Indiana · Tax exemption
IN Solar Property Tax Deduction
Removes a tax burden residential solar owners in Indiana would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Property tax deduction
- stated benefit
- Residential
- eligible customers
- 15.8 yr
- Indiana baseline payback
- 1
- other Indiana programs
What it means
In Indiana, a 6 kW system already pays back in about 15.8 years on ~$1,064/year of modeled savings, and the IN Solar Property Tax Deduction stacks on top of that, on top of any federal credit.
- Property tax d…
- stated benefit
- 15.8 yr
- baseline payback (pre-incentive)
- 2
- Indiana programs that stack
- none
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Indiana homeowners can deduct the assessed value of solar systems from property taxes.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Property tax deduction
- State electricity rate
- 13.8¢/kWh
- Indiana solar score
- 17/100
How Indiana compares to the U.S. average
Why this incentive matters more (or less) here - Indiana's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Indiana
The market this incentive operates in: total installed solar capacity in Indiana reported to the EIA.
How this incentive fits Indiana's solar picture
The IN Solar Property Tax Deduction removes a tax burden solar owners would otherwise carry, one of Indiana's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Property tax deduction. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Indiana averages 4.4 kWh/m²/day of usable sunlight and residential rates of 13.8¢/kWh, producing an estimated 7,709 kWh/year and $1,064 of annual utility offset on a typical 6 kW system costing $16,800. That baseline already implies a 15.8-year simple payback and a 25-year modeled net of roughly $9,800 before this incentive - every dollar this tax exemption delivers compresses that payback further.
Few other programs are tracked here, so this incentive carries most of the weight for Indiana solar buyers. Indiana has 2 solar incentive programs indexed in DSIRE. The state's net-metering policy is classified as none, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Indiana's full solar profile, score, irradiance, rates, payback, and every program you can claim. Indiana solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Frequently asked questions
What is the IN Solar Property Tax Deduction?
How does the IN Solar Property Tax Deduction work?
Who is eligible for the IN Solar Property Tax Deduction?
How does this incentive affect solar ROI in Indiana?
Are there other solar incentives in Indiana?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.