Indianapolis, IN Solar Panels

Indiana’s Property Tax Exemption allows homeowners, lessees, and contract buyers to reduce their property taxes when they install solar energy systems. This deduction works by subtracting the assessed value of your solar equipment from your property’s total assessed value each year. For example, if your home is assessed at $200,000 and your solar system adds $5,000 in value, you’ll only pay property taxes on $195,000. This means you avoid paying property taxes on the added value that solar brings to your home, resulting in ongoing annual savings.

To qualify, you must be a homeowner, lessee, or buyer under contract in Indiana with a solar energy system installed on your property. The application must be filed with your county assessor or auditor by January 5th using Form SES/WPD. The good news is that once approved, you don’t need to reapply each year—the deduction automatically continues annually as long as you remain eligible. If you become ineligible for any reason, you’re required to notify your county auditor.

This is a valuable ongoing benefit that reduces your property tax bill year after year for as long as you own your solar system. The deduction applies specifically to the equipment value, ensuring that investing in clean energy doesn’t increase your property tax burden. Contact your county assessor’s office for specific questions about your property’s assessed value and potential savings.

Indiana’s Sales Tax Exemption allows certain businesses and contractors to purchase solar equipment without paying the state’s 7% sales tax. This exemption is primarily designed for registered retail merchants, wholesalers, manufacturers, and contractors working on exempt projects (such as installations for government entities, public schools, or qualifying nonprofit organizations). While this isn’t a direct homeowner incentive, it can reduce your solar installation costs if your contractor qualifies and passes the savings along to you.

To claim this exemption, the purchasing business must complete Form ST-105 and provide valid Indiana tax identification numbers or out-of-state business registration. The exemption cannot be used for utility purchases, vehicles, watercraft, aircraft, or gasoline. It’s important to note that nonprofit organizations cannot issue this certificate themselves. If you’re a homeowner working with a solar contractor, ask whether they’re registered to claim this exemption and if they’ll pass the sales tax savings on to you—this could reduce your total project cost by up to 7% on eligible equipment purchases.

Net metering is a billing arrangement in Indiana that allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses—typically during sunny midday hours—that surplus electricity flows to the grid, and your electric meter essentially runs backward. You then use those credits to 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, specific details about Indiana’s current net metering rates, credit values, and program requirements are not available at this time. Net metering policies can vary by utility company and may include factors such as how credits are calculated, whether they roll over month-to-month, and what happens to unused credits at the end of the year. We recommend contacting your local utility provider directly to understand the specific net metering terms available in your area, including eligibility requirements and any capacity limits that may apply to residential solar installations.