Solar Panel Cost in Indiana (2026): Price, Payback, Incentives

Q: How much do solar panels cost in Indiana?

At the state median installed price of $3.60 per watt (estimate), a 8.1 kW (estimate) system that covers a typical home's use costs about $29,200 (estimate) before incentives. Quotes vary with roof, equipment and installer.

Solar Panel Cost in Indiana

A typical Indiana home uses 901 kWh a month^[1] of electricity. Covering that with solar takes a system of about 8.1 kW est.^[1,2], which costs roughly $25,000 to $33,500 est.^[1,2,3] before incentives at the state's median installed price. With Indiana's average residential price of 17.04¢ per kWh^[4], our model puts payback at about 21 years est.^[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

Indiana solar at a glance

Average electricity price17.04¢/kWh^[4]Jan–Aug 2026 average (preliminary)

Average home use901 kWh/mo^[1]2024 average

Solar output per kW1,332 kWh/yr^[2]PVWatts estimate for Indianapolis

Median installed price$3.60/W^[3]Estimate, before incentives

Typical system8.1 kWSized to cover 100% of use

Typical price$29,200Estimate, before incentives

Year-1 savings$1,210Estimate

Payback21 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: AES Indiana credits exports from new solar customers at about 5.43¢ per kWh; we use it for Indiana. Other utilities differ. Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Indiana by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Indiana.

Estimated cost, output and payback by system size in Indiana
System	Price before incentives^[3]	After incentives	kWh in year 1^[2]	Year-1 savings^[4]^[5]	Payback (years)
4 kW	$14,400	$14,400	5,330	$600	21
6 kW	$21,600	$21,600	7,990	$900	21
8 kW	$28,800	$28,800	10,660	$1,200	21
10 kW	$36,000	$36,000	13,320	$1,500	21
12 kW	$43,200	$43,200	15,980	$1,800	21

Incentives that lower the price in Indiana

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027^[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who: Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline: December 31, 2027
Checked: November 5, 2026

All Indiana incentives, including utility and local programs →

How Indiana utilities credit your solar

Indiana investor-owned utilities credit new solar customers under Excess Distributed Generation (EDG) riders: energy sent to the grid at any moment is measured separately and credited at 1.25 times the utility's prior-year average marginal energy price, far below retail. Unused credits carry forward indefinitely.^[5]

We have not added every Indiana utility yet, so the estimates on this page use the state-level rule: AES Indiana credits exports from new solar customers at about 5.43¢ per kWh; we use it for Indiana. Other utilities differ.^[5]

Full Indiana net metering and export-credit rules →

Next steps

Run the solar calculator with Indiana defaults and your own bill.
Indiana solar incentives
Indiana net metering and export credits
How to vet installers in Indiana
Spot solar sales red flags and compare financing before you sign.

Frequently asked questions

How much do solar panels cost in Indiana?

At the state median installed price of $3.60 per watt est.^[3], a 8.1 kW est.^[1,2] system that covers a typical home's use costs about $29,200 est.^[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Indiana?

For a cash purchase at the state's average electricity price of 17.04¢ per kWh^[4], our model estimates about 21 years est.^[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)^[7] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

Change log

Nov 5, 2026Monthly output per kW in Indianapolis updated to [76.3, 82.7, 110.0, 126.9, 132.1, 145.1, 144.1, 143.8, 124.2, 102.8, 77.9, 65.6] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).

Nov 5, 2026Average solar radiation on the panels in Indianapolis updated to 4.66 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).

Nov 5, 2026Solar output per kW in Indiana (PVWatts, Indianapolis) updated to 1331.6 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).

Nov 5, 2026What the rule says updated to “Excess Distributed Generation (DG) rate is the average marginal price of energy paid by the Company during the most recent calendar year, multiplied by one and twenty-five hundredths (1.25)” (AES Indiana Standard Contract Rider No. 16 Excess Distributed Generation (EDG), Effective July 27, 2026).