Indiana Solar Calculator & EDG Program Guide
Indiana's 2017 law (SEA 309) replaced traditional net metering with the Excess Distributed Generation (EDG) program for most utