Evansville, IN Solar Panels
Solar Power in Evansville
If you’re a homeowner in Evansville, IN thinking about solar, you’re not alone — and you’re asking the right questions. With Indiana electricity prices up 16% from 2020 to 2024, more local residents are exploring ways to take control of their energy costs.
This guide breaks down everything you need to know about solar panels for your home — from how the installation process works to what you can realistically expect to save in the Evansville area.
How Much Do Solar Panels Cost in Evansville, IN?
Based on real solar installations across Evansville and nearby areas like Newburgh, Boonville, and Mount Vernon, this calculator uses local data to give you an accurate estimate of what solar could cost — and save — for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Evansville homeowners can save an average of ~$43,000 over 25 years by switching to solar, based on real local installations.
- Indiana offers a property tax exemption and a 7% sales tax exemption on solar equipment, reducing your upfront and long-term costs.
- No upfront cost? No problem. Palmetto’s LightReach lease lets Evansville homeowners go solar for as little as $81/month with no investment required.
Evansville Electricity Prices
Electricity costs in Evansville have been climbing. Here’s what the data shows — and why it matters for your home.
As the chart shows, Indiana electricity rates rose from 13.4 cents per kWh in 2021 to 14.8 cents per kWh in 2024 — roughly a 10% increase. While still below the national average, the upward trend is consistent.
Solar can help Evansville homeowners reduce their dependence on grid electricity. By generating power at home, you’re less exposed to rate increases that are largely outside your control.
Over time, that stability adds up. Homeowners who go solar lock in a more predictable energy cost — a meaningful advantage as utility rates continue their long-term upward trend nationwide.
Price of Energy: Indiana vs National Average
Evansville Area Utility Providers
In Evansville, IN, the primary electricity provider is CenterPoint Energy. Based on 2023 data — the most recent available — CenterPoint customers pay 17.2¢ per kilowatt-hour (kWh), the standard unit for measuring electricity costs.
That 2023 rate of 17.2¢/kWh sits above both the Indiana state average of 14.90¢/kWh and the national average of 16.0¢/kWh — meaning Evansville homeowners are paying more for electricity than most households across the country.
When local electricity rates run higher than average, the potential savings from solar installation in Evansville become more meaningful. Generating your own power means relying less on grid electricity priced above the national norm.
Evansville Utilities Electricity Rates
Indiana Solar Incentives
Evansville homeowners can take advantage of several solar incentives in Indiana that help reduce the upfront and long-term costs of solar installation.
Indiana offers statewide incentives that apply directly to Evansville residents — including a full property tax exemption on added home value, a 7% sales tax exemption on solar equipment, and a net billing policy that credits you for surplus energy sent to the grid.
Note that recent federal legislation eliminated the residential solar tax credit. However, if you lease solar through a program like LightReach, the provider claims the commercial ITC and typically passes those savings through via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Indiana Solar Property Tax Exemption | Property Tax Exemption | Indiana homeowners with solar installations are 100% exempt from paying additional property taxes on the added home value from their solar energy system. | Learn More |
| Indiana Solar Sales Tax Exemption | Sales Tax Exemption | Indiana exempts solar energy equipment — including panels, racking, and inverters — from the state’s 7% sales tax, saving homeowners thousands of dollars upfront. | Learn More |
| Indiana Excess Distributed Generation (EDG) — Net Billing Policy | Net Metering | Indiana’s Excess Distributed Generation (EDG) policy allows solar homeowners to receive bill credits for surplus electricity sent to the grid, replacing the former net metering program for new installations. | Learn More |
Indiana’s Renewable Energy Property Tax Exemption ensures that the increased home value resulting from a solar installation is completely excluded from your property tax assessment. For any solar system installed after December 31, 2011, the assessed value of the system is fully exempt — meaning you won’t pay a single extra dollar in property taxes because of your solar panels. On average, this saves Indiana homeowners an estimated $124 per year.
The exemption applies to solar, wind, geothermal, and hydroelectric devices. It is available to property owners (not renters), but does cover mobile homes and other types of residences fitted with solar energy systems. To claim the exemption, property owners must complete Form 18865 and submit it to their local county auditor’s office.
This is a permanent, ongoing benefit — once approved, you continue to receive the exemption each year without reapplying. Residents of Evansville should contact their local county auditor or assessor to confirm eligibility and obtain the necessary forms.
When you purchase a solar energy system in Indiana, the major components — including solar modules, racking hardware, and inverters — are exempt from Indiana’s 7% state sales tax under the state’s sales tax exemption for electrical generating equipment. On a typical $28,000 solar installation, this exemption saves homeowners nearly $2,000 instantly at the point of purchase.
To take advantage of this exemption, you (or your solar installer) must provide the seller with a properly completed Indiana General Sales Tax Exemption Certificate (Form ST-105) at the time of purchase. This is a straightforward process that most reputable solar installers are familiar with and can assist you with.
This exemption applies automatically to qualifying solar equipment and requires no post-purchase application or approval. It is one of Indiana’s most accessible and immediate solar financial benefits, reducing your out-of-pocket installation cost from day one.
