Evansville, 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 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 property, and buyers purchasing under contract. Once approved, you don’t need to reapply annually—the deduction continues automatically each year 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 January 5 deadline following your solar installation. The form can be submitted by email, in person, or postmarked by mail. If you close on a new property late in the year, you can still apply for the deduction for the following tax year, even if you didn’t live there during the previous year.

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 exempt projects (such as installations for government buildings or public schools). While this is technically a business-focused exemption rather than a direct homeowner incentive, it can indirectly benefit residential solar customers when contractors pass along the savings from tax-exempt equipment purchases.

To claim this exemption, purchasers must complete Form ST-105 and provide valid identification numbers (such as an Indiana Registered Retail Merchant’s Certificate or out-of-state business license). The exemption applies to solar equipment and components but specifically excludes utilities, vehicles, watercraft, aircraft, and gasoline. Importantly, nonprofit organizations cannot use this exemption certificate. The financial benefit equals Indiana’s sales tax rate applied to the equipment cost, which can represent meaningful savings on large solar installations when contractors factor this into their pricing.

Homeowners should understand that this exemption typically applies to the solar installation company rather than directly to them as individual purchasers. However, you may see lower overall project costs if your contractor is able to purchase equipment tax-free and passes those savings along. When evaluating solar quotes, it’s worth asking contractors whether they’re registered to claim this exemption and how it affects their pricing. Keep in mind that misuse of this certificate carries penalties, so only qualified businesses with proper registration should claim this exemption.

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 structure are not available at this time. Net metering policies can vary by utility company and may include factors such as how credits are valued, whether they roll over month-to-month, and any system size limitations. We recommend contacting your local utility provider directly to understand the exact financial benefits and requirements for your specific location. They can provide information about eligibility criteria, application processes, and any important program details that may affect your solar investment.