Solar Panels in Indiana: Cost, Savings, and Rebates

hand holding a toy house next to Delaware state flag and panels under the sun

Solar Panels in Indiana: Cost, Savings, and Rebates

If you were to consider the best states for solar energy in the United States, Indiana wouldn’t probably make the cut. However, Hoosier State has plans to install over 8,000MW in the next five years, the 5th highest projection in the country. With growing state-level support for solar power and some of the lowest rates on equipment, homeowners should consider solar panels in Indiana.

Not sure where to start budgeting for an installation or what incentives exist? Don’t worry. Our handy guide covers important numbers, including average costs, appropriate wattage, and potential savings. Continue reading to learn about solar in Indiana.

Average Cost of Solar Panels in Indiana

While Indiana has notoriously cloudy weather, Hoosiers shouldn’t sleep on solar energy. The Crossroads of America features some of the lowest average prices on panels at a rate of about $2.49/W. This works out to about $14,940 for a 6kW system. You won’t find a base price that low anywhere in the country.

Unsure if the move to Solar is worthwhile? We’ll compare the solar panels cost in Indiana to the typical electricity bill to see if a switch is worth it. In Hoosier State, homeowners pay about $128.04 a month to power their households. That’s $6 more than the national average of $122/mo. So, yes, Hoosiers should consider installing a solar array.

If you appreciate this good news, it’s going to get a little better. Those looking to switch to renewable energy can receive a 30% federal solar tax return. The incentive comes in the form of a credit on federal taxes for any purchases toward an array. This would lower the cost of a 6kW system from $14,940 to $10,458.

How Much Solar Do Hoosiers Need?

save money on solar panels in georgia
A residential solar system typically produces 7.4kW an hour in Pennsylvania.

The average cost of solar panels in Indiana might not accurately reflect what a typical household needs. To determine your home’s wattage, you’ll need to divide your daily usage by average peak sunlight. We’ll show you how to do that using Indiana’s averages.

Indiana residents typically use about 31.3kWh a day (938kWh a month). When we divide that by Indiana’s standard peak sun of 4.21 hours a day, a typical solar panel system should produce 7.4kW an hour. With a typical rate of 2.49/W, this array would cost around $18,426 before incentives. 

You can do this simple math for your own home. Costs vary with geography. Try to find the average peak sun for your nearest city using this Indiana sun chart.

Indiana Solar Cost Factors

The size of solar panels in Indiana, geography, and sunlight all determine the final price of an array. In the Hoosier State, those living closer to the Great Lakes may experience more cloud cover than those living further south. For more examples of how geography and peak sun can affect the cost, compare Indiana to its neighboring states:

Because of Iniana’s questionable weather and varying geography, it’s advisable to consider the type of solar panels in your array. Homeowners living more north might want to invest in monocrystalline panels for their high energy efficiency. However, those living further south could take advantage of the more affordable polycrystalline models.

Finally, you’ll want to take your time identifying the best Indiana solar installers. Some companies might undercut competitors to save homeowners money, but it’s important to consider their quality and longevity. Because the solar industry is still developing in Hoosier State, you’ll likely have few options. While this helps eliminate poor companies, you might have to resort to a national company.

Best Indiana Solar Installers

When suggesting solar panel companies in Indiana, we refer to EnergySage. The review platform has endorsements from SEIA and the US Department of Energy and utilizes rigorous pre-screening to provide only the best companies in the industry. According to EnergySage, a solar installer should have the following:

  • Plenty of solar experience
  • Proper licenses and certifications
  • Contractor transparency
  • Quality equipment and warranties

As one of the top home improvement companies in Indiana, Bone Dry is leading the way in solar installation. The family-owned business has 30 years of roofing experience and introduced its new solar division in 2022. While it’s still young, the division is backed by highly experienced directors and technicians. With their previous reputation and industry-standard warranties, Bone Dry will expertly take care of your solar array.

However, if you’re not keen on going with a new company, you might want to consider YellowLite. While the installers aren’t Indiana-based, they serve most of the states in the Midwest. YellowLite has 14 years of industry experience and accolades from Solar Power World. They offer an extensive list of quality equipment and warranties to cover your solar panel system for its lifetime.

Can Solar Energy Save Hoosiers Money?

save money on solar panels in georgia
PA homeowners can save upwards of $15,000 over the lifespan of a solar system.

With higher-than-average electricity rates and a low average cost of solar panels, homeowners in the Hoosier State could see decent returns on utility payments. The average annual electrical bill is $1,536.04 ($128.04/mo), which Hoosiers could pay off a 6kW array in 9.7 years. This is on the quicker end of the spectrum across the United States.

After covering the cost of your solar panel system using the offset from electricity bills, you’ll start to see net returns. With solar panels in Indiana lasting for 20-25 years (average lifespan), homeowners could discover $15,821 to $23,501 or more in savings. In addition to reducing your carbon footprint, an extra $20,000 isn’t bad!

Solar Panels in Indiana: Rebates, Credits, and Incentives

Credit: Altair Solar

In addition to the affordable, up-front cost of solar panels in Indiana, Hoosiers are in the midst of developing state-level support for renewable energy. From federal incentives to state tax exemptions, homeowners have options to save even more money on an installation. Using the federal solar tax credit alone can reduce the price of an array by nearly $4,500.

Indiana has a voluntary renewable portfolio standard. This means that while municipalities aren’t necessarily motivated to offer solar benefits, there’s definitely a movement for future investment. To learn about Hoosier State’s existing and potential incentives, read through these Indiana solar programs.

Solar Panels in Indiana: Further Reading

It’s easy to dismiss the idea of investing in solar panels in Indiana because of its considerable cloud cover, much less imagine any benefit of making the switch. However, with some of the lowest rates on solar equipment and growing state-level support for locals, investing in Solar in the Hoosier State seems to make sense. For more on Indiana’s views on emerging technology, check out the articles below.

Frequently Asked Questions

Is solar worth it in Indiana?

With some of the lowest rates on solar panels and growing state-level support for renewable energy, homeowners could save over $20,000 with an installation.

How much does solar cost in Indiana?

In the Hoosier State, homeowners will typically pay about $2.49 a watt for solar panels. This equals about $14,940 for a 6kW system.

How long does it take for solar panels to pay back in Indiana?

With an average annual electricity bill of $1,536.04, Hoosiers could use the offset to pay for a 6kW system in 9.7 years.

Can you get a federal tax credit for solar panels in Indiana?

Qualifying homeowners in Indiana could take advantage of the federal solar tax credit to see a return of 30% on any solar purchases. Some may discover savings of nearly $4,500.

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