How Much Do Solar Panels Cost in Indiana? (2024 Savings Guide)

In this guide on the cost of solar panels in Indiana, you’ll learn:

  • What the average cost of going solar in The Hoosier State is
  • How Indianans can save money when going solar
  • Which local installation companies have the best prices
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Solar is generally an outstanding option in Indiana. Although the state sees fewer sunny days than most others, the above-average energy consumption in the area means solar energy production can offset higher electric bills, leading to greater solar system value. Most residents see solar savings that pay off their systems in just 13 years and then enjoy additional savings totaling $25,365 on average.

One of the few barriers to beginning the process of converting to solar in Indiana is the cost. In this guide, we’ll be discussing the cost of solar panels in Indiana to help you decide whether or not you can afford to convert to renewable energy and calculate how much you can expect in savings.

What Will Your Solar Panel System Cost in Indiana?

On average, solar equipment in Indiana costs around $3.66 per watt. Since residents have above-average needs, they also need systems that are larger than average, usually around 9.5 kilowatts (kW).

At $3.66 per watt, that’s an overall cost of $34,770 before any perks or $24,339 after the federal investment tax credit (ITC).

Your cost to go solar in Indiana can vary quite a lot based on a number of factors, some of the most significant of which are your home size and your monthly energy consumption. We’ll include some typical system size requirements and conversion costs based on these factors in the table below.

Solar System Size Energy Use (per month) House Size (sq ft) Total Cost Cost After the Federal ITC  Energy Savings (over 25 years, after system is paid off)
7 kW 700 kWh 1,500 $25,620 $17,934 $12,516
8 kW 800 kWh 1,700 $29,280 $20,496 $14,304
9 kW 900 kWh 1,900 $32,940 $23,058 $16,092
10 kW 1,000 kWh 2,100 $36,600 $25,620 $17,880
11 kW 1,100 kWh 2,300 $40,260 $28,182 $19,668
12 kW 1,200 kWh 2,500 $43,920 $30,744 $21,456
13 kW 1,300 kWh 2,700 $47,580 $33,306 $23,244
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Blue Raven Solar

Best Solar Financing

Regional Service

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Read full review now

Pros

  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation

Cons

  • Doesn't offer solar batteries (coming 2022)
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Icon Solar

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How Do Indiana’s Solar Prices Compare to the National Average?

The typical cost for solar equipment in Indiana on a per-watt basis — $3.66 — is well above the national average of $3.33. This means that your money doesn’t buy quite as much system in Indiana as it would in other states, at least on a watt-per-dollar basis.

The actual cost of a complete solar system in Indiana is even further above the national average because residents have higher monthly energy needs, which means they require larger and more expensive systems — 9.5 kW as opposed to the 9 kW average in America.

The all-in cost to convert to solar in Indiana of $34,770 before tax credits is more than $5,000 higher than the national average of $29,970. After the federal credit, the typical costs are $24,339 in Indiana and $20,979 in the U.S. overall, a difference of close to $4,000.

What Are the Main Factors of Solar System Costs in Indiana?

plenty of solar panels installed on a house roof

Average solar conversion costs aren’t always going to be accurate for everyone because the actual price of your photovoltaic (PV) equipment can vary quite a lot based on multiple factors. Some of the more influential factors include the following:

  • The above-average energy consumption
  • The efficiency and performance of your solar panels
  • The value of solar batteries in Indiana

We’ll explain how each of these cost factors can affect the cost of your solar array in the following sections.

The High Energy Demands in Indiana

Since solar equipment in Indiana costs about the same as it does in most states, one of the biggest reasons total system prices are higher is that residents need larger systems to offset their high energy demands.

According to the Energy Industries Association (EIA), residents in the Hoosier State consume around 938 kilowatt-hours (kWh) per month, which is quite a bit higher than the national average. As such, homeowners in the area need to upsize their systems to accommodate and offset the excess energy consumption.

Most residents need an additional 500 watts of solar equipment, and since most home solar panels are around 400 watts, that means two additional panels are usually required to meet local energy needs. On average, you’ll likely pay between $1,500 and $2,000 more in Indiana.

We do recommend installing a system that’s larger than you need to ensure you continue to maximize your savings, especially since panels degrade and lose efficiency over time.

The Inclement Weather in Indiana

Another big reason solar system totals tend to be above average in Indiana is that the state sees well below the average number of sunny days in the country.

With just 186 sunny days annually — compared to the national average of 205 — Indiana residents need to make the most of the sunlight that is available to maximize solar savings. One of the best ways to do that is by investing in high-efficiency, monocrystalline panels rather than less efficient polycrystalline panels.

Panel brands with above-average efficiency ratings will almost always cost more than the average on a per-watt basis, which drives up your solar panel installation costs. However, high-performance panels are far more likely to provide greater savings over time, as they have a better chance of eliminating your electric bills or significantly reducing your effective electricity rates.

We do strongly suggest choosing a high-efficiency panel brand, like Maxeon, which is the most efficient brand in the entire solar industry. These panels are especially helpful in an area like Indiana with below-average sun availability. Ultimately, this could save you thousands on your utility bills in the long run.

