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Solar Panel Cost in Indiana (2023 Local Savings Guide)
Here’s a quick look at the estimated cost of solar in Indiana:
- Average Cost Per Watt: $2.68
- Cost of Average System: $17,822*
- Cost of Energy Without Solar: $47,454
- Payback Period: 12 Years**
- Lifetime Savings of Going Solar: $21,994
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.
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Cost of Solar Panels in Indiana
The typical solar panel system in Indiana needs to be 9.5 kW to cover the average $120 monthly electric bill in the area. At a statewide price per watt of $2.68 — slightly above the national average of $2.66 — that comes out to an average price of $25,460, or $17,822 after you take advantage of the federal solar tax credit.
The cost of solar in Indiana is about average compared to most states, and the high energy usage and high cost of electricity — especially in cities like Indianapolis — make going solar a worthwhile investment for most homeowners.
SunPower
Best National Provider
Pros
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
Cons
- Expensive
- Customer service varies by local dealer
Blue Raven Solar
Best Solar Financing
Pros
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
Cons
- Doesn't offer solar batteries (coming 2022)
Icon Solar
Solar Veteran
Regional Service
Average cost
Pros
- Many years of experience
- Comprehensive service offerings
- Great warranty coverage
Cons
- No leases or PPAs
Solar Panel System Installation Cost in Indiana
The biggest factor to consider when estimating the cost of going solar for your home is the size of the system you’ll need. This is based on a number of factors, including your average energy consumption (measured in kilowatt-hours), the size and energy efficiency of your home, your roof orientation and more. Each additional kilowatt your home requires will add approximately $2,680 to your total.
Below are some standard system sizes in Indiana, along with estimated prices before and after the federal tax credit.
| Size of Solar Panel System | Indiana Solar Panel Cost | Cost After Federal Tax Credit |
| 7 kW | $18,760 | $13,132 |
| 8 kW | $21,440 | $15,008 |
| 9 kW | $24,120 | $16,884 |
| 10 kW | $26,800 | $18,760 |
| 11 kW | $29,480 | $20,636 |
| 12 kW | $32,160 | $22,512 |
Interested in getting a size assessment and a free quote for going solar for your home but not sure where to turn? Check out our review of the best solar companies in Indiana to get started in the right direction.
See also: See how much you can save by going solar with the EcoWatch Solar Calculator
What Determines the Cost of Solar Panels in Indiana?
Indiana homeowners pay an average of $18,840 for their solar panel systems, but it’s not uncommon for prices to land anywhere between $13,882 and $25,782.
The price range is so wide because the cost depends on a few primary factors that can cause price swings on the order of hundreds or thousands of dollars. We’ll explain these cost factors below.
Solar Equipment
Since panels and other solar equipment are quite expensive, your total system cost will depend largely on the type of equipment you install and the brands you choose. There are two factors at play in Indiana that bump up the overall price of solar equipment.
First, Indiana is prone to some severe weather, including tornadoes and severe thunderstorms. These weather events lead to frequent power outages, so it’s common for IN solar customers to include solar batteries in their setups.
Solar batteries can provide power through blackouts, so they can come in very handy, but they can add thousands or even tens of thousands to your system total.
Indiana also receives just 186 days of sunlight each year. This is well below the national average — 205 sunny days annually — and it means that about half the year is cloudy, so your panels’ production will be significantly limited.
As a result, high-efficiency panels designed for low-sun areas are usually preferred in Indiana. These panels are more expensive than standard ones, which, again, drives up the average cost of solar in the area.
Solar Financing in Indiana
The most common payment methods for solar panels are cash purchase and solar loan, and the one you choose can affect your total system cost.
Cash purchases are infeasible for some people because they require a large up-front payment; however, they let you avoid interest and end up costing less overall. Solar loans, with their lower up-front costs, are more convenient but your total system price will usually jump by hundreds or thousands of dollars because of interest payments.
Unfortunately, there are no statewide solar financing programs available to keep interest rates to a minimum. Indiana doesn’t offer Property Assessed Clean Energy (PACE) loans, and as of July 2022 there are no options for low-income residents looking to convert to solar energy.
Indiana Solar Installation Company
The installation company you pick to install your solar equipment can have an impact on your all-in system price as well.
Cost differences exist between solar installers in Indiana because of varying equipment and labor charges. Significant differences between installers can be due to the specific array of equipment each carries.
For example, two of the best solar companies in Indiana, SunPower and Blue Raven Solar, offer different equipment brands. SunPower installs only panels by Maxeon, one of the most costly brands on the market, while Blue Raven offers panels from SunPower/Maxeon as well as Canadian Solar, Trina and Panasonic.
If you choose a panel brand other than SunPower/Maxeon, the difference in pricing between these two providers will likely be significant due to the difference in panel cost.
