Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Export credits read October 1 to 7, 2026. Updated October 19, 2026.
A typical Indiana home system is 8.34 kW and costs about $24,770 in cash at $2.97 per watt. Before incentives, a new AES Indiana system pays for itself in about 23.2 years, because power you send to the grid earns 5.433¢, well under the price you pay. At NIPSCO and CenterPoint Energy Indiana South it takes 17 to 18 years.
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A new system at any of Indiana’s five investor-owned utilities gets no net metering. State law, Indiana Code 8-1-40, sets a credit instead for excess distributed generation, or EDG: the solar power your home is not using at that moment.
Last year’s average wholesale price, times 1.25. Each utility resets its rate at least once a year.
Duke Energy Indiana counts power in and out in 30-minute blocks. AES Indiana, NIPSCO and CenterPoint count it as it flows.
The same 100 kWh used at home would save about $16.90 at the state average price.
It carries to later bills while you keep the account at that home. It is never a check and cannot take a bill below the monthly minimum.
Simple payback before incentives from our per-utility figures of October 30, 2026, for the typical 8.34 kW system at $24,770 cash. Indiana’s figure is 20.3 years, weighted by the homes each of the four utilities with a figure serves; together they serve 47.6% of its homes (EIA-861, 2024), and Duke Energy Indiana has none yet.
Utility and export credit | Share sent out | Yearly savings | Simple payback |
|---|---|---|---|
AES Indiana: power sent out earns 5.433¢ (Rider 16, July 27, 2026) | 51.4% | $1,069 | 23.2 years |
Indiana Michigan Power: power sent out earns 5.466¢ (Rider EDG) | 47.2% | $1,193 | 20.8 years |
NIPSCO: power sent out earns 4.969¢ (Rider 689) | 58.1% | $1,352 | 18.3 years |
CenterPoint Energy Indiana South: power sent out earns 5.561¢ (Rider EDG) | 51.4% | $1,435 | 17.3 years |
Swipe the table sideways to see every column.
Power used at home as it is made saves your own price, so timing matters. Each 1,000 kWh you move from sending out to using at home, such as running a dishwasher or EV charger at midday, is worth about $81 a year at AES Indiana: 13.570¢ saved instead of 5.433¢ earned.
The name at the top of your electric bill decides what each kWh you send out earns. Every rate below changes at least once a year, so check its date too.
Rider 16, effective July 27, 2026. Our payback case uses this rate. AES installs the meter that counts power in and out at its own cost.
Next: ask for savings priced at 5.4325¢, not your full rate.
Same state formula, different cents. Duke has filed a higher rate that is not yet approved.
Next: get today’s rate and its date in writing.
The state credit law covers only the five companies in the table. A city-owned utility or a member-owned REMC sets its own solar terms.
Next: get its credit and any solar charges in writing.
| Utility | Credit per kWh sent out | Rate in force since | 100 kWh sent out earn |
|---|---|---|---|
| AES Indiana | 5.4325¢ | July 27, 2026 | $5.43 |
| CenterPoint Energy Indiana South | 5.561¢ | March 1, 2026 (resets each March 1) | $5.56 |
| Duke Energy Indiana | 4.0856¢ | Last approved rate; 5.5143¢ filed, pending | $4.09 |
| Indiana Michigan Power (I&M) | 5.466¢ | March 2026 billing month | $5.47 |
| NIPSCO | 4.9685¢ | April 1, 2026 | $4.97 |
Swipe the table sideways to see every column.
Duke Energy Indiana filed its yearly EDG update with the Indiana Utility Regulatory Commission in early 2026, at 5.5143¢. The filed sheet still read “Issued: Pending, Effective: Pending” on October 19, 2026, so 4.0856¢ stays the rate in force. A filing is not the rate you are paid until it takes effect. Indiana Michigan Power’s 5.466¢ is in force from the March 2026 billing month (Rider EDG, Second Revised Sheet No. 41.8, read October 19, 2026).
A rate sheet is also called a rider or a tariff. AES Indiana’s is Rider 16, NIPSCO’s is Rider 689 and CenterPoint’s is Rider EDG.
Homes that joined net metering before their utility closed it keep full credits for a set time. The terms stay with the system at that home, so a buyer can keep them.
| When the system joined | Full credit for power sent out until |
|---|---|
| On net metering by December 31, 2017 | July 1, 2047 |
| Joined later, before the utility closed net metering | July 1, 2032 |
| Connected after net metering closed | Never: it earns the EDG credit |
Removing or replacing the system ends them. State guidance can count a new inverter with a different power rating as a replacement; a repair does not count. Ask the utility before you change or add panels. If you are buying a home with panels, ask the seller for a bill that shows the net metering terms.
At the September 2026 benchmark of $2.97 per watt, 34th lowest of 51 states. These are modeled cash prices, not quotes we collected.
| Size (kW DC) | Cash price | Power made a year |
|---|---|---|
| 5 kW | $14,850 | 6,825 kWh |
| 8 kW | $23,760 | 10,920 kWh |
| 8.34 kW (typical) | $24,770 | 11,384 kWh |
| 10 kW | $29,700 | 13,650 kWh |
Nothing lowers the price of a home system in Indiana in 2026. The help that is left is the EDG bill credit.
Senate Enrolled Act 1, signed April 15, 2025, ended it for assessment dates from January 1, 2025, including homes that had it.
Closed to new systems at the five large utilities no later than July 1, 2022.
All categories are closed to new applicants.
Not for a system you own placed in service after December 31, 2025.
Way to pay | Who owns the panels | Who gets the EDG credit | Check before you sign |
|---|---|---|---|
Cash | You | You | The price with no incentive taken off |
Loan | You | You | Total financed vs. cash price; dealer fee |
Lease | The company | Ask in writing | The law and AES’s rate sheet cover systems the customer owns |
PPA | The company | Ask in writing | Price per kWh; transfer or buyout if you sell |
Swipe the table sideways to see every column.
Three of the 8 Indiana solar companies we rate on our Indiana companies page, A to Z, not ranked. Indiana licenses only plumbers at the state level, so ask each installer for the city or county license that covers your address. Facts from their own sites, read October 13 and 14, 2026.
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Ask each installer to write down your utility’s EDG rate, its date and the share of power you will use at home.
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CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About TrevorEditorial standardsCost Index methodologyVerified Installer methodology
