Solar panels in Indiana: cost, payback and the rules that matter
Indiana homes pay 17.0¢ per kWh for electricity, the 20th highest of 51, up 7.4% in a year. A typical home needs 21 panels. With no federal tax credit they pay for themselves in about 13.5 yrs.
Four facts that decide solar in Indiana
1. The sun. One kilowatt of panels makes about 1,294 kWh a year in the median Indiana city, from 1,244 in South Bend to 1,333 in Evansville.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 17.0¢ in Indiana today.
3. What your utility pays for exports. Most Indiana utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in Indiana.
Indiana's homes
2,716,009 households; 70.6% own their home. 1,815,940 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1976; 31.2% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific Indiana home
Solar in every Indiana city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Indianapolis | 4.5 | 1,294 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Fort Wayne | 4.4 | 1,271 | 35° | 8.8 | 13.7 yrs | 22.2 yrs | 12.2 |
| Evansville | 4.7 | 1,333 | 34° | 8.4 | 13.1 yrs | 21.5 yrs | 11.7 |
| Carmel | 4.5 | 1,295 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Fishers | 4.5 | 1,294 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| South Bend | 4.3 | 1,244 | 35° | 8.8 | 14.0 yrs | 22.4 yrs | 12.5 |
| Bloomington | 4.6 | 1,290 | 34° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Noblesville | 4.5 | 1,295 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Hammond | 4.4 | 1,271 | 36° | 8.8 | 13.8 yrs | 22.6 yrs | 12.3 |
| Lafayette | 4.5 | 1,307 | 35° | 8.4 | 13.4 yrs | 21.4 yrs | 11.9 |
| Greenwood | 4.5 | 1,292 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Gary | 4.4 | 1,268 | 35° | 8.8 | 13.8 yrs | 22.6 yrs | 12.3 |
| Westfield | 4.5 | 1,296 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Muncie | 4.5 | 1,292 | 35° | 8.8 | 13.5 yrs | 22.0 yrs | 12.0 |
| Kokomo | 4.5 | 1,298 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Terre Haute | 4.6 | 1,315 | 35° | 8.4 | 13.3 yrs | 21.7 yrs | 11.8 |
| Anderson | 4.5 | 1,294 | 35° | 8.8 | 13.5 yrs | 22.0 yrs | 12.0 |
| Jeffersonville | 4.6 | 1,298 | 34° | 8.8 | 13.4 yrs | 21.9 yrs | 12.0 |
| Elkhart | 4.3 | 1,245 | 35° | 8.8 | 14.0 yrs | 22.4 yrs | 12.5 |
| Columbus | 4.5 | 1,292 | 34° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
| Mishawaka | 4.3 | 1,244 | 35° | 8.8 | 14.0 yrs | 22.4 yrs | 12.5 |
| Lawrence | 4.5 | 1,294 | 35° | 8.8 | 13.5 yrs | 21.9 yrs | 12.0 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the Indiana average home. $3.00/W, cash, 25 years.
Rule changes that affect Indiana
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
Questions about solar in Indiana
How much do solar panels cost in Indiana?
A 8.8 kW system, the size the average Indiana home needs, costs about $22,000 to $33,000 before incentives in 2026.
Is solar worth it in Indiana?
In the median Indiana city, solar pays for itself in about 13.5 yrs if exported power earns the retail rate, or 21.9 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in Indiana?
We know of no statewide income-tax credit for home solar in Indiana; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a Indiana home need?
About 21 panels of 420 watts for the state-average 901 kWh a month. Sunnier cities need fewer: Evansville gets 1,333 kWh per kW a year, South Bend 1,244.