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Add State and Local Incentives to the 30% Federal Tax Credit
Learn about solar incentives and solar rebates. Find out what is available to you through federal, state and local programs, as well as local utilities.
State and Local Solar Panel Rebates
Combining the Federal tax credit with state incentives you qualify for may significantly reduce the cost of your solar PV system.

Read more good news about these programs and important tips on qualifying below.
Federal Solar Tax Credit
30% of the cost of your Solar Electric System and installation can be deducted from your federal tax bill.

Read more about this credit and what qualifies.





Solar Incentives by State… Click on your state to see what is available.    
Solar States


— You may be able to afford a larger solar PV system than you originally thought!
— You may be able to add the battery backup system you were planning to buy in a year or two



The Good News About Solar System Incentives, Qualifications and Tips
Some solar incentive programs pay you back over time, based on the energy you generate. Other solar incentives are one-time payments of rebates or credits. Incentive requirements and definitions may vary between states.

Incentive types can be specifically for residential, schools, business, or industrial; or inclusive of all of them. Solar incentives are mainly for grid tied systems and are sometimes available for off grid systems.

The incentives may be only for solar photovoltaic (electric), for electricity generated by wind, or for solar thermal (hot water generation). Other types of incentives may incorporate multiple solar technologies.

Programs with yearly or periodic application dates have credits or rebate rates that may be stepped down over time.

To qualify for incentives, your solar system may have to be installed by a licensed Photovoltaic System Installer, and/or connected to the grid by a licensed Electrician. This may be particularly true for Grid-Tie (Grid-Intertied) systems.
Plan ahead and act quickly. Many incentive programs are time sensitive. First-come-first-served programs, such as lotteries, can be spoken for in minutes after the opening of their application date.

Be careful including incentives in your PV system's budget due to requirements and possible deadlines to meet before qualifying.

Always consult a tax professional in regards to your eligibility for tax incentives.





Solar Incentive Glossary
Battery Backup Systems
Battery backup systems can store electricity from the grid or a fuel-powered generator to provide emergency power when the grid goes down. It can also store energy created PV system to power appliances and lights at night after the sun goes down.

Feed in Tariffs,
a Performance Based Incentive, or PBI

(Available for Grid Tied Systems.)
Feed-in Tariffs are typically long term contracts with your local utility for performance-based compensation.

The contracts are typically a 15-25 year purchase agreement at a guaranteed rate. The rate may decrease over time as specified in the agreement. Feed-in Tariffs may ultimately pay for your PV system or even exceed your initial investment depending on the specifics in the contract.

Originally started in Germany in 1990 and restructured in 2000 to include the right to interconnect to the utility grid. It was designed as an incentive to promote cost-effective renewable energy use and advancements in technologies. Due to its success, the current German policy is the cornerstone for the creation of many feed-in tariff programs around the globe.

Green Building Programs
(May be available for Off-grid and/or Grid-tied Systems.)
Green Building Programs are generally for new construction and remodeling, or just adding a solar electric system. The most common incentives are reductions or waivers of building permit fees. Some state or local organizations offer coupons that reduce construction and/or installation costs to homeowners. The home or business owner usually gives the coupon to their program-authorized installer/contractor. Once the system is installed the installer/contractor can be reimbursed for the amount of the coupon by the program's organization.

Grid-Tied PV Systems
Grid tied systems are inter-connected to send energy back to the grid when your solar electric system creates more than you're using; and you can receive energy from the grid when you're using more electricity than your system is generating at the moment. Learn more about grid-tied solar systems.

Loans
(May be available for Off-grid and/or Grid-tied Systems.)
State or local governments may offer low or zero interest loans for renewable energy projects. Terms are typically 10 years or less. If you are going to purchase or remodel a home that you are going to add a solar system to you may also want to see the Energy Star website for information on Energy Improvement Mortgages (EIMs).

Property-Assessed Clean Energy (PACE) financing may be offered by states that have been authorized to participate in this program. The amount of the loan is determined by a special assessment of your property and is typically repaid over a period of years.

Check with your local banks and credit unions as they may offer renewable energy loans for less than the prime rate. Also consider that mortgage loans and home equity loans can offer several advantages: longer terms, lower interest rates than conventional bank loans, and tax-deductible interest.
Net Metering
(Available for Grid Tied Systems.)
As of January 2012, only four states do not have net metering policies ‐ South Dakota, Mississippi, Alabama and Tennessee. These programs are for utility customers who generate their own electricity and feed excess energy back into the grid. Net-metered customers may use grid energy when their electrical demand exceeds their solar electric system's output. Solar electric credit rates are applied to the customer's total electric use and are shown on the utility bills.

