Bloomington, IN 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 typically increase your property’s assessed value. This exemption removes that added value from your tax assessment, so you won’t pay higher property taxes because of your solar investment. For example, if your solar system adds $5,000 to your home’s assessed value, that amount is deducted from your total assessment, lowering your annual property tax bill.

This benefit is available to homeowners, lessees (renters with landlord permission), and those buying property under contract. To receive the exemption, you must file Form SES/WPD with your county assessor by January 5th following your solar installation. The good news is you only need to apply once—the exemption automatically renews each year without requiring you to refile. The exemption continues for as long as you own the solar system and remain eligible, providing ongoing property tax savings throughout your system’s lifetime.

It’s important to note that this is a deduction from your assessed value, not a credit or direct payment. The actual dollar savings will depend on your local property tax rate and your system’s assessed value. If you become ineligible for any reason, you must notify your county auditor. You can contact your county assessor’s office for questions about filing or to obtain the required form.

Indiana’s Sales Tax Exemption allows certain businesses and contractors to purchase solar energy equipment without paying the state’s sales tax at the point of sale. This exemption is primarily designed for registered retail merchants, wholesalers, manufacturers, and contractors working on specific exempt projects (such as installations for government buildings or public schools). The financial benefit equals the full amount of Indiana’s sales tax that would otherwise be added to your solar equipment purchase.

To qualify for this exemption, you must be registered with the Indiana Department of Revenue or your home state’s tax authority, and you must complete Form ST-105 (General Sales Tax Exemption Certificate) at the time of purchase. The most relevant exemption categories for solar installations include: purchases by retailers or manufacturers for resale, manufacturing equipment used in direct production, or sales to contractors working on exempt projects. Important note: This exemption cannot be used for utility purchases, and it cannot be issued by nonprofit organizations. If you’re unable to provide all required documentation at the time of purchase, you’ll need to pay the sales tax upfront and file a refund claim (Form GA-110L) directly with the Indiana Department of Revenue.

Homeowners should be aware that this exemption is primarily a business-to-business benefit rather than a direct consumer incentive. If you’re a residential customer purchasing a solar system for your home, this exemption typically wouldn’t apply unless you’re working through a contractor who qualifies for the exemption on exempt projects. The exemption has no expiration date and remains available as long as you meet the eligibility requirements and properly complete the required documentation.

Net metering is a billing arrangement that allows Indiana 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, the surplus flows to the utility grid, and your electric meter essentially runs backward. You then receive credits on your utility bill that offset the cost of electricity you draw from the grid when your panels aren’t producing enough power, such as at night or on cloudy days.

Unfortunately, we don’t have specific details about Indiana’s current net metering rates, eligibility requirements, or program deadlines at this time. Net metering policies can vary by utility company and may have changed recently due to state legislation. We recommend contacting your local utility provider directly to learn about their specific net metering program, including how credits are calculated, whether there are system size limits, and if there are any application deadlines. Understanding your utility’s net metering policy is an important step in evaluating the financial benefits of going solar in Indiana.