Solar in Indiana: is it worth it in 2026?
Indiana is one of the hardest states to make solar pay for itself. Three things decide that: electricity prices rank 21st of 51, its sun ranks 35th, and exported power earns much less than the retail rate. Of the 51 states and DC, Indiana has the 42nd-fastest payback for a typical home.
The average home here pays about $150 a month for 938 kWh. A 7.5 kW system sized for that home would knock about $973 off the first year's bills, 54% of the total.
Checked November 12, 2026
What makes solar pay off in Indiana
- Size the system to what you use during the day, not to your whole year: extra power sent to the grid earns about 35% of the retail rate. A battery, or running the dishwasher, laundry and EV charging while the sun is up, raises the value of every panel.
- The price per watt decides it. At 16.0¢ per kWh, the price per watt matters as much as the sun. At $3.34 per watt, the high end of what companies quote, payback for a typical system here stretches to 23 years.
Payback by system size
An average Indiana home uses about 11,256 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 47% | 4 kW | $10,280 | 5,328 kWh | 21 years | $3,684 |
| 77% | 6.5 kW | $16,705 | 8,658 kWh | 20 years | $7,626 |
| 101% | 8.5 kW | $21,845 | 11,322 kWh | 19 years | $10,776 |
| 124% | 10.5 kW | $26,985 | 13,986 kWh | 20 years | $10,327 |
The 8.5 kW system has both the fastest payback and the most savings. Assumes exported power earns about 35% of the retail rate, prices rise 2.5% a year and one inverter replacement.
How Indiana credits power you send to the grid
Reduced credit (net billing)
Net billing with reduced export rates for new systems.
We haven't found a single published export rate for Indiana, so the calculators assume about 35% of the retail rate. Ask your utility for its rate and enter it.
By utility
- Duke Energy Indiana: Excess distributed generation (EDG): every kWh sent out is credited at 1.25 times Duke's average marginal price of energy from the year before, a few cents per kWh.
- AES Indiana: 5.43 cents per kWh for exported power under Rider EDG (effective July 2026), 1.25 times AES's average marginal energy price, updated each spring.
Before you sign in Indiana
Check the license. Look the company up with the Indiana Professional Licensing Agency, by its legal name or license number, and ask for the electrician's license number too.
Indiana has no solar-specific sales law that we know of, so its general consumer protection law applies.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
Indiana compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| Indiana | 16.0¢ | 1,332 | 19 years | Reduced credit (net billing) |
| Illinois | 17.7¢ | 1,308 | 16 years | Reduced credit (net billing) |
| Michigan | 20.0¢ | 1,291 | 15 years | Reduced credit (net billing) |
| Ohio | 16.9¢ | 1,296 | 13 years | Monthly netting |
| Kentucky | 13.1¢ | 1,343 | 20 years | Reduced credit (net billing) |
Questions about solar in Indiana
How long does solar take to pay for itself in Indiana?
About 19 years for a typical 7.5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does Indiana have net metering?
Not full net metering. Net billing with reduced export rates for new systems.
Is there a solar tax credit in Indiana in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 7.5 kW system in Indiana, that credit was worth about $5,783 and brought payback down to 15 years, instead of 19 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in Indiana?
On bill savings alone, not quite: a 13.5 kWh battery at about $15,650 would move about 3,548 kWh of solar power a year from the grid to your evenings in a typical Indiana home, adding about $5,357 of savings over 15 years. That doesn't cover its price, so the system's payback goes from 19 years to over 25 years; the rest is paying for backup during outages. Time-of-use rates, battery rebates and utility payments for sharing your battery can tip it; try your numbers in the payback calculator.
Is plug-in solar legal in Indiana?
There's no plug-in solar law yet in Indiana, so your utility may treat a kit like any rooftop system.
How do I check a solar company's license in Indiana?
Look the company up with the Indiana Professional Licensing Agency (in.gov/pla) by its legal name or license number, and ask for the electrician's license too.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; SolarReviews: Net metering in 2026; PV Tech: Indiana replaces net metering with excess distributed generation; AES Indiana: Rider 16, Excess Distributed Generation (July 2026); AES Indiana: residential rates (July 2026); EnergySage: median quoted price, first half of 2026.