The credit rates and rules vary from state to state. Unused solar electric system credits may expire in a specified time period or they may be carried over from year to year. The credits may only be applied to the utility bill or you may be allowed to get a refund check at the end of a designated period, usually the end of the year.

Off-Grid PV Systems
Off grid systems do not feed energy back to the grid. You may be completely independent from the grid or you may be receiving grid electricity to supplement your system (Grid-Assisted). Learn more about off-grid solar systems.

Solar PV System (Photovoltaics)
A solar PV system uses photovoltaic panels (or modules) to create electricity. This powers appliances, lights, and other electric equipment.

Solar Thermal System
A solar thermal system uses panels (or modules) to heat water. The hot water is typically used instead of a water heater for everyday water use, or in a radiant heating system to warm the air.

State and Local Tax Incentives
(May be available for Off-grid and/or Grid-tied Systems.)
  • Personal tax incentives include income tax credits (dollar-for-dollar reduction on what you owe) and income tax deductions (reduces your taxable income).
  • Property tax exemptions, exclusions and credit incentives generally exclude the added value of the system from your yearly property tax. Abatements may reduce a percentage of your yearly property tax over time.
  • State sales tax incentives can be an exemption from or a credit towards the applicable sales tax.
Utility Rate Discounts & Rebates
(Available for Grid Tied Systems.)
Some utilities and state or local programs may offer temporarily reduced rates on utility bills, or one time rebates on the installation of solar systems and purchases of energy efficient appliances and/or HVAC systems.


Updated: 09/24/2016
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Indiana Solar Incentives
Updated: 09/24/2016
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INCENTIVE NAME: Renewable Energy Property Tax Exemption
CATEGORY: Financial Incentive
TYPE: Property Tax Incentive
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN01F
DETAILS:
Incentive Amount - Solar energy systems used for heating or cooling: out-of-pocket expenditures by the owner for the components and labor
Wind, hydroelectric, geothermal, solar thermal, solar PV, and other solar energy systems: the assessed value of the system
Maximum Incentive - None specified
Eligible System Size - None specified
Equipment Requirements - None specified
WEBSITE: http://www.in.gov/oed/2379.htm
LAST UPDATE: 12/11/2015

INCENTIVE NAME: Solar Easements & Rights Laws
CATEGORY: Regulatory Policy
TYPE: Solar/Wind Access Policy
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN02R
WEBSITE: http://www.in.gov/oed/2412.htm
LAST UPDATE: 05/12/2015

INCENTIVE NAME: Net Metering
CATEGORY: Regulatory Policy
TYPE: Net Metering
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN05R
DETAILS:
Applicable Utilities - Investor-owned utilities
System Capacity Limit - 1 MW
Aggregate Capacity Limit - 1% of utility's most recent peak summer load
Net Excess Generation - Credited to customer's next bill as a kWh credit (i.e., at retail rate); carries over indefinitely
Ownership of Renewable Energy Credits - Not addressed
Meter Aggregation - Not addressed
UTILITIES: Indianapolis Power & Light Co, Indiana Michigan Power Co, Northern Indiana Pub Serv Co, Southern Indiana Gas & Elec Co,
LAST UPDATE: 11/24/2015

INCENTIVE NAME: Interconnection Standards
CATEGORY: Regulatory Policy
TYPE: Interconnection
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN04R
DETAILS:
Applicable Utilities - Investor-owned utilities, regulated municipal utilities, regulated electric cooperatives
System Capacity Limit - No limit specified
Standard Agreement - Yes
Insurance Requirements - Amount specified by IURC for net-metered systems; not specified for other systems
External Disconnect Switch - Utility's discretion
Net Metering Required - No
UTILITIES: Indianapolis Power & Light Co, Indiana Michigan Power Co, Northern Indiana Pub Serv Co, Southern Indiana Gas & Elec Co,
LAST UPDATE: 05/12/2015

INCENTIVE NAME: Energy Efficient State Building Initiative
CATEGORY: Regulatory Policy
TYPE: Energy Standards for Public Buildings
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN08R
DETAILS:
Green Building Requirement - A rating of Silver on the USGBC LEED rating system
A two-globe rating on the Green Building Institute Green Globe rating system
An EPA Energy Star building rating
An equivalent rating under a system accredited under the American National Standards Institute (ANSI)
LAST UPDATE: 12/14/2015

