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Indiana Solar Calculator

Enter your utility and monthly bill — get system size, EDG export analysis, sales tax exemption, property tax savings, and 25-year savings for your Indiana home.

Your Indiana solar inputs
$
kW
Indiana solar estimate
20 × 400W panels (8 kW system)
Recommended size for your bill: 10.7 kW
Monthly usage1,071 kWh/mo
Annual production (IN 4.2 PSH)9,811 kWh/yr
Annual savings (EDG program)$1,020/yr
Gross system cost$22,880
Federal ITC (30%)-$6,864
Sales tax exemption (7%)-$1,602
Net cost after incentives$14,414
Property tax exemption (est.)$3,661
Payback period14.1 yrs
25-year savings$25,509
Indiana uses the EDG (Excess Distributed Generation) program — NOT net metering. Exported solar is credited at 125% of avoided cost (~$0.05/kWh), far below retail rate. Maximize self-consumption: solar used directly is worth your full retail rate. Battery storage significantly improves Indiana solar economics.
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How to Use This Calculator

Enter your bill and select your Indiana utility

Indiana has five major investor-owned utilities: AES Indiana (Indianapolis, $0.14/kWh), CenterPoint Energy Indiana ($0.13/kWh), Duke Energy Indiana ($0.12/kWh), Indiana Michigan Power (I&M, $0.13/kWh), and NIPSCO (northern Indiana, $0.12/kWh). Select your utility to use the correct rate. Enter your average monthly bill and planned system size in kilowatts.

Understand Indiana's EDG program — not net metering

Indiana eliminated traditional retail-rate net metering in 2022. Indiana utilities now use the EDG (Excess Distributed Generation) program, which credits exported solar at 125% of the utility's avoided cost — approximately $0.05/kWh, far below the retail rate of $0.12-0.14/kWh. This fundamentally changes the economics of Indiana solar: self-consumed solar is worth full retail rate; exported solar is worth much less. The calculator reflects this in the savings calculation.

Indiana's sales tax exemption applies to equipment

Indiana exempts solar equipment from the state's 7% sales tax. On a $25,000 system, this saves approximately $1,750 upfront — a meaningful incentive that reduces the cost basis before the ITC is applied. The calculator includes this exemption in the net cost calculation. Indiana has no state income tax credit for solar.

The Formula

Monthly kWh = Monthly Bill ÷ Electricity Rate Annual Production = System kW × 1000 × 4.2 PSH × 365 × 0.80 efficiency ÷ 1000 Self-consumed kWh = Annual Production × 0.60 Exported kWh = Annual Production − Self-consumed kWh Annual Savings = (Self-consumed × Retail Rate) + (Exported × $0.05 EDG Rate) Gross Cost = System kW × 1000 × $2.86/W + Battery ($12,000 if added) Sales Tax Saving = System Hardware Cost × 7% ITC Credit = Gross Cost × 30% Net Cost = Gross Cost − ITC Credit − Sales Tax Saving Payback = Net Cost ÷ Annual Savings

Indiana averages 4.2 peak sun hours — Indianapolis gets 4.3 PSH, Fort Wayne 4.1, and Evansville 4.5 (best in the state, near the Kentucky border). The EDG rate of ~$0.05/kWh for exports is the critical factor in Indiana solar economics. A 60% self-consumption ratio is typical for Indiana homes; adding battery storage can push this to 80-90%, substantially improving payback. Indiana property tax exemption covers 100% of added solar value.

Example

Mike — Indianapolis AES Indiana customer

Mike lives in Indianapolis on AES Indiana paying $150/month at $0.14/kWh. He is evaluating an 8 kW system without battery.

Monthly bill$150 (AES Indiana, $0.14/kWh)
System8 kW, no battery
LocationIndianapolis, IN (4.3 PSH)

Result

Annual production~9,820 kWh/yr
Annual savings (EDG)~$870/yr
Gross system cost~$22,880
Federal ITC (30%)-$6,864
Sales tax exemption (7%)-$1,602
Net cost after incentives~$14,414
Payback period~16.6 years
25-year savings~$21,750

Indiana's EDG program significantly extends payback compared to states with retail net metering. Mike can improve his economics by adding battery storage to increase self-consumption from 60% to ~85% — reducing exports at the low EDG rate and using more solar directly at the full $0.14/kWh retail rate. Battery addition adds cost but improves long-term economics given Indiana's low export credit.

FAQ

Indiana's Excess Distributed Generation (EDG) program replaced traditional net metering in 2022. Under the old net metering, exported solar was credited at your full retail electricity rate (e.g., $0.14/kWh). Under EDG, exported solar is credited at 125% of the utility's avoided cost — the cost the utility would pay to buy power on the wholesale market. This avoided cost is approximately $0.04/kWh, so 125% = ~$0.05/kWh. Since retail rates are $0.12-0.14/kWh, the EDG credit is roughly one-third of retail. This makes maximizing self-consumption the top priority for Indiana solar economics.
No. Indiana does not have a state income tax credit for residential solar installations. Indiana's primary state-level incentives are the 7% sales tax exemption on solar equipment and the 100% property tax exemption on the added value of solar systems. The 30% federal ITC applies to all Indiana residents. Some Indiana utilities and co-ops have offered rebates historically — check with your specific utility for current programs.
Indiana exempts solar energy system equipment from the state's 7% sales tax. This exemption applies to solar panels, inverters, mounting hardware, and wiring — the major components of a solar installation. On a $20,000 hardware cost, this saves approximately $1,400. Your solar installer typically handles the exemption certificate — you do not need to file a separate claim. This savings is realized upfront at the time of purchase and reduces your initial out-of-pocket cost before the ITC is applied at tax time.
Solar in Indiana requires a strategic approach. With EDG export rates at ~$0.05/kWh, the key is maximizing self-consumption — solar energy used directly in your home is worth full retail rate ($0.12-0.14/kWh), which is 2-3x the EDG export credit. Strategies to maximize Indiana solar value include: (1) Add battery storage to store daytime production for evening use; (2) Run high-consumption appliances (dishwasher, laundry, EV charging) during daylight hours; (3) Size the system to match consumption rather than over-size it, since excess production has low value under EDG. Despite longer payback periods, Indiana solar still generates positive 25-year returns with ITC and sales tax exemption.
Indiana averages 4.2 peak sun hours (PSH) statewide — less than southern states but sufficient for productive solar. Evansville in the south gets ~4.5 PSH (best in Indiana), Indianapolis gets 4.3 PSH, and Fort Wayne and South Bend in the north get ~4.0-4.1 PSH. Indiana's cloudy winters (especially northern Indiana near Lake Michigan) reduce winter production, but summer production is strong. South-facing roofs with steep pitch (30-35 degrees) optimize for Indiana's latitude. Net production is still excellent — an 8 kW system in Indianapolis produces approximately 9,800 kWh/year, offsetting a significant portion of a typical Indiana home's 10,000-12,000 kWh annual usage.

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📈 Solar Savings Calculator
25-year savings projection with utility rate escalation.

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