Indiana solar incentives come down to one thing in 2026: a credit on your electric bill for solar power you do not use yourself. Your utility sets the amount, and it is low. The state’s solar property tax deduction has ended, and we found no state rebate open for home systems when we checked. So the solar power you use at home is worth more than the power you send out.
Recently changed: a state law signed on April 15, 2025 ended the solar property tax deduction, back to January 1, 2025. AES Indiana’s credit rate changed on July 27, 2026 and NIPSCO’s on April 1, 2026. NIPSCO’s older program that bought all of a home’s solar power is closed to new applicants.
How does Indiana pay for solar power you send to the grid?
Indiana has five large power companies: Duke Energy Indiana, AES Indiana, NIPSCO, Indiana Michigan Power and CenterPoint Energy Indiana South. They are investor-owned utilities, which means private companies that the state regulates. One state law, Indiana Code 8-1-40, sets how all five pay for home solar.
The law calls your extra power excess distributed generation, or EDG. That is power your panels make at a moment when your home is not using it. It flows out through your meter to the grid.
Each utility credits that power at 1.25 times its average wholesale price from the year before. The wholesale price is what the utility pays for power on the regional market. It is far below the price on your bill.
Your meter counts power coming in and power going out separately. AES Indiana, NIPSCO and CenterPoint Energy count it as it happens. Duke Energy counts it in blocks of 30 minutes. So extra power at noon does not cancel the power you buy at night. The power you buy is billed at your normal price. The power you send out earns the lower credit.
Example: your panels send 100 kWh to the grid in a month. At AES Indiana that earns $5.43. If your home had used those 100 kWh, you would have avoided about $16.58 at the Indiana average price of 16.58 cents per kWh. Your own price is on your bill.
The credit lowers your bill in dollars. It cannot take the bill below your utility’s monthly minimum charge. Credit you do not use rolls forward to later bills for as long as you keep the account at that home.
Watch out: The credit is never a check. If you move out or close the account, the unused balance is lost.
What this means for the size of your system
A typical Indiana system is 7.92 kW and costs about $24,235. No Indiana program takes money off that price.
The law also limits a home system to your average yearly electricity use. Panels beyond what your home uses directly mostly add power that earns the low credit. Ask your installer how much of the system’s power your home will use as it is made.
Source: AES Indiana, Rider 16 (Excess Distributed Generation)
What does each Indiana utility credit per kWh?
Your utility’s name is at the top of your electric bill. Each one resets its rate at least once a year, so look at the date too.
| Utility | Credit per kWh sent out | In force since | 100 kWh sent out earn |
|---|---|---|---|
| CenterPoint Energy Indiana South | 5.561 cents per kWh | March 1, 2026 | $5.56 |
| AES Indiana | 5.4325 cents per kWh | July 27, 2026 | $5.43 |
| NIPSCO | 4.9685 cents per kWh | April 1, 2026 | $4.97 |
| Duke Energy Indiana | Not confirmed | The rate sheet on Duke’s site was dated March 13, 2024 when we last read it | Ask Duke for today’s rate in writing |
| Indiana Michigan Power | Not confirmed | We could not read its rate sheet | Ask the utility for today’s rate in writing |
A rate sheet is the utility’s official price list. Utilities also call it a rider or a tariff. AES Indiana’s is Rider 16. NIPSCO’s is Rider 689. CenterPoint Energy’s is Rider EDG.
Watch out: The savings in a quote are an estimate. They depend on a rate that changes every year. Ask the installer to write the credit rate and its date into the proposal, and check both against your utility’s rate sheet.
City utilities and REMCs write their own rules
The state law covers only the five companies above. A city-owned utility or an REMC (rural electric membership cooperative, a power company owned by its members) sets its own solar rules and its own credit. Ask yours for both in writing before you collect quotes.
Source: Indiana Utility Regulatory Commission, net metering resource page
Get Indiana quotes, then check the rate in each one
Your ZIP code starts a quote request with installers that serve your area. Compare how much of the power each design expects you to use at home.