INCENTIVE NAME: City of Bloomington - Green Building Requirements for Municipal Buildings
CATEGORY: Regulatory Policy
TYPE: Energy Standards for Public Buildings
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: IN10R
DETAILS:
Green Building Requirement - LEED-NC Silver
WEBSITE: http://bloomington.in.gov/sections/viewSection.php?section_id=449
LAST UPDATE: 12/14/2015

INCENTIVE NAME: Clean Energy Portfolio Standard
CATEGORY: Regulatory Policy
TYPE: Renewables Portfolio Standard
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN12R
DETAILS:
Standard - Average of 4% of electricity supplied between 2013 and 2018
Average of 7% between 2019 and 2024
Average of 10% in 2025
Technology Minimum - Not specified
Compliance Multipliers - N/A
REC Lifetime - N/A
Credit Trading/Tracking System - Yes
Alternative Compliance Payment - N/A
WEBSITE: http://www.in.gov/oed/2649.htm
LAST UPDATE: 11/20/2015

INCENTIVE NAME: City of Indianapolis - Green Building Incentive Program
CATEGORY: Financial Incentive
TYPE: Green Building Incentive
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: IN77F
DETAILS:
Permit Fee Waiver / Reduction - 30%-50% reduction in permit fees
Expedited Permitting Process - N/A
Density Bonus - N/A
WEBSITE: http://www.indy.gov/eGov/City/DPW/SustainIndy/Green/Pages/GreenBuildingIncentiveProgram.aspx
LAST UPDATE: 12/14/2015

INCENTIVE NAME: City of Bloomington - Sustainable Development Incentives
CATEGORY: Financial Incentive
TYPE: Green Building Incentive
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: IN81F
DETAILS:
Permit Fee Waiver / Reduction - 100% waivers of filing fees with the plan commission and/or board of zoning appeals, fees associated with right-of-way excavation permits, and sewer hook-on fees
Expedited Permitting Process - N/A
Density Bonus - N/A
WEBSITE: http://bloomington.in.gov/documents/viewDocument.php?document_id=2194
LAST UPDATE: 12/14/2015

INCENTIVE NAME: Sales and Use Tax Exemption for Electrical Generating Equipment
CATEGORY: Financial Incentive
TYPE: Sales Tax Incentive
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN82F
DETAILS:
Incentive Amount - The manufacturing exemption is dependent upon the extent that equipment is directly used in the direct production of tangible personal property.
Maximum Incentive - None specified
Equipment Requirements - See below
LAST UPDATE: 02/23/2016

INCENTIVE NAME: Community Conservation Challenge
CATEGORY: Financial Incentive
TYPE: Grant Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IN86F
DETAILS:
Incentive Amount - $25,000-$100,000
Maximum Incentive - $100,000
Equipment Requirements - A fleet is classified as five or more vehicles. Solar Electricity projects on existing rooftops and parking shade structures; or a 60kW system or smaller unit installed on the ground within the boundaries of an existing facility.20 kW or smaller Wind Turbines.20 kW or smaller Solar Thermal systems.5.5 tons of capacity or smaller Ground Source Heat Pumps.3 MMBTUs per hour or smaller Biomass Thermal System with appropriate Best Available Control Technologies.
BUDGET: $700,000 (Anticipated Approximate for 2015)
WEBSITE: http://www.in.gov/oed/2645.htm
LAST UPDATE: 07/27/2015

INCENTIVE NAME: NIPSCO - Feed-In Tariff
CATEGORY: Financial Incentive
TYPE: Feed-in Tariff
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
CODE: IN91F
DETAILS:
Incentive Amount - Wind 3 - 10 kW: $0.23 - $0.25/kWh
Wind 10 kW-200 kW: $0.15 - $0.138/kWh
Solar 5 kW - 10 kW: $0.17 - $0.1564/kWh
Solar 10 - 200 kW: $0.15/kWh - $0.138/kWh
Biomass 100kW - 1 MW: $0.0918/kWh
Maximum Incentive - Rates may not exceed the published tariff rate
Eligible System Size - 3 kW- 1 MW
Duration - Contract length shall not exceed 15 years.Purchase rate for energy shall be subject to an escalator of 2% per year
Equipment Requirements - Biomass and biogas must be operated with a sustainable resource.
Installation Requirements - All facilities must meet NIPSCO's interconnection standards and agreement
Ownership of Renewable Energy Credits - NIPSCO maintains the renewable energy credit
WEBSITE: http://www.nipsco.com/Our-Services/Connecting-to-the-Grid.aspx
UTILITIES: Northern Indiana Pub Serv Co,
LAST UPDATE: 10/05/2015

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