Additional Considerations and Costs in Indiana
The factors discussed above are the major ones that can affect your cost, but they don’t comprise an exhaustive list of things to consider when going solar in Indiana. We’ll take you through some additional things to think about below.
- Permits: Building permits are required to install a solar panel system in Indiana. Most reputable solar installers will handle the permitting process for you, but you will be responsible for being present for any inspections and for the permit fee.
- Licenses: The State of Indiana doesn’t have any specific licensing requirements for solar installers. However, you should check with your local municipality for mandatory licenses and then ensure your vendor holds them.
- Warranties: Most of the major solar panel brands and installers include equipment and labor warranties, which are crucial for protecting your home and your system. You might also want to choose a warranty that covers roof leaks, given how much precipitation falls in Indiana.
- HOAs: Indiana passed solar rights and easement laws in 2022, so all homeowners — even those in homeowners’ associations — have the inviolable right to install solar panels.
- Environmental zoning: The zoning laws in Indiana are conducive to rooftop solar systems, so it’s unlikely you’ll have any major issues with zoning.
Indiana Solar Panel Incentives
To help reduce the cost of switching to clean energy, the state government in Indiana and the federal government provide access to solar rebates and tax incentives. Below are the renewable energy incentives available to Hoosier State residents.
| Indiana Solar Incentive | How it Affects the Cost of Solar Panels in Indiana |
| Sales Tax Exemption | Indiana’s laws ensure you don’t pay sales tax on any solar photovoltaic equipment. |
| Property Tax Exemption | Solar panels will raise your property value, but in Indiana, your property taxes will be calculated excluding this added value. |
| Net Metering | Through net metering, your utility company will credit you for any excess energy your system produces. Indiana mandates net metering but doesn’t require providers to value the credits at the full retail rate. (Learn more) |
| Local Solar Rebates & Incentives | Your utility company or municipality may offer solar rebates, credits or other incentives. Be sure to research what’s available in your area. |
| Federal Solar Tax Credit | The federal solar investment tax credit (ITC) is available for all U.S. homeowners and allows those who switch to solar to claim a 30% credit on their federal income taxes. The credit is set to reduce incrementally starting in 2033. |
The Best Solar Panel Brands Available in Indiana
Indiana residents have plenty of options when it comes to solar panel brands, although the likelihood is that you’ll need high-efficiency panels to provide enough power in the state’s low-sun conditions.
The table below provides some pricing information for the best solar panels in the Hoosier State.
| Solar Panel Brand | Average Cost Per Watt |
| LG Solar | $$$ |
| Canadian Solar | $$$ |
| JA Solar | $$ |
| Mission Solar | $$ |
| Panasonic | $$ |
| Q Cells | $$ |
| REC | $$$ |
| Silfab | $$$ |
| SunPower | $$$$$ |
| Tesla | $$ |
| Trina Solar | $$$ |
Ready to see what size solar system you need and how much it will cost? Select one of our top providers below for a free, no-obligation quote to get started.
Read More About Going Solar
FAQs: Solar Panel Cost Indiana
The EcoWatch team gets questions daily from Indiana residents about going solar and the benefits they can enjoy. Below are some of the questions we see most frequently, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
Yes, absolutely! Going solar is considered a worthwhile investment in Indiana because, provided you buy or finance them, your property value is expected to increase.
A study from Zillow estimates an average return of about 4.1% of your property value. In Indiana, where the average property value is $206,422 at the time of publication, that’s an estimated return of about $8,463.
Unfortunately, this bump in home value is not expected when you lease panels or enter into a power purchase agreement (PPA), making these much less cost-effective options.
It’s almost always a better idea to buy or finance your solar panel system in Indiana if you have the option. Leasing makes going solar more accessible for some homeowners, but it doesn’t come with nearly as many benefits.
For example, your home value will not increase when you lease solar panels, so you’ll be missing out on a bump of about $8,463. You also won’t get the benefit of the federal tax credit when you lease, so that’s another loss of $7,638, on average. In case that’s not enough, leasing will also save the least amount of money over time despite often being the most affordable option upfront.
No, solar panels are not free in Indiana, and the companies that advertise “free panels” don’t actually install free panels. This is a marketing scheme to get you to sign a solar lease or power purchase agreement (PPA), neither of which is usually in your best interest.
Yes, it is possible to eliminate your electricity costs in Indiana by installing a solar panel system, and many residents do exactly that (minus any interconnection fees). However, it is more challenging to do in Indiana than in many other states because of its below-average net metering policy. You’ll need a roof that gets plenty of sunlight, a large enough system, and solar batteries to offset energy usage in most cases in Indiana.
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- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
A+Best National Provider1985SunPower Panels25-year all-inclusive warranty
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