Indiana replaced traditional net metering with the Excess Distributed Generation (EDG) program for new solar customers. Under EDG, when your solar panels produce more electricity than your home uses, the surplus is sent to the grid and you receive a credit on your utility bill. However, unlike true net metering, the credit rate is based on the average wholesale price of electricity for the prior year plus 25% — which is significantly lower than the retail rate you pay for electricity. For example, AES Indiana’s current EDG credit rate is approximately 3.935 cents per kWh sent back to the grid.
Customers who installed solar systems before 2018 are grandfathered into full net metering until July 1, 2047. Systems installed between 2018 and the end of the net metering era for new customers receive full net metering until July 1, 2032. All new solar installations after that transition period are subject to the EDG rate. As of 2022, utility companies in Indiana are no longer required to offer true net metering for new solar installations.
The EDG program is administered through your individual utility provider. Homeowners in Evansville should contact their utility directly to understand the specific EDG credit rate applicable to their account and to complete the interconnection process required before your solar system can be connected to the grid.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Indiana incentives.
Get a Free QuoteEvansville Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Evansville gets around 200 sunny days per year, with humid summers and mild winters. Despite occasional cloud cover, a well-designed solar system can still produce great results year-round.
Solar Production in Evansville by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Evansville
We’ve mapped every solar installation across the U.S. — and Evansville is part of the story. Explore the map below to see which neighborhoods in your community have already made the switch to solar. Click any hexagon to see how many homes in that area are generating their own clean energy.
Leasing Solar Panels
If paying the full cost of a solar system upfront isn’t the right fit for your household, Palmetto offers an alternative through LightReach — a solar lease program available to eligible homeowners in Indiana. With a lease, you pay a fixed monthly amount (for example, $81/month for a medium-sized home in Evansville) rather than a large upfront investment. Palmetto owns and maintains the system, so you don’t have to worry about repairs or performance monitoring.
This is different from a Power Purchase Agreement (PPA), where you’d pay per kilowatt-hour of electricity produced. With a lease, your monthly payment stays predictable year-round. Either way, the annual savings tend to be similar — but a lease offers more billing consistency, which many homeowners prefer. To learn more about how these options compare, visit our solar buy or lease guide.
Beyond the predictable payment, leasing through LightReach comes with real practical benefits over a cash purchase. Palmetto handles all maintenance and includes a 90% production guarantee, so if the system underperforms, you’re protected. There are no upfront costs to recoup and no loan to manage. For Evansville homeowners who want to reduce their electricity bill without a large financial commitment, leasing is a straightforward way to get started with solar.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes sense for many Evansville homeowners. With around 200 sunny days per year and CenterPoint Energy rates at 17.2¢/kWh — above the national average — local residents have a real opportunity to reduce their electricity bills. Based on actual installations, a typical Evansville home can save around ~$43,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach lease removes that barrier entirely. Evansville homeowners can go solar with no money down for as little as $81/month and start saving from day one.
Evansville does not have traditional net metering. Indiana replaced it with the Excess Distributed Generation (EDG) program for new solar customers. Under EDG, surplus electricity sent to the grid earns a bill credit based on the prior year’s average wholesale rate plus 25% — significantly lower than the retail rate you pay.
For Evansville homeowners served by CenterPoint Energy, the EDG credit rate is approximately 3.935 cents per kWh. Homeowners who installed solar before 2018 remain grandfathered into full net metering until July 1, 2047.
Yes, solar panels can increase your home value in Evansville. According to a Zillow study, homes with solar panels sell for an average of 4.1% more than comparable homes without them. On a $250,000 home in Evansville, that could mean over $10,000 in added value.
Indiana also offers a full property tax exemption on the added home value from solar — meaning you gain the equity benefit without paying higher property taxes. It’s a meaningful financial advantage for Evansville homeowners looking to protect and grow their investment.
For Evansville homeowners, the most accessible option is Palmetto’s LightReach lease — go solar for as little as $81/month with no upfront cost. Palmetto owns and maintains the system, passing solar savings directly to you. Use the calculator above to see your personalized estimate.
If you prefer a cash purchase, a typical medium-sized Evansville home requires a 6.38 kW system at around $20,340. Note that following the Big Beautiful Bill, the federal 30% residential solar tax credit is no longer available for cash purchases.
For many Evansville homeowners, solar is financially worthwhile — especially with a lease option. With Palmetto’s LightReach lease, your monthly payment is typically less than your current electricity bill, meaning you can start saving from day one with no upfront investment required.
Evansville homeowners using CenterPoint Energy pay 17.2¢/kWh — above the national average. Over time, that adds up. A typical home here can save an estimated ~$43,000 over 25 years, making solar a practical long-term financial decision.
Palmetto Solar is a top choice for Evansville homeowners. As a national company with a strong local install network, we’ve served 20,000+ customers across 31 states with an approval rating over 85%. Evansville residents like Ne Thomas and Jim Martin have shared positive experiences with our installation process and ongoing savings.
We offer some of the most flexible financing options available, including our LightReach lease — go solar for as little as $81/month with no upfront cost. Palmetto handles all maintenance and backs every system with a 90% production guarantee.
Palmetto’s LightReach is an all-inclusive solar lease — one monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 6.38 kW system in Evansville, IN, the estimated monthly lease payment is approximately $81/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — a key advantage now that the residential ITC is no longer available for cash purchases. Most Evansville homeowners start saving from day one.