produced by a customer" at the commission-approved rate, and § 8-1-40-18 pays for it as a bill credit. Nothing in the chapter creates, allocates or contemplates a certificate. The one place Indiana law does mention what a solar customer is entitled to know about value is § 8-1-40-23, the customer bill of rights, which gives a homeowner the right to know "the value of all federal, state, or local tax credits or other incentives or rebates that the customer may receive" — an obligation on the seller rather than a market for the buyer. NOT VERIFIED HERE: whether an Indiana homeowner can register a system with a voluntary multi-state certificate registry and sell into another state's compliance market. That is a real possibility in the PJM and MISO footprints and it was not researched for this page.
Read from Indiana Code § 8-1-40 (Distributed Generation) on .
What is gone
Three entries, and the ordering tells the story: net metering closed in 2022, the property tax deduction stopped applying from the 2025 assessment date, and the federal credit ended in 2026. Indiana solar lost something in each of three consecutive years.
Indiana net metering — closed to new customers
No direct paymentClosed to new customers after June 30, 2022. Existing participants keep the old tariff until they remove or replace the facility, or until July 1, 2032 or July 1, 2047 depending on when they installed
Gone for anyone installing today — but very much alive for the people already on it, and the date that matters to them depends on whether they installed before 2018.
When: Closed to new customers after June 30, 2022. Grandfathering ends July 1, 2032 or July 1, 2047 by cohort, or earlier on removal or replacement.
Who qualifies, in full
- STILL LIVE IF YOU ALREADY HAVE IT. Installed before January 1, 2018: you continue under the old net metering tariff until you remove or replace the facility, or July 1, 2047, whichever is earlier (§ 8-1-40-14)
- Installed after December 31, 2017 and before your utility's tariff closed: you continue until you remove or replace the facility, or July 1, 2032, whichever is earlier (§ 8-1-40-13)
- In both cases a successor in interest at the premises may choose to continue on the same terms to the same date — so a grandfathered system can transfer with a house sale
- THE TRAP: both sections end the grandfathering if the customer "removes from the customer's premises or replaces the net metering facility." Replacement, not just removal, forfeits it. Read that clause before replacing panels or an inverter
- How it closed: § 8-1-40-10 required a supplier's net metering tariff to remain available only until the earlier of the January after its enrolled net metering nameplate capacity reached 1.5% of the supplier's most recent summer peak load, or July 1, 2022
- § 8-1-40-11(b) then provides that after June 30, 2022 a supplier "may not make a net metering tariff available to customers" and that the terms of any pre-July-2022 net metering tariff "expire and are unenforceable"
- § 8-1-40-11(a) separately barred suppliers and the commission from changing net metering tariff terms before July 1, 2047 — which is why the grandfathered terms are stable rather than subject to erosion
- When the reserved capacity was set in 2017, 40% of it was reserved for residential customers and 15% for customers using a renewable energy resource described in IC 8-1-37-4(a)(5)
- Municipal utilities and rural electric membership corporations were never covered by any of this
Authority: Ind. Code §§ 8-1-40-10, 8-1-40-11, 8-1-40-12, 8-1-40-13, 8-1-40-14
What we saw: Read from the 2025 Indiana Code on 2026-07-28. § 8-1-40-10 verbatim: a net metering tariff "must remain available to the electricity supplier's customers until the earlier of the following: (1) January 1 of the first calendar year after the calendar year in which the aggregate amount of net metering facility nameplate capacity under the electricity supplier's net metering tariff equals at least one and one-half percent (1.5%) of the most recent summer peak load of the electricity supplier. (2) July 1, 2022." § 8-1-40-11(b) verbatim: "after June 30, 2022: (1) an electricity supplier may not make a net metering tariff available to customers; and (2) the terms and conditions of a net metering tariff offered by an electricity supplier before July 1, 2022, expire and are unenforceable." § 8-1-40-13(b) and (c) both end at "(2) July 1, 2032; whichever occurs earlier"; § 8-1-40-14(b) and (c) both end at "(2) July 1, 2047; whichever occurs earlier." The removal-or-replacement condition is the first limb of each: "the customer removes from the customer's premises or replaces the net metering facility." The IURC's Net Metering Resource Page, read the same day, refers to "the Dec. 31, 2017, deadline for the 30-year grandfather provision" and lists the five investor-owned utilities affected: Duke Energy Indiana, Indiana Michigan Power, Indianapolis Power & Light (AES Indiana), NIPSCO and CenterPoint Energy Indiana.