The Wholesale Net Metering Policy and the Need for Solar Batteries

Finally, the State of Indiana mandates net metering, which is an outstanding solar perk. Basically, it lets you overproduce electricity with your solar energy system and “bank” the excess energy. That excess solar power can offset your energy usage and deliver free electricity even when the sun isn’t shining.

While Indiana does mandate net energy metering for all residents, the rate at which electric companies must credit customers for excess power sent to the grid isn’t set. As such, most power providers use a wholesale rate or avoided-cost rate, which makes it less likely that customers are able to eliminate their energy bills.

However, solar customers that couple their panels with batteries — a somewhat popular option, given the frequency of power outages in the area — get access to effective net metering, and all of the stored excess energy can be used to offset consumption at a one-to-one rate.

Solar batteries are convenient to have in black-out-prone areas, and they could end up saving you some money on your energy bills in Indiana as well. However, they will drive up the cost of converting by an average of around $10,000, so they play a fairly significant role in all-in solar conversion costs.
Watch Below: Is Going Solar Worth It?

Additional Costs of Going Solar in Indiana

Solar panels themselves make up the bulk of the costs associated with converting to renewable energy, but there are some other charges that you might need to consider as well to get a more accurate idea of your system pricing. We’ll include a quick breakdown of possible additional costs below.

  • Building permits: All municipalities in Indiana require that building permits be pulled before solar equipment can be installed on your property. Building permits often come with a filing cost of between $25 and $300 in Indiana, with the specific cost depending on the city you live in and the specific equipment you’re installing. The application for permits should be filed by your solar panel installer, but the charges are usually passed on to you.
  • Additional solar equipment: Most solar customers think about the major equipment costs when going solar, including the panels and batteries. While those do make up the majority of the equipment costs, you could also be charged separately for inverters, wiring, conduit and racking systems and hardware. These usually only total a few hundred dollars at most in Indiana. Squirrel guards are sometimes an add-on service and could add around $100 or so to your installation costs.
  • Interconnection fees: All electric companies in Indiana require an interconnection application and inspection to be completed before your system can be activated and connected to the grid. Many power companies in the state charge an application fee — often between $25 and $150 — which is typically handled by your installer but passed on to you in your invoice.
  • Product markup and administration fees: Many solar panel installation companies will mark up the equipment they install, which can lead to a difference of hundreds of dollars in your final pricing compared to other companies. Some installers also charge administration fees for things like filing building permits and interconnection applications. In most cases, these fees combined will only total a few hundred dollars.

What Maintenance Costs Can Solar Owners Expect in Indiana?

While the upfront cost of solar panels in Indiana is quite high, the ongoing maintenance costs are more or less non-existent. Most of the repairs or issues with performance you’ll run into will be covered by your solar panel warranty, which usually covers manufacturer defects for 25 years and panel production for 20 to 25 years.

Some solar customers pay for panel washing services, which can help boost efficiency by removing debris on the panels’ surface. This service typically costs between $100 and $150 one to two times per year. However, the above-average rainfall in Indiana should be plenty to keep your panels clean and maintain high power production rates.

Which Solar Financing Options Will Help You Save the Most in Indiana?

The payment options you have available to you in Indiana will depend on your chosen installer, but the four primary options are cash, a solar loan, a solar lease and a power purchase agreement (PPA).

Cash purchases cost the most upfront, but paying in cash for your system means you’ll own your panels immediately and won’t pay any interest. That means the lowest possible system prices in the long run and the highest energy savings over time.

A solar loan is a more accessible payment option since it usually requires no down payment and lets you pay small amounts monthly for your PV equipment. However, loans come with interest, which will not only cut into your solar savings but also push up your all-in system price.

Neither leases nor PPAs let you take the federal tax credit, which holds an average potential value of over $10,431 in Indiana. That’s a significant downside that cash and loans don’t have.

Leases and PPAs also save you much less over time on your utility bills, and they can make selling your home complicated depending on your lessor and what the new owner wants to do with the system after closing. Leases and PPAs require no down payment and minimal credit requirements, though, so they’re the most widely accessible options. They also sometimes come with longer warranties or free panel maintenance.

If you want to keep your payment options open in Indiana, we recommend checking out SunPower or Tesla. Both companies operate in the Hoosier State and accept all four payment options.

You can also use our solar calculator to estimate your installation costs to see which payment options you can afford. You can then use the table below to choose the one that works best within your budget.

Financing Method Total 25 Year Savings (estimated) Initial Costs (estimated, after the federal tax credit) Monthly Payments (estimated) Payback Period (estimated)
Cash $25,365 $34,770 $0 13 years
Loan $20,000 $0 $136 – $200 17 years
Lease $5,000 $0 $125 N/A
PPA $4,000 $0 $125 N/A

What Are Other Ways You Can Save When Going Solar in Indiana?

