Top 5 Solar Companies in indiana

Despite some unfavorable weather conditions during the winter and the lack of certain state-level incentives, Indiana is on its way to becoming a viable home for solar power. With solar costs plummeting nationwide, and the price of electricity steadily increasing every year, residents of the Hoosier State should definitely consider making the switch. That said, going solar in Indiana may not be as immediately cost-effective as it is in other states.

Beyond the climate, Indiana enjoys a number of favorable solar incentives and pro-solar policies designed to not only maximize solar adoption, but to also establish a 100 percent renewable energy portfolio by 2050.

• Pros and Cons of Going Solar in Indiana
• Cost of Solar in Indiana
• Indiana Solar Financing Options
• Indiana Solar Incentives
• Indiana Solar Policy Information
• Indiana Solar Statistics

Read on to learn more about the ins and outs of going solar in Indiana.

Pros and Cons of Going Solar in Indiana

Here's an at-a-glance description of the current benefits and drawbacks of switching to solar in Indiana:

Benefits of Going Solar in Indiana:

• 30% Federal Tax Credit
• Decent Net Metering Policy
• Statewide Interconnection Rules
• State Tax Exemptions

Drawbacks of Going Solar in Indiana:

• Long Payback Period
• No Solar Lease or PPA Options
• Weak RPS
• No Solar Carve-Out
• No State-Level Rebate Program or Credits

Cost of Solar in Indiana

The typical cost of a solar power system in Indiana can range anywhere between $10,000 and $21,000 — with a 5 kW solar array coming in at the higher end of that range. This is in large part due to the affordable energy costs currently in place within the state; in other words, going solar in Indiana will likely require a major cash investment for minor utility bill savings.

Over time, however, the levelized cost of solar is still significantly lower than traditional electricity, at 6 cents versus 21 cents per kWh respectively. Going solar in Indiana, therefore, represents a long-term investment with significant returns not occurring until almost two decades into the future.

Indiana Solar Financing Options

Unfortunately, Indiana residents only have two financing options available to them in the state in the form of cash purchase and financing through a solar loan. The low-cost, low-risk options of solar leases and power purchase agreements are not currently available in Indiana.

Outright Purchase

As mentioned above, the upfront costs of financing a solar PV system oneself, can be incredibly high, as much as $21,000 or more for a simple 5 kW system. For context, a comparable system capacity in California goes for around $15,500.

Outright purchase of a solar energy system in Indiana does qualify buyers for the federal solar tax credit, worth 30 percent of the system cost. That, coupled with the first year’s energy savings can reduce the total cost of the system to a little less than $15,000, still a great sum, but much more manageable. With current energy rates projected to increase over time, solar panel owners could expect to have their systems pay themselves off after roughly 18 years, and from that point on will see about $1,000 in utility savings annually. Unfortunately, they’ll only be able to enjoy these savings for about seven or so years, or the projected end of the system’s 25-year lifespan.

Solar Loan

Another path toward solar ownership in the state is financing a solar panel system through means of a solar loan, which eliminates the enormous upfront cost, while also qualifying borrowers for important federal tax credits.

That, unfortunately, is where the benefits of a solar loan ends in Indiana. Borrowers could potentially wait 20 years or more for their solar energy systems to generate income.While the savings upfront are important, they will only last a few years before homeowners find themselves spending more in loan payments than they otherwise would on their monthly electric bill — even after the loan is paid off, customers will need a couple of years to recoup their savings. 

Indiana Solar Incentives

To make matters worse, Indiana does not have any state-level tax credits, solar rebates, or SRECs. That said, Indiana does apply tax exempt status to solar panel systems in two contexts:

Property Tax Exemption

Solar panel systems in Indiana are 100 percent exempt from taxation for any value they add to the home over the course of 25 years, which can be worth thousands of dollars.

Sales Tax Exemption

The equipment — solar panels, inverters, racking gear and other roof attachments, etc. — are likewise exempt from sales tax, a massive savings boon for solar buyers given the tens of thousands of dollars they’ll need to pony up to afford their systems.

Indiana Solar Policy Information

But not all news is bad news relating to solar in Indiana. Thanks to some favorable solar policies, customers could begin to see attitudes and access shift toward greater solar adoption in the state.

Renewable Portfolio Standard (RPS)

A renewable portfolio standard or RPS attributes a set percentage of the state’s energy output to renewable sources like solar and wind and fixes a deadline. In Indiana, it’s only 10 percent renewable energy by 2025. Under normal circumstances, utility companies would be penalized financially for failure to comply with the state’s mandated RPS, but in Indiana’s case, the RPS is purely voluntary, meaning utility companies have little incentive to adopt solar or any other alternative fuel source like natural gas into their portfolios. It’s a step in the right direction, but unless this standard becomes required across the state, Indiana will likely see little solar adoption over time.

Net Metering

Thankfully, Indiana does have an adequate net metering policy in place in the form of a statewide mandate requiring utility companies to credit solar users for the excess power their systems pump into the energy grid. Unfortunately, this policy only applies to systems under 10 kW capacity, but a good start all the same.

Interconnection Rules

Similar to the net metering policy, Indiana’s interconnection rules — a set of standards solar owners must meet prior to their systems’ integration into the grid — apply state wide and only to systems under 10 kW. That said, the rules do not appear to assess fees or require additional insurance in order for solar panel systems to qualify.

Indiana Solar Statistics

As of 2020, Indiana has installed more than 450 megawatts of solar energy and over 3,600 solar installations across the state, enough energy to power almost 54,000 homes. Only 77 solar companies operate in Indiana, but those companies employ over 3,000 people. 

Solar growth in the state is projected to rise to more than 1,700 of clean energy over the next five years.

Interested in a solar quote? Check out the top-ranked solar companies in Indiana and read reviews from verified solar customers.

Sources

• solarpowerrocks.com/indiana/
• solarreviews.com/solar-panels/indiana
• seia.org/state-solar-policy/indiana-solar
• solar-nation.org/indiana
• solaractionalliance.org/solar-panel-installation/indiana/

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