Solar Energy Incentives in Indiana: What’s Available in 2025 and Beyond

As the demand for sustainable energy continues to grow, Indiana homeowners and businesses are turning to solar power as a viable way to save money and reduce environmental impact. 

While the initial investment in solar energy can seem daunting, various incentives are available to make the transition more affordable.

Federal Solar Tax Credit

The federal Investment Tax Credit (ITC) remains one of the most significant incentives for solar installations. In 2025, the ITC allows homeowners and businesses to deduct 30% of the cost of installing solar panels from their federal taxes. 

This incentive applies to the total cost, including equipment, labor, and permitting fees. While this rate is set to decrease in the coming years, installing your system in 2025 ensures maximum savings.

Net Metering in Indiana

Indiana transitioned from traditional net metering to a net billing model, but homeowners and businesses can still benefit by selling excess energy back to the grid. 

Under this arrangement, solar panel owners receive credits for surplus electricity their systems produce, which helps offset energy costs during periods of lower solar production.

Renewable Energy Property Tax Exemption

Indiana provides a property tax exemption for solar energy systems, meaning installing solar panels will not increase your property taxes despite potentially boosting your home’s value.

This exemption helps homeowners enjoy the financial benefits of solar without worrying about additional tax burdens.

Sales Tax Exemption

While solar energy systems are not automatically exempt from state sales tax, they can be exempt if they are purchased by a business that qualifies for tax exemption and can provide the necessary tax-exempt documentation.

Another scenario where a solar system may be exempt is if it is installed as part of a for-profit operation.

Indiana-Specific Solar Rebates

While statewide rebates for solar installations are limited, some utility companies in Indiana offer their own incentives to encourage renewable energy adoption. Programs may vary by your location, so check with your utility provider to explore rebate opportunities.

Federal Energy Programs

Businesses, farms, and nonprofits in Indiana can take advantage of federal programs like the USDA’s Rural Energy for America Program (REAP). This initiative provides grants and loans to support renewable energy installations, including solar systems.

Potential Changes To Watch

The renewable energy landscape is always evolving. With ongoing discussions about energy policy at both state and federal levels, Indiana residents should stay informed about potential new incentives or changes to existing ones. 

Advocacy for renewable energy could lead to expanded opportunities for savings in the years ahead.

The Long-Term Benefits of Going Solar

Beyond the immediate financial incentives, solar energy offers long-term benefits. Reduced electricity bills, increased property value, and a lower carbon footprint are just a few reasons why Indiana residents are choosing to go solar. 

With these solar energy incentives in Indiana, the path to energy independence is more accessible than ever.

Partner with Advanced Solar

Navigating the world of solar incentives can be complex, but you don’t have to do it alone. At Advanced Solar, we’re committed to helping you make the most of available incentives while designing a system tailored to your needs. 

Contact us today to learn more about how you can save with solar in 2025 and beyond!