Indiana Solar Energy Incentives

*59MW Indiana Solar Energy Farm

Although Indiana recently passed the controversial Senate Bill 309 that limits net-metering incentives for residential home solar systems; the state has numerous other incentives for homeowners to take advantage of. One of the most beneficial incentive that is available for both homeowners and renters is the Property Tax Exemption, in which the property is eligible to receive 100% property tax exemption. The exemption is available for a number of renewable energy applications including: solar photovoltaics, solar water heat, solar space heat, solar thermal process heat, wind, hydroelectric, geothermal electric, geothermal heat, pumps, solar pool heating, and geothermal direct-use. To qualify, the solar PV system must be installed after December 2011; and solar heating and cooling equipment is only eligible to receive an exemption in the amount the homeowner spent to install it.

The Energy Savings Tax Credit is available for solar powered roof vents or fans. The credit is one-half the amount the homeowner paid for labor and materials for the installation of the solar powered roof vent or fan or $1,000. As with the property tax exemption, both homeowners and renters are eligible for this state income tax deduction. Indiana is one of the few states that allows renters to take these credits and exemptions, and is a great added benefit to residents in Indiana. To view more incentives and tax credits available in Indiana check out the chart below.

Financial Incentives

As in all states, it is important for you and/or your installer to know the regulatory policies in your county and state. Most states will assist you in ensuring that your solar system meets all standards during your permit process phase. Regardless, knowledge of these regulations can be very helpful in avoiding costly damages from systems that do not meet these policies. In some cases, the solar system will need to be reinstalled which can add up to more materials and installation fees, so be sure to keep up-to-date on all state regulations and hire a reputable installer.

Regulatory Polices

All in all, Indiana has some impressive incentives and rebates that homeowners can take advantage of. Regardless of their late entry into the solar market, and regulations working against renewable energies; it seems that Indiana will continue to move forward.