Are you an Indiana resident seeking to embrace solar energy? Are you tired of the ever-increasing price of electricity? If so, we have some valuable information for you.
Indiana utility companies like NIPSCO and IPL have steadily increased their rates over the years. The latest increase came in the fall of 2022 when their rates increased by over 16%. Rising fuel prices are the primary reason for this increase.
With inflation being where it is, few Americans can accommodate a hike in energy prices. One effective solution is embracing alternative energy sources. Solar energy can cut your electric bill and save you money. But what does it take to install solar panels in Indiana?
This article discusses everything you need to know about solar installation in Indiana. We discuss solar incentives and peak sunlight hours in the Crossroads of America. We also outline our recommendations for the best installers in Indiana.
But before we get into all that, what is the cost of installing solar panels in Indiana?
Solar System Installation Costs in Indiana
Cost is an essential factor to consider when buying solar panels. But what is the cost of installing solar panels in Indiana?
As of April 2023, solar panel costs averaged $2.49 per watt. For example, a 5 kW system would cost $12,450 before tax credits. The $2.49 per watt price is still lower than the national average of $3.00.
There are advantages to installing larger systems as the laws of bulk buying apply. The larger your system, the lower the cost per watt. To help you grasp this concept, consider the table below. It compares the installation costs of different solar system sizes.
Note: The prices below are only averages. They can vary from provider to provider. Also, the prices shown below are average costs before tax deductions.
|System Size in kW||Average Cost Per Watt||Average System Cost
(Before Tax Credits)
As you can see from the prices above, the average cost per watt reduces with increasing system size.
What Makes Up the Cost of Installing Solar Power in Indiana
The cost of solar panel installation in Indiana is not just a magic number pulled out of a hat. Many factors go into solar system pricing. And they include solar equipment costs, installation costs, permits, and inspection costs.
|Factor||Cost per kW|
|Racking and Balancing System||25¢|
|Sales and Marketing||37¢|
|Permits and Inspection||12¢|
Factors That Affect Solar Panel Installation Costs
Many factors influence your solar installation costs, including:
Your Energy Needs
The higher your energy needs, the larger your expected system size. Your energy need depends on the number of electronic appliances on your premises. And also how long you use them in a day. Check out this article on off-grid solar systems to learn how to calculate your energy needs.
Your Solar Panel Preferences
Solar panel prices vary depending on the type. For residential installation, you can choose between monocrystalline and polycrystalline solar panels. The former is more expensive yet more efficient than the latter. For more comparisons, check out this article comparing the two options.
Quality of Solar Installation
Low-quality solar equipment is usually cheaper. If the quote is too good, think twice.
Solar Incentives in Indiana
Solar incentives can significantly lower your installation costs. Let’s look at Indiana and all the solar incentives applicable to its residents.
Federal Solar Tax Credit
Every homeowner in the US is entitled to a federal solar tax credit. Since Indiana is part of the United States, its residents can apply for the Residential Clean Energy Credit. It can reduce your installation costs by 30%.
How does the 30% federal tax credit affect solar installation prices in Indiana?
|System Size in kW||Average System Cost
(Before Tax Credits)
|Average System Cost
(After Federal Tax Credit)
Note: The Residential Clean Energy Credit only applies to those who buy solar systems outright. It does not apply to leased solar contracts.
Indiana Sales Tax Exemption
Many solar components in Indiana are exempt from sales tax. These solar components include solar modules, inverters, and racks. Indiana tax laws exempt them due to their direct involvement in energy production.
Renewable Energy Property Tax Exemption
Installing a solar system adds value to the property. Before imposing property taxes, local governments must assess your property value. Their assessment doesn’t include the value of your new solar installation.
Thanks to this tax exemption, you don’t have to worry about increased property taxes.
Solar Easement Laws
Like other states, Indiana has solar easement laws. These laws protect your solar panels from shading by other buildings.
Top Indiana Local Solar Companies
Solar Energy Solutions is the best solar panel installer in Indiana. They are a Tesla PowerWall certified installer that enjoys great customer reviews online. Their customers praise them for the responsiveness and professionalism of their staff.
- Location: 7966 Zionsville Road, Indianapolis, IN 46268
- Phone: +1 317-650-0171
Whole Sun Designs is a family-owned solar company based in Bloomington. It offers solar solutions to both commercial and residential clients. They also support group buys.
- Location: 5233 S Old Indiana 37, Bloomington, IN 47401
- Phone: +1 812-550-1251
Solar Energy Systems take pride in its local roots. They serve the Northern Indiana area. Solar Energy Systems places a lot of emphasis on customer education. Solar Energy System is the best choice if you’re looking to fit solar panels on your home, business, or RV.
- Location: 8015 W 1350 N Suite A, Nappanee, IN 46550
- Phone: +1 574-773-0546
The Better Business Bureau accredits Morton Solar & Electric with a grade of A+. It specializes in grid-tied systems as well as off-grid alternatives. Morton Solar & Electric’s strengths lie in its staff’s responsiveness, quality, and professionalism.
- Location: 2166 E Morgan Ave, Evansville, IN 47711
- Phone: +1 812-402-0900
GRNE has served homes and businesses since its founding in 2012. you can find their clients all over the Midwest. Today they also install EV charging stations and offer solar maintenance services. Their customers praise the quality of their installations. The professionalism of their staff is also legendary.
- Location: 7718 N Michigan Road, Indianapolis, IN 46268
- Phone: +1 317-662-0013
Blue Raven Solar’s mission is to help homeowners reduce their energy costs. They must be winning on their mandate because they enjoy positive reviews online. Their customers praise their professional crew and the quality of their services. The company’s app allows you to track solar production.
- Location: 3901 W 86th Steet Unit 124, Indianapolis, IN 46268
- Phone: +1 855-912-3219
Jefferson Electric is an electrical contractor. They specialize in solar energy production, storage, and EV charging. They serve the Greater Indianapolis area. Jefferson Electric has worked with many organizations, including Furrio, Subaru, and Bloomington FD. Their clients praise them for their professionalism and the quality of their services.
- Location: 2550 E Hanna Avenue, Indianapolis, IN
- Phone: +1 317-418-3917
Installing Solar Panels in Indiana: What You Should Know
Compared to other states, Indiana ranks low on peak sunshine hours. The Crossroads of America averages about 4.5 hours of peak sunlight. Indiana ranks 35th among the 50 states of America.
But, the low rank has only encouraged Indiana to embrace renewable energy.
The installed solar capacity in Indiana has been rising for years. More and more Indiana residents are embracing solar energy. Indiana local governments are encouraging them with attractive incentives.
Southern cities and towns enjoy more sunlight than northern locations. For example, South Bend, a northern city, averages 4.2 hours of peak sunlight in a day. Evansville, a southern city averages 4.7 hours daily.
Solar panels don’t convert every hour of sunlight with the same efficiency. The seasons and the sun’s angle affect solar panel efficiency ratios. In the summer, Indiana averages 5.02 hours of peak sunlight and 2.55 hours in the winter.
To mitigate these inefficiencies, you can adjust the angle of your installation. Below are optimal solar panel tilts for various seasons.
|Season||Solar Panel Tilt Angles|
Solar panel installation does not have a one-size-fits-all model. Different locations demand different treatments. Concerning Indiana, you’ve learned about the cost of solar panel installation in the state. You’ve also learned about the incentives entitled to you when you install a solar power system. Plus, the best installers in the state.
This information can help you make informed decisions as you seek to install solar panels in Indiana.