In addition to choosing the right financing option for your budget, there are a few other things you can do to keep your installation costs low and your solar savings over time high. These include the following:

  • Take advantage of solar incentives
  • Consider batteries carefully
  • Choose high-efficiency panels

We’ll explain how these strategies can save you money on your solar PV system and be more cost-effective over time in the following sections.

Take Advantage of Indiana’s Solar Incentives

One of the easiest ways to save money on your solar array is to take advantage of all of the solar incentives available in Indiana.

All Indiana homeowners have access to the federal solar tax credit, which could effectively reduce your solar conversion costs by an average of $10,431 in Indiana. Keep in mind that you’ll only see that full value if you owe income taxes in excess of this amount over five tax years from the date of installation.

Indiana also has sales tax and property tax exemptions for solar equipment that help you save money, as well as some local incentives from utility companies — like Northern Indiana Public Service Company (NIPSCO) and Indiana Michigan Power — and individual municipalities. You can check the Database of State Incentives for Renewables and Efficiency (DSIRE) website for more information on local solar perks and rebates.

Consider Solar Batteries Carefully

close-up shot of solar panels

Another thing you can do to save money on your clean energy project is to decide if solar batteries will benefit you or end up costing you money in the long run.

Solar batteries can provide electricity to your home through power outages, which is great in high-risk areas like Indiana. However, they don’t usually pay for themselves unless you don’t have access to a good net metering program since they only save money over time if they help you offset energy costs when your panels are underproducing.

Indiana mandates net metering, so some customers won’t see financial benefits from batteries. We recommend you check your net metering program before deciding. If your electric company offers the full retail rate for excess power sent to the grid, opting out of batteries will save you $10,000 or more on your solar project. If you have something closer to the wholesale rate, a battery might end up saving you in the long run.

Choose a High-Efficiency Panel Brand

Finally, we recommend you choose a panel brand with a high efficiency rating, like the panels from Maxeon. Indiana residents see just 186 sunny days annually, which is below the national average of 205. That means less available sunlight and power production overall than you’d see in most states.

Purchasing the best solar panel brands for low-sun conditions like Maxeon will definitely mean higher system installation costs overall. However, highly efficient panels generate more power in all conditions, including the cloudy weather that’s so common in Indiana. As such, they’re more likely to offset the above-average energy consumption in the area, pushing up savings over time.

What Are the Typical Costs of Indiana’s Solar Installers?

There are around 35 solar installers that service Indiana, and each charges different prices for the materials and labor that go into solar arrays. Choosing a more expensive installer could push your installation costs up by thousands of dollars in some cases.

The table below includes some pricing and other information for what we believe are the best solar companies in Indiana. We suggest choosing one that you believe will fit in your budget based on the relative pricing information.

Solar Company  Superlative EcoWatch Rating (Out of 5.0) BBB Rating Average Cost ($–$$$$$)
SunPower Best National Provider 5.0 A+ $$$$
Blue Raven Solar Best Solar Financing 4.5 A+ $$
Yellowlite Solar Veteran 4.0 A+ $$$
GRNE Solar Outstanding Regional Installer 4.5 A- $$$
Icon Solar Solar Veteran 4.0 A+ $$$

How Are Solar Costs and Regulations Trending In Indiana?

According to the Solar Energy Industries Association (SEIA), the prices of solar equipment in Indiana have come down an incredible 54% in the past ten years. The typical system that costs $34,770 today before incentives and rebates would have totaled over $65,000 a decade ago.

The significant drop in equipment pricing is largely thanks to improved production and manufacturing, which has been made possible by the increasing popularity of solar energy solutions in the U.S. Since solar is only getting more and more prevalent in the country, we expect pricing to continue to drop in the near future.

As of right now, the incentive programs available in Indiana are subject to change, but we don’t expect them to in the next few years. The state’s renewable portfolio standard (RPS) goal, although voluntary, doesn’t end until 2025. We don’t anticipate energy companies or the state changing anything in the way of available incentives at least until then.

If something does change, we expect that it would be the net energy metering (NEM) program disappearing or becoming optional. This policy is the most common throughout the country to be discontinued or downgraded, so it’s the most likely to go away in Indiana, in our opinion.

With all of that being said, there has never been a time when going solar was more affordable or more beneficial than it is right now, thanks to historically low equipment prices and currently-available incentive programs. You can use the tool below to get fast and reliable solar quotes from reputable installers in your area to take advantage.

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The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.

FAQs: Indiana Solar Panel Costs

Although solar isn’t as prevalent in Indiana as it is in most other states, we still get lots of questions from residents about the cost of converting and the associated benefits. We’ll answer some of the most common questions we see below.

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Article author
Karsten is an editor and energy specialist focused on environmental, social and cultural development. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.
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Expert reviewer
Melissa is an avid writer, scuba diver, backpacker and all-around outdoor enthusiast. She graduated from the University of Florida with degrees in journalism and sustainability studies. Before joining EcoWatch, Melissa worked as the managing editor of Scuba Diving magazine and the communications manager of The Ocean Agency, a nonprofit that’s featured in the Emmy award-winning documentary Chasing Coral.

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