Administered by Indiana Utility Regulatory Commission.
Checked against Indiana Code § 8-1-40 (Distributed Generation) on
Indiana solar property tax deductions — ended
No direct paymentBoth deductions now apply only to property taxes imposed for an assessment date before January 1, 2025, and both sections expire January 1, 2027
The Indiana benefit that almost every solar guide still lists — and it stopped applying to assessment dates from January 1, 2025 under a 2025 law.
When: Applies only to property taxes imposed for an assessment date before January 1, 2025. Sections expire January 1, 2027.
Who qualifies, in full
- Two sections are affected and both were amended by Public Law 68-2025: Indiana Code § 6-1.1-12-26 (solar energy heating or cooling system) and § 6-1.1-12-26.1 (solar power devices, which is the photovoltaic one)
- Each now carries the same limiting language: "This section applies only to property taxes imposed for an assessment date before January 1, 2025," and each "expires January 1, 2027"
- The claim section, § 6-1.1-12-27.1, was amended the same way by the same act and carries both dates as well — so the mechanism for claiming the deduction is closing alongside the deduction
- WHAT IT USED TO DO: § 6-1.1-12-26.1 let the owner of real property equipped with a solar power device deduct the difference between the assessed value with the device and the assessed value without it — in effect making the system add nothing to the assessment
- It was never automatic. § 6-1.1-12-27.1 required a certified statement filed in duplicate with the county auditor "on or before January 15 of the calendar year in which the property taxes are first due and payable"
- The deduction excluded devices owned or operated by a person providing electricity at wholesale or retail for consideration, with carve-outs for customers participating in a net metering or feed-in tariff programme and for site owners consuming the equivalent annual output on site
- NOT VERIFIED HERE: whether a system that qualified for an assessment date before January 1, 2025 continues to receive the deduction for that and earlier years' taxes, and how counties are administering the wind-down. The statutory language limits the section rather than clawing anything back, but county practice was not checked
- NOT VERIFIED HERE: whether Public Law 68-2025 put anything in place of these deductions. The two sections and their claim section were read; the whole act was not
Authority: Ind. Code §§ 6-1.1-12-26, 6-1.1-12-26.1, 6-1.1-12-27.1, each as amended by P.L.68-2025
What we saw: All three sections read from the Indiana General Assembly's 2025 Indiana Code on 2026-07-28. § 6-1.1-12-26.1: "(f) This section applies only to property taxes imposed for an assessment date before January 1, 2025. (g) This section expires January 1, 2027. As added by P.L.137-2012, SEC.15. Amended by P.L.68-2025, SEC.35." § 6-1.1-12-26: "(e) This section applies only to property taxes imposed for an assessment date before January 1, 2025. (f) This section expires January 1, 2027," with the amendment history ending "P.L.68-2025, SEC.34." § 6-1.1-12-27.1: "(b) This section applies only to property taxes imposed for an assessment date before January 1, 2025. (c) This section expires January 1, 2027," amendment history ending "P.L.68-2025, SEC.36." The filing rule in § 6-1.1-12-27.1(a), verbatim: "To obtain the deduction for a desired calendar year in which property taxes are first due and payable, the person must complete, date, and file the certified statement with the county auditor on or before January 15 of the calendar year in which the property taxes are first due and payable." The operative deduction in § 6-1.1-12-26.1(d) was "an amount equal to: (1) the assessed value of the real property with the solar power device included; minus (2) the assessed value of the real property without the solar power device."
Administered by Indiana Department of Local Government Finance and county auditors.
Checked against Indiana Code § 6-1.1-12-26.1 (Solar power devices) on
Federal residential clean energy credit (§ 25D) — 30% of system cost
30% of cost
Dead — the third thing Indiana solar buyers lost in three years, after net metering in 2022 and the property tax deduction from the 2025 assessment date.
Who qualifies, in full
- Terminated by section 70506(a) of Public Law 119-21, enacted July 4, 2025
- An expenditure is treated as made when the original installation is completed, so paying in 2025 for a system finished in 2026 does not qualify
- Unused credit from a system completed on or before December 31, 2025 still carries forward — file Form 5695 with the 2025 return to preserve it
- Listed here because Indiana has no state income tax credit to fall back on: the Department of Revenue's 2025 IT-40 booklet enumerates every credit an individual may claim and mentions neither solar nor energy
- Worth knowing in Indiana specifically: Ind. Code § 8-1-40-23 gives a customer the right to know "the value of all federal, state, or local tax credits or other incentives or rebates that the customer may receive," and the attorney general enforces it. A 2026 pitch still quoting a 30% federal credit to a buyer is misstating exactly what that section requires be stated correctly
Authority: 26 U.S.C. § 25D(h)
What we saw: Read at uscode.house.gov and matched at Cornell LII. § 25D(h): "The credit allowed under this section shall not apply with respect to any expenditures made after December 31, 2025." § 25D(e)(8)(A) treats an expenditure as made when the original installation is completed. § 25D(c) carries excess to the succeeding taxable year; 2025 Instructions for Form 5695 (dated January 22, 2026) state the unused portion carries to 2026 and that the form should be filed even if the credit cannot be used in 2025.
Administered by Internal Revenue Service.
Checked against 26 U.S.C. § 25D, U.S. Code (prelim), Office of the Law Revision Counsel on
Indiana gave solar customers a bill of rights instead of a licensing board
Indiana does not regulate solar installers the way Utah or California do. What it did instead, in the same 2017 act that closed net metering, was write down what a customer is entitled to be told — and hand enforcement to the attorney general.
Under Indiana Code § 8-1-40-23 a customer who produces distributed generation has the right to know: that the attorney general is authorised to enforce the section and to receive complaints; the expected amount of electricity the equipment will produce; all costs of installing it, including any taxes the customer is liable for; the value of all federal, state or local tax credits or other incentives or rebates the customer may receive; the rate at which the customer will be credited for electricity delivered to the utility; whether the provider insures the equipment against damage or loss, and any circumstances in which it does not; and the provider's responsibilities for installing or removing the equipment. The section directs the attorney general, in consultation with the commission, to adopt rules requiring those disclosures in writing.
Read the fourth of those against 2026. The federal residential credit is gone for buyers, Indiana's property tax deduction stopped applying with the 2025 assessment date, and there is no state credit. A salesperson quoting a homeowner "30% federal plus the Indiana property tax break" is misstating precisely the item Indiana law says the customer has a right to have stated correctly.
What changed for Indiana in 2026
Indiana Code §§ 6-1.1-12-26, 6-1.1-12-26.1 and 6-1.1-12-27.1 expire and come out of the code. The deduction itself stopped applying two years earlier; this is the date the text disappears, which matters mainly for anyone trying to look up what the rule used to be.
The federal residential clean energy credit (§ 25D) stopped applying. Indiana has no state income tax credit and no sales tax exemption a household can reach, so from this date the return on an Indiana system rests on avoided electricity cost plus an export rate derived from wholesale prices.
