Cost of Solar Panels in Indiana: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Indiana:

  • Average Cost Per Watt: $2.68
  • Cost of Average System: $18,840*
  • 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.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/19/2022

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Find Cost Savings on Solar in Indiana

As a homeowner in Indiana, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Jump to Section:

  1. Cost of Solar Panels in Indiana
  2. Solar Panel System Installation Cost in Indiana
  3. What Determines the Cost of Solar Panels in Indiana
  4. Indiana Solar Incentives
  5. Best Solar Panel Brands and Installed Solar System Costs in 2022
  6. FAQ: Solar Panel Cost Indiana

 

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SunPower

  • Pros icon Most efficient panels on the market
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  • Pros icon Great warranty coverage
  • Con icon Expensive
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Blue Raven Solar

  • Pros icon Industry-leading in-house financing
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Powerhome Solar

  • Pros icon Great warranty coverage
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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 $18,840 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.

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 $13,882
8 kW $21,440 $15,866
9 kW $24,120 $17,849
10 kW $26,800 $19,832
11 kW $29,480 $21,815
12 kW $32,160 $23,798

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.

What Determines the Cost of Solar Panels in Indiana?

As the table above demonstrates, the size of your solar system is the most prominent factor in determining its price, with costs increasing with every additional kilowatt added. However, there are several other factors to keep in mind that can significantly affect your total. We’ll discuss these briefly below.

Solar Equipment

The equipment you choose for your solar project can swing your price up or down by thousands or even tens of thousands of dollars.

First, you’ll have to consider the array of equipment you want. All home solar systems include solar panels and inverters. Add-on equipment will cost extra but can provide some customization options for your setup. For example, adding solar batteries — like the Tesla Powerwall — or electric vehicle chargers will increase your total cost of going solar.

Additionally, the brand of equipment you choose matters. The cheapest solar panels will always cost significantly less than the most efficient panels, reducing your upfront costs. However, high-efficiency solar equipment can often provide more energy production and could save money in the long run.

Solar Financing

Solar equipment and installation is expensive in Indiana, and some homeowners might not be able to pay the average $25,460 up front for a solar panel system. Luckily, solar financing options are available from nearly every installer in Indiana, and third-party companies also offer solar loans.

While financing reduces your initial investment, it will always result in you paying more over time for your solar energy system, cutting into your return on investment. Even low-APR loans will lead to interest accruing on your principal balance. It’s best to include the estimated interest in your cost calculations using a solar calculator to determine your all-in price. A good way to reduce your interest is by paying a larger amount upfront via your down payment.

Solar Installation Company

Finally, the solar installer you choose to complete the conversion process can have an impact on your total. Companies will charge different amounts for their labor, equipment and warranties.

The size of the company you select is something to consider as well, as larger national companies tend to have lower pricing at the expense of customization options and, sometimes, customer service quality. Smaller local companies sometimes provide discounts to undercut the larger corporations, but it really depends on the specific company you’re considering.

Additionally, some companies will typically be more expensive than the competition if they only carry high-quality equipment. For example, a solar panel installation company that exclusively offers Maxeon solar panels from SunPower or Tesla Powerwalls will come with higher costs, although the high-efficiency equipment will often save you money on your utility bills over time.

Indiana Solar 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 26% credit on their federal income taxes. The credit is currently set to reduce to 22% in 2023 and will be eliminated for residential systems in 2024.

Best Solar Panel Brands and Installed Solar System Costs in 2022

The EcoWatch team evaluated the best solar panels available to see which are the most efficient and affordable in Indiana. The table below lists the most popular and high-quality brands along with relative pricing to help you decide which is right for you.

Solar Panel Brand Average Cost Per Watt
LG Solar $$$
Canadian Solar $$$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

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People Also Ask

EcoWatch FAQ: 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.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.