- Your utility sets the creditAES Indiana, NIPSCO and CenterPoint Energy each have a different rate. A quote should name yours.
- No cost, no pressureComparing quotes is free, and you never have to sign.
- Shared only with matched installersYour details go to the installers you are matched with.
Which Indiana solar incentives have ended?
Four. The first one still shows up as open in many guides.
- Solar property tax deduction: Indiana used to give a property tax deduction for solar power devices. Senate Enrolled Act 1 of 2025, signed on April 15, 2025, ended it for assessment dates on or after January 1, 2025. An assessment is the value your county puts on your home for tax. County auditors stopped applying the deduction with the property tax bills due in 2026. That includes homes that had it before. There is nothing to file.
- Full net metering: net metering gave a full credit. One kWh sent out cancelled one kWh bought. It closed to new systems at each of the five utilities no later than July 1, 2022.
- NIPSCO feed-in tariff: this program bought all the power from a home system at a fixed price. NIPSCO says all of its categories are closed to new applicants. Existing contracts continue.
- Federal tax credit: the federal credit for home solar ended for systems finished after December 31, 2025. A quote for a system you buy should not subtract it.
Watch out: Indiana’s Office of Energy Development page still said solar may qualify for property tax deductions when we checked. That is out of date. The Department of Local Government Finance, the agency for property tax rules, lists the solar deduction as expired.
Sales tax: get it as a line in the quote
Ask your installer whether the quote includes Indiana sales tax, and ask for it as its own line. If the installer says the system is free of sales tax, ask which rule applies and check it with your tax preparer.
Does an Indiana home with older panels keep full net metering?
Yes, for a set time, if the system joined net metering before its utility closed the program. The old terms stay with the system at that home, so a new owner can keep them.
- On net metering by December 31, 2017: full credits until July 1, 2047.
- Joined later, before the utility closed the program: full credits until July 1, 2032.
- After those dates: extra power earns the utility’s lower credit, like a new system.
Watch out: Removing or replacing the system ends the old terms early. State guidance can count a new inverter with a different power rating as a replacement. A repair does not count. The inverter is the box that turns solar power into household power. Ask the utility before you change anything. If you are buying such a home, ask the seller for a bill that shows the net metering terms.
When an Indiana bill credit will not match the quote
- You lease the panels. The state law covers systems owned by the customer. AES Indiana’s rate sheet says the system must be owned and run by the customer. Ask the leasing company in writing how your extra power is treated.
- Your power comes from a city utility or an REMC. The state credit rule does not apply to them. Their credit can be different.
- The quote subtracts a property tax deduction or a federal tax credit. The deduction ended for assessment dates from January 1, 2025. The federal credit ended for systems finished after December 31, 2025.
- The quote counts extra power at the price you pay. That was net metering. It closed to new systems no later than July 1, 2022. Extra power now earns the lower credit in the table above.
- You are a Duke Energy or Indiana Michigan Power customer and the quote shows no dated rate. We could not confirm either utility’s current rate. Get it from the utility in writing.
- You expect to move with a credit balance. Unused credit is lost when you close the account at that home.
The steps to an Indiana bill credit, in order
- Before you sign: find your utility’s current rate. Use the table above, then check the date on the utility’s own rate sheet.You.
- Before you sign: read the quote for three things. The credit rate with its date. How much of the power your home uses as it is made. No federal credit and no property tax deduction.You, with your installer.
- Your installer applies to connect the system. This is the interconnection application: the request to connect your system to the utility’s grid. You also sign an interconnection agreement with the utility. Both come before the system is switched on. AES Indiana also asks for proof of liability insurance and a licensed electrician’s sign-off.Your installer files. You sign.
- The utility sets up your meter. The meter must count power in and power out separately. AES Indiana and CenterPoint Energy install it at their own cost. CenterPoint Energy then sends a Permission to Operate. Do not switch the system on before you have it.Your utility.