Indiana's solar property tax deductions stopped applying. Public Law 68-2025 amended Ind. Code §§ 6-1.1-12-26 and 6-1.1-12-26.1, and their claim section 27.1, so that each applies only to property taxes imposed for an assessment date before January 1, 2025. All three sections expire January 1, 2027. This is the single most widely mis-reported fact about Indiana solar: guides continue to list the deduction as available.
Ind. Code § 6-1.1-12-26.1, as amended by P.L.68-2025, SEC.35
Net metering closed to new Indiana customers. From this date a supplier may not make a net metering tariff available, and the terms of any earlier net metering tariff expire and are unenforceable except for grandfathered customers. New solar owners since have been compensated for excess distributed generation instead.
The cohort line for grandfathering. Systems installed before this date keep the old net metering tariff until July 1, 2047; systems installed on or after it keep it only until July 1, 2032. Fifteen years of difference turns on which side of one New Year a system was installed.
Senate Enrolled Act 309 created Indiana Code chapter 8-1-40, which set the schedule for closing net metering, defined "distributed generation" as a system owned by the customer, fixed the replacement export rate at the average marginal price of electricity times 1.25, and wrote a customer bill of rights enforceable by the attorney general.
Who is allowed to install solar in Indiana
Indiana does not regulate solar installers through a licensing board the way Utah and California do. What it regulates instead is the sale, and it does so unusually specifically. Indiana Code § 8-1-40-23 gives a customer who produces distributed generation a written list of rights covering the installation and ownership of the equipment: the right to know that the attorney general is authorised to enforce the section and to receive complaints; the right to know the expected amount of electricity the equipment will produce; the right to know all costs of installation including any taxes the customer is liable for; the right to know the value of all federal, state or local tax credits, incentives or rebates the customer may receive; the right to know the rate at which the customer will be credited for electricity delivered to the utility; the right to know whether the provider insures the equipment against damage or loss and under what circumstances it does not; and the right to know the provider's responsibilities for installing or removing the equipment. The same section directs the attorney general, in consultation with the commission, to adopt rules requiring providers to make those disclosures in writing. Separately, § 8-1-40-22 requires a distributed generation customer to comply with standards set by the commission, the supplier, the National Electric Code, the National Electrical Safety Code, the IEEE, Underwriters Laboratories, FERC and local regulatory authorities — which is where the practical requirements for an installer come from in Indiana: the codes and the local authority, rather than a state solar licence.
Check a company yourself: Indiana Attorney General — Consumer Protection Division.
Read from Ind. Code §§ 8-1-40-22 and 8-1-40-23 on .
So are solar panels worth it in Indiana in 2026?
This is the hardest arithmetic of any state on this site, and it is worth being direct about that rather than finding a bright side.
An Indiana homeowner installing today gets no federal credit, no state credit, no sales tax exemption, no property tax deduction, and no net metering. The single remaining benefit is a wholesale-derived export rate with a 25% uplift — which means the entire case now rests on the electricity you generate and consume yourself, valued at whatever your retail rate is.
That is not automatically a bad case. Self-consumption avoids retail cost whatever the export rate does, and a system sized tightly to a household's own daytime usage can still work. But it is a fundamentally different calculation from the one most Indiana quotes were built on, and any payback figure that includes a property tax deduction or net metering is describing a state that stopped existing between 2022 and 2025.
If you already have net metering, the arithmetic is the opposite: what you hold is scarce, transferable with the house, and forfeitable by replacing the system. Guard it.
What this page does not cover yet
Being explicit about the edges is part of the method. Not yet verified, and therefore not claimed here:
- The current excess distributed generation rate at any Indiana utility. Each of the five files an updated rate with the commission by March 1 annually, the figures differ between them, and publishing one would misdescribe the other four. The formula is stated exactly; the values are not.
- Whether Public Law 68-2025 replaced the property tax deductions with anything. We read the two deduction sections and their claim section, not the entire act.
- How counties are administering the wind-down for systems that qualified for an assessment date before January 1, 2025. The statutory language limits the sections rather than clawing anything back, but county practice was not checked.
