In Indiana, many solar energy installations are established due to solar incentives, rebates, and regulations that can benefit property owners. Added to that are the ample sunlight and the more significant energy necessities of Hoosiers that makes solar investment valuable.
Check out below to learn how a property owner can take full advantage of all the benefits of going solar in the "Hoosier State."
The Federal Investment Tax Credit (ITC) is available to Indiana property owners. It will substantially influence property owners who purchase their solar panel systems outright. The ITC is undoubtedly the significant tax solar incentive for Indiana. This credit currently amounts to 26% of your solar system's cost. In 2023, the tax credits for installations will drop to 22%. This is one of many reasons why it makes sense to go solar without delay.
And if you invest in a solar panel by the end of 2032, the federal tax credit is 30% of the price of your solar panel system. This means 30% off the system's total cost, including equipment, labor, and permitting.
Sample Calculation: Assuming your solar energy system costs $20,000, you would be eligible for a federal solar tax credit of $6,000, which is 30% of the system's cost.
By 2033, the federal tax credit will fall to 26%.
Indiana Renewable Portfolio Standards (RPS) has a vast opportunity, also known as the Comprehensive Hoosier Option to Incentivize Cleaner Energy (CHOICE). This program is voluntary for utility companies aiming for 10% of energy through renewable sources by 2025, a much easier goal than many other states have given themselves.
Indiana net metering law is pretty good, a bonus for Indiana residents, smoothing the way to get a solar system connected to the public grid. Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility. This allows customers to offset the cost of the power they draw from the utility company with credits they earn on their production. If your system produces more energy than you need, the excess power is sold to the grid, which you see as a credit on your power bill. Property owners who install solar systems can be given complete solar incentives up to 2032.
Indiana offers considerable Performance-Based Incentives (PBIs), which are Ohio solar incentives based on the actual power your system generates. The state calls them Power Performance Payments, and NIPSCO is serving them. Your payment for the power generated by your renewable energy system is determined by the amount of kilowatt-hours (kWh) or BTUs it produces. Solar Renewable Energy Credits (SRECs) are certificates that acknowledge the energy generated by your solar system. The value of these credits varies by the fundamental principles of supply and demand. SRECs are an excellent way to help your solar system pay for itself.
Indiana property owners who purchase solar panels earn a sales tax exemption. The exemption covers 100% of the sales tax on the cost of your installed solar system. Considering that the "Hoosier state" sales tax amounts to 7%, this will account for substantial savings.
Investing in a solar system in Indiana is worthwhile since the value of your property will not be reassessed after adding a solar system. Every property owner in Indiana who invests in solar panels will be exempted from paying property taxes corresponding to the expansion of property value as an outcome of including the solar energy system. You will continue to pay property tax based on the value of your property before installing the solar system.
The Indiana Solar Easements Laws support the property owner to collaborate with their neighbors to ensure accessibility to solar installation and guarantee sufficient sunlight coverage. The solar easement laws prohibit the planning and zoning officials from obstructing the property owner's solar system.
There are tons of benefits to investing in solar energy. Aside from contributing to the environment by lessening carbon emissions and decreasing the dependence on fossil energy, you can seize the opportunity to cut the cost of the increasing electricity rates from utility companies through solar incentives and rebates.
Find out today what Indiana solar incentives and rebates you qualify for!
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