- After switch-on: read your first bills. Look for the kWh you sent out and the credit rate. Compare the rate with your utility’s rate sheet.You. The utility applies the credit.
Compare Indiana quotes that show your utility’s credit rate
Enter your ZIP code to request quotes from installers in your area. Ask each one which credit rate it used, and the date of that rate.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- Free, no-obligation quotesRequest quotes from local installers. You decide if you go ahead.
- Home questions firstA few questions about your home come first. Name, email and phone come at the end.
- Test each quoteUse the rate table on this page to check the credit in every proposal.
More Indiana solar guides
Indiana solar incentive questions
Does Indiana Have a Solar Tax Credit?
Not the federal one. The federal credit for home solar ended for systems finished after December 31, 2025, and Indiana’s solar property tax deduction ended for assessment dates from January 1, 2025. If a quote lists an Indiana income tax credit, ask for the credit’s name and tax form, and check it with your tax preparer before you count on it.
Does Indiana Still Have Net Metering?
Not for new systems at the five large utilities. Net metering closed there no later than July 1, 2022. New systems get a lower credit for power sent to the grid. Homes that were already on net metering keep it until July 1, 2032 or July 1, 2047.
What Is the EDG Rate in Indiana?
EDG means excess distributed generation: solar power you send to the grid. Each utility credits it at 1.25 times its average wholesale price from the year before. The current rates are 5.561 cents per kWh at CenterPoint Energy, 5.4325 cents per kWh at AES Indiana and 4.9685 cents per kWh at NIPSCO. We could not confirm the current rates at Duke Energy and Indiana Michigan Power.
Is There Still a Solar Property Tax Deduction in Indiana?
No. Senate Enrolled Act 1 of 2025 ended it for assessment dates on or after January 1, 2025. County auditors stopped applying it with the property tax bills due in 2026, also for homes that had it before.
Does Indiana Have Solar Rebates?
We found no state or utility rebate open for home solar panels in Indiana when we checked. NIPSCO’s feed-in tariff, which bought a home’s solar power at a fixed price, is closed to new applicants. The help that is left is the bill credit for power you send to the grid.
Do Leased Solar Panels Get the Indiana Bill Credit?
The state law covers systems owned by the customer, and AES Indiana’s rate sheet says the same. If you lease, ask the leasing company and your utility in writing how extra power is credited before you sign.
Sources (13)
- AES Indiana, Standard Contract Rider No. 16, Excess Distributed Generation, effective July 27, 2026 (checked September 30, 2026): aesindiana.com
- NIPSCO, Rider 689, Excess Distributed Generation (checked September 30, 2026): nipsco.com
- CenterPoint Energy Indiana South, Tariff for Electric Service, Rider EDG, Sheet No. 53 (checked September 30, 2026): centerpointenergy.com
- CenterPoint Energy, Customer Generation: excess distributed generation and net metering (checked September 30, 2026): centerpointenergy.com
- NIPSCO, Net Metering program page (checked September 30, 2026): nipsco.com
- NIPSCO, Feed-in Tariff program page (checked September 30, 2026): nipsco.com
- Indiana Utility Regulatory Commission, net metering resource page (checked September 29, 2026): in.gov
- Indiana Utility Regulatory Commission, handout reproducing Indiana Code 8-1-40 (checked September 29, 2026): in.gov
- Indiana Utility Regulatory Commission, General Administrative Order 2017-2 on Indiana Code 8-1-40-14 (checked September 29, 2026): in.gov
- Indiana Department of Local Government Finance, memo on legislation affecting deductions, exemptions and credits, June 12, 2025 (checked September 29, 2026): in.gov
- Indiana Department of Local Government Finance, Deductions and credits (checked September 29, 2026): in.gov
- IRS, Residential Clean Energy Credit (checked September 30, 2026): irs.gov
- EcoGen Solar Cost Index, Q2 2026, Indiana: ecogenamerica.com