- Whether an Indiana system's certificates can be sold into another state's market. Indiana has no compliance demand of its own, but a voluntary multi-state registry route is plausible in the PJM and MISO footprints and was not researched.
- Which state agency, if any, licenses solar or electrical contractors in Indiana. The Professional Licensing Agency's own profession list did not render to a plain fetch, and we are not going to infer a negative from a page that failed to load.
- Municipal utilities and rural electric membership corporations. Indiana Code § 8-1-40-4(b) excludes them from the definition of "electricity supplier," so none of the distributed generation chapter applies to them. Each sets its own terms and none were read.
Each of those is queued. When one is verified it will appear above with its own date, and the change will be listed in the record.
Common questions
Does Indiana still have a solar property tax deduction?
No. Public Law 68-2025 amended Indiana Code §§ 6-1.1-12-26 and 6-1.1-12-26.1 — the solar heating and cooling deduction and the solar power device deduction — along with § 6-1.1-12-27.1, the section you claimed them under. All three now provide that they apply "only to property taxes imposed for an assessment date before January 1, 2025," and all three "expire January 1, 2027." Indiana assessment dates fall on January 1, so the deduction stopped applying with the 2025 assessment date. Watch the two dates: the 2027 one is when the text leaves the code, and the 2025 one is when the benefit stopped. Most guides still list this deduction as available.
Does Indiana have net metering?
Not for new customers. Indiana Code § 8-1-40-10 required each utility's net metering tariff to remain available only until the earlier of the January after its enrolled net metering capacity reached 1.5% of its most recent summer peak load, or July 1, 2022. Section 11(b) then provides that after June 30, 2022 a supplier "may not make a net metering tariff available to customers" and that the terms of any earlier net metering tariff "expire and are unenforceable." New solar owners are compensated for excess distributed generation instead. Existing net metering customers were grandfathered, on two different timelines.
How long does my Indiana net metering grandfathering last?
It depends on one New Year's Eve. If you installed before January 1, 2018, you keep the old tariff until July 1, 2047 — the thirty-year grandfather. If you installed on or after that date and before your utility's tariff closed, it runs only to July 1, 2032. In both cases a successor in interest at the same premises may choose to continue on the same terms to the same date, so the benefit can transfer with a house sale. And in both cases the protection ends early if you "remove from the customer's premises or replace the net metering facility" — so replacing the system, not just removing it, forfeits it. Call your utility before any major equipment change.
What does Indiana pay for exported solar now?
A rate set by formula rather than by negotiation. Indiana Code § 8-1-40-17 directs the commission to approve a rate equal to the average marginal price of electricity the supplier paid during the most recent calendar year, multiplied by 1.25. "Marginal price of electricity" means the hourly market price determined by the regional transmission organization the supplier belongs to — so this is a wholesale-derived figure with a 25% uplift, not a retail rate. Each of the five investor-owned utilities files an updated rate by March 1 each year, so the number changes annually and differs between them, which is why this page states the formula rather than a figure. Compensation arrives as a monthly bill credit, and excess carries forward for as long as you keep retail service at that premises.
Does Indiana law treat leased solar differently?
Yes, and the difference is in the definition rather than in a program rule. Indiana Code § 8-1-40-3 defines "distributed generation" as electricity produced by a device that is located on the customer's premises, "owned by the customer," sized at the lesser of one megawatt or the customer's average annual consumption, and interconnected under approved standards. Everything the chapter goes on to do — the utility's duty to procure, the commission-approved rate, the monthly credit — applies to distributed generation as defined. We are stating what the definition says rather than predicting how a particular lease or power purchase agreement would be treated, but if you are being offered a third-party-owned system in Indiana, that clause is the first thing to put to the seller in writing.
Does Indiana have a solar tax credit?
