Indiana Solar Panels

Indiana’s Property Tax Exemption allows homeowners who install solar energy systems to reduce their annual property taxes. When you add solar panels to your home, they increase your property’s assessed value—but this exemption removes that added value from your tax calculation. For example, if your solar system adds $5,000 to your home’s assessed value of $200,000, you’ll only pay property taxes on $195,000. This means you benefit from clean energy without facing higher property taxes year after year.

This exemption is available to homeowners, those leasing a property, and buyers purchasing under contract. Once approved, you don’t need to reapply annually—the deduction continues automatically as long as you remain eligible. To claim this benefit, you’ll need to file Form SES/WPD with your county assessor or auditor by the annual deadline (typically early January). The form can be submitted by email, in person, or through regular mail. Since the exemption equals the full assessed value of your solar system, it provides ongoing savings that help offset your investment in clean energy for years to come.

Indiana’s Sales Tax Exemption allows certain businesses and contractors to purchase solar energy equipment without paying the state’s sales tax at the time of purchase. This exemption is primarily designed for registered retail merchants, wholesalers, manufacturers, and contractors working on exempt projects (such as installations for government entities or public schools). While this isn’t a direct homeowner incentive, it can potentially reduce your solar installation costs if your contractor qualifies for and properly uses this exemption when purchasing equipment for your project.

The financial benefit equals Indiana’s sales tax rate (currently 7%) on eligible solar equipment purchases. To claim this exemption, purchasers must complete Form ST-105 and provide either an Indiana Taxpayer Identification Number (TID) or a valid out-of-state business tax ID number. The exemption cannot be used for utilities, vehicles, watercraft, aircraft, or gasoline, and nonprofit organizations are not eligible to use this particular certificate.

Important considerations: This exemption must be claimed at the point of sale by the business making the purchase—it’s not something homeowners typically claim directly. However, you may want to ask your solar contractor whether they utilize this exemption when purchasing equipment for your installation, as it could affect your overall project cost. The certificate can be used as either a blanket exemption for multiple purchases or for a single purchase, and sellers must keep the completed form on file to support exempt sales.

Net metering is a billing arrangement in Indiana that allows homeowners with solar panels to receive credit for the excess electricity they generate and send back to the grid. When your solar system produces more energy than your home uses during the day, that surplus power flows to the utility grid, and your electric meter essentially runs backward. You then use these credits to offset the cost of electricity you draw from the grid during times when your panels aren’t producing enough power, such as at night or on cloudy days.

Unfortunately, specific details about Indiana’s current net metering rates, credit values, and program requirements are not available at this time. Net metering policies can vary by utility company and may include factors such as how credits are calculated, whether they roll over month-to-month, and any system size limitations. We recommend contacting your local utility provider directly to learn about their specific net metering program, including the financial benefits you can expect and any eligibility requirements for your home solar system.