South Bend, 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 typically increase your property’s assessed value. This exemption removes the added value of your solar system from your property tax assessment, so you won’t pay higher property taxes because of your solar investment. For example, if your solar system adds $5,000 to your home’s assessed value, that amount is deducted from your total assessment, lowering your annual property tax bill.

This benefit is available to homeowners, lessees (renters), and those buying property under contract in Indiana. Once approved, the exemption continues automatically each year without needing to reapply—you simply keep receiving the property tax reduction 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. The standard filing deadline is January 5th each year, though applications postmarked by that date are considered timely even if received later. New homeowners who close on a property as late as December 31st can still apply for the exemption for the following tax year.

It’s important to note that this is a deduction from your property’s assessed value, not a credit against taxes owed. The actual dollar savings will depend on your local property tax rate and the assessed value of your solar system. You can receive multiple deductions on the same property if you have more than one qualifying renewable energy device. If you become ineligible for the exemption at any point, you’re required to 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 or public schools). While this isn’t a direct homeowner incentive, it can reduce project costs when contractors pass these savings along to customers on qualifying installations.

To claim this exemption, purchasers must complete Form ST-105 and provide either an Indiana Registered Retail Merchant Certificate number or a valid state tax ID number from their home state. The exemption cannot be used for utilities, vehicles, watercraft, aircraft, or gasoline, and nonprofit organizations are not eligible to use this certificate. Contractors purchasing solar equipment for exempt projects must indicate this on the form and keep the certificate on file. If you’re a homeowner working with a solar contractor on a standard residential installation, this exemption typically won’t apply directly to your project, though contractors may qualify when working on certain government or public school solar installations.

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 your utility company’s grid. Your electric meter tracks both the energy you draw from the grid and the energy you contribute, essentially running backward when you’re producing excess power.

The financial benefit of net metering depends on your utility company’s specific policies and rates. Generally, you receive credits on your electric bill for the excess energy you provide to the grid, which you can use to offset the cost of electricity you draw from the grid during times when your solar panels aren’t producing enough power (like at night or on cloudy days). This helps reduce your overall electricity costs throughout the year. Indiana’s net metering policies vary by utility provider, so the exact credit rate and terms will depend on which company serves your area. It’s important to check with your local utility to understand their specific net metering program details and how credits are calculated on your monthly bill.