Solar Panel Cost Guide in Indiana, PA (2023 Update)
- Indiana Solar Installation Cost: $12,641
- 25-Year Savings: $14,009
- Payback Period: 11.9 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Indiana
Find out what the average cost of solar panels are in Indiana.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Indiana, the average cost of solar panels is 2.55 per watt. To cover the typical energy needs of the average home in Indiana, most homeowners require a 7.1-kilowatt system. Using the per-watt figure above, a solar installation costs around $12,638, or $18,072 before the federal solar tax credit of 30% is applied.
Keep in mind that the figures above are only estimates based on the average Indiana homeowner. The price of a solar system for your home may be different depending on factors unique to your situation, like your household energy use and solar contractor. For many homeowners, the upfront investment in solar power is worth paying. On average you could be looking at about $14,000 in savings on utility bills over 20 years.
To get a free quote from a pre-vetted solar company in Indiana, you can click the button below.
Solar savings over time in Indiana
| Year | Return on Investment |
|---|---|
| 1 years | $-11,164 |
| 3 years | $-8,209 |
| 5 years | $-5,254 |
| 7 years | $-2,299 |
| 9 years | $656 |
| 11 years | $3,611 |
| 13 years | $6,566 |
| 15 years | $9,521 |
| 17 years | $12,476 |
| 19 years | $15,431 |
| 21 years | $18,386 |
| 23 years | $21,341 |
| 25 years | $24,296 |
Top Solar Installers in Indiana
Although it's possible to install solar panels yourself, it involves extra time and handiness. That's one of the reasons most homeowners choose to go with a solar panel installer. The expertise that solar companies provide can be useful as well, especially if you aren't sure what brand of solar equipment you need.
There are various licensed solar professionals that can install solar panels for you. Here are our suggestions:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
See all of the solar companies in Indiana
Factors that Affect Solar Panel Costs in Indiana
There are several factors that can influence your solar system installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that performs the installation.
Solar Equipment
The size of the solar panel system you need to offset your energy usage, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by around $2,550. The type of solar panels and equipment you want is another factor that will significantly impact costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to be more pricey. Moreover, solar equipment is more than just the solar panels themselves. You'll also need to think about the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when searching for a solar system that falls within your budget.
Solar Financing Terms
Solar panels can save you money on power bills over time, but they can also be a significant investment. That's why many Indiana homeowners decide to finance their solar panel systems to offset upfront costs. While solar loans make going solar more accessible for Indiana homeowners, they can also add to the total you pay for your system due to interest. If you make a larger down payment, though, you can cut back on how much interest you have to pay.
Solar Panel Installation Company
The solar company you opt for to handle your switch to green energy can play a role in your total costs. There are about 3 solar panel companies in Indiana, and each can charge different amounts for labor and equipment. Companies that only sell products with high efficiency and therefore a higher price point — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come at a higher cost. It's best to do some research and choose a company that provides the products, warranties and services you want and also fit into your budget.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.65 | $11,138 | $11,440 | 12.3 years |
| 8 kW | $2.60 | $14,566 | $15,539 | 12.1 years |
| 10 kW | $2.55 | $17,850 | $19,780 | 11.9 years |
| 12 kW | $2.50 | $20,992 | $24,165 | 11.6 years |
| 14 kW | $2.45 | $23,990 | $28,692 | 11.4 years |
| 16 kW | $2.40 | $26,846 | $33,362 | 11.1 years |
| 18 kW | $2.35 | $29,560 | $38,175 | 10.9 years |
| 20 kW | $2.29 | $32,130 | $43,131 | 10.7 years |
How to Save on Solar Panels
The company that does your solar system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Because selecting a company can be a tough decision, we have some tips to help you, such as:
- Warranty: A quality company stands out from other companies by offering the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Contract: When reading through your solar company's contract, ask for clarification about any terms you're not sure of and be sure you understand what happens in scenarios like a system part breaking or if the company goes out of business.
- Solar Panel Brands: The model of solar panel you'd like to install plays a part in which company you should choose, since different companies have different panels.
- Reputation: Solar companies that have great reviews from their customers and that have been in business for many years likely offer good-quality solar panel installation and expertise.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
EcoWatch's Indiana, PA Solar Cost FAQs
What is the average cost of installing solar panels in Indiana?
This is a difficult question to answer precisely, because the cost depends on many factors. Generally speaking, it costs about $12,750 for a 5-kW system and $25,500 for a 10-kW system after the ITC is applied. It will be more expensive if you want extra solar equipment or higher quality panels, or if you have higher-than-average energy needs. On the other hand, you can spend less if you go with a smaller solar panel system or cheaper solar panels.
Is it better to lease or buy solar panels in Indiana?
Leasing solar panels can be an option if you are unable to pay upfront or get a solar loan, but since you don't own the system, you can't take advantage of many solar incentives. Also your home value won't increase, so you'll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most financial benefits from going solar.
Can you sell solar power back to the grid in Indiana?
The majority of states offer net metering programs of some kind. Through these, you can receive compensation for the extra power your system generates or or receive credits to put toward future electricity bills. Currently there are just three states that don't have any net metering laws: Alabama, Tennessee and South Dakota.
What solar power system size is right for my home?
The exact number of solar panels you need depends on your household energy needs and the average daily sunlight your roof gets. You can look at your energy bills for the past year to get an idea of the solar system size you'll need. The average household has to install between 20 and 35 panels to cover their typical energy usage.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.