Fort Wayne, IN Solar Panels

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 Fort Wayne can 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 Fort Wayne should contact their utility directly to understand the specific EDG credit rate applicable to your account and to complete the interconnection process required before your solar system can be connected to the grid.

Northern Indiana Public Service Company (NIPSCO) offered a Feed-In Tariff (FIT) program that allowed residential solar customers to earn credits for electricity their systems generate — regardless of whether that energy was used on-site or exported to the grid. This program functioned similarly to Solar Renewable Energy Certificates (SRECs) offered in other states. Solar systems between 5 kW and 10 kW earned between $0.15 and $0.17 per kWh generated, while systems above 10 kW earned between $0.13 and $0.15 per kWh.

Important: As of the latest available information, the NIPSCO Feed-In Tariff program is closed to new applicants. Existing enrolled customers continue to receive their contracted rates. There is no application fee for Level 1 systems (up to 10 kW); Level 2 applications (greater than 10 kW up to 2 MW) carried a non-refundable fee of $50 plus $1.00 per kW.

NIPSCO customers in Fort Wayne who are not enrolled in the FIT program are instead subject to the standard EDG (Excess Distributed Generation) net billing policy. NIPSCO’s EDG rate is approximately $0.12 per kWh for solar systems between 5 kW and 10 kW sent to the grid. Check the NIPSCO website or contact them directly for the most current program availability and rates.