No. The Indiana Department of Revenue's 2025 IT-40 Full-Year Resident Individual Income Tax Booklet runs to fifty-six pages and includes the line-by-line instructions for Schedule 5 (Credits) and Schedule 6 (Offset Credits), which together are the complete set of credits an individual may claim. Across the entire booklet the word "solar" appears zero times, and so does "energy." With the federal § 25D credit also gone for expenditures made after December 31, 2025, an Indiana homeowner buying a system in 2026 receives no tax credit from either government.
Is there a sales tax exemption for solar in Indiana?
Not one a household can use, and the statute rules it out twice. Indiana Code § 6-2.5-5-10.7 exempts tangible personal property that is a component of a solar energy system — but it defines "solar energy system" as a device with an originally rated nameplate production capacity of at least two megawatts, roughly two hundred times a typical home system. And the section opens by stating that it does not apply to property that "will be used to produce energy for the purchaser's residential use, regardless of whether any of the energy produced may be sold to a public utility or power subsidiary." The exemption is written for utility-scale projects and for purchasers who are utilities or power subsidiaries.
Can I sell SRECs in Indiana?
No, not into an Indiana market. Indiana has no renewable portfolio standard, so nothing creates compliance demand for certificates, and the distributed generation chapter deals only in electricity: § 8-1-40-15 requires a supplier to procure "the excess distributed generation produced by a customer" at the commission-approved rate and § 8-1-40-18 pays for it as a bill credit. Nothing in the chapter creates, allocates or contemplates a certificate. We have not researched whether an Indiana homeowner could register a system with a voluntary multi-state registry and sell into another state's compliance market — that is plausible in the PJM and MISO footprints and we say so rather than ruling it out.
What is an Indiana solar company legally required to tell me?
More than most states require, and the attorney general enforces it. Indiana Code § 8-1-40-23 gives a customer who produces distributed generation the right to know: that the attorney general may enforce the section and receive complaints; the expected amount of electricity the equipment will produce; all costs of installation including any taxes the customer is liable for; the value of all federal, state or local tax credits, incentives or rebates the customer may receive; the rate at which the customer will be credited for electricity delivered to the utility; whether the provider insures the equipment and any circumstances in which it does not; and the provider's responsibilities for installing or removing it. The attorney general is directed to adopt rules requiring those disclosures in writing. In 2026 the fourth of those is the one to press: there is no federal credit for buyers, no state credit, and no property tax deduction.
What if my power comes from a municipal utility or an REMC?
Then none of Indiana's distributed generation chapter applies to you. Indiana Code § 8-1-40-4(b) excludes municipally owned utilities and corporations organized under IC 8-1-13 from the definition of "electricity supplier," which is the term every operative section of the chapter turns on. Those utilities set their own terms for solar customers, and none of them were read for this page — so ask yours directly what it pays for exported electricity and whether it offers anything resembling net metering before you commit to a system size.
Are solar panels worth it in Indiana in 2026?
This is the hardest arithmetic of any state on this site. An Indiana homeowner installing today gets no federal credit, no state credit, no sales tax exemption, no property tax deduction and no net metering — the deduction stopped applying with the 2025 assessment date and net metering closed after June 2022. What remains is an export rate derived from wholesale prices with a 25% uplift, which means the case rests almost entirely on electricity you generate and use yourself at your own retail rate. A system sized tightly to daytime household consumption can still work. Any quote whose payback figure includes the property tax deduction or net metering is describing an Indiana that stopped existing between 2022 and 2025. And if you already have net metering, what you hold is scarce, transfers with the house, and is forfeited if you replace the system.
Primary sources
Every one of these was opened and read on the date shown. None of it is copied from DSIRE, EnergySage, or any other aggregator.
- Indiana Code § 8-1-40 (Distributed Generation) read July 28, 2026
- Indiana Code § 6-1.1-12-26.1 (Solar power devices) read July 28, 2026
- 26 U.S.C. § 25D, U.S. Code (prelim), Office of the Law Revision Counsel read July 28, 2026