Fort Wayne, 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 won’t be penalized with higher property taxes for making a clean energy upgrade.

This benefit is available to homeowners, lessees, and those buying property under contract. Once approved, the deduction continues automatically each year without needing to reapply—you simply keep receiving the tax benefit annually as long as you own the system. To claim this exemption, you’ll need to file Form SES/WPD with your county assessor or auditor by January 5th following the year your solar system is installed. The application can be submitted by email, in person, or postmarked by mail on the deadline date.

It’s worth noting that you can receive this deduction even if you close on a new property as late as December 31st—you don’t need to have lived in the home during the previous year to qualify for the following year’s tax benefit. If you become ineligible for any reason (such as removing the system), you must notify your county auditor.

Indiana’s Sales Tax Exemption allows certain businesses and contractors to purchase solar energy equipment without paying the state’s 7% sales tax. This exemption is primarily designed for registered retail merchants, manufacturers, and contractors working on exempt projects (such as installations for government buildings, public schools, or nonprofit organizations). 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 their tax savings.

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 covers equipment purchases but specifically excludes utilities, vehicles, watercraft, aircraft, and gasoline. Nonprofit organizations cannot use this certificate. For homeowners considering solar, it’s worth asking your solar installer whether they qualify for this exemption and if any savings will be reflected in your project cost. Keep in mind that this exemption requires proper documentation and registration with tax authorities, and misuse can result in penalties for the business claiming it.

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—typically during sunny midday hours—that surplus power flows to your utility company’s grid. Your electric meter tracks both the energy you consume and the energy you export, essentially running backwards when you’re producing more than you’re using.

The financial benefit of net metering comes through credits on your electric bill. For each kilowatt-hour (kWh) of excess solar energy you send to the grid, you receive a credit that offsets 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. This means you only pay for your “net” energy use—the difference between what you consume and what you produce. Indiana’s net metering policy is available to residential solar customers with systems up to 1 megawatt in capacity. The specific credit rate and terms may vary by utility company, so it’s important to check with your local provider about their particular net metering program details and any capacity limits or enrollment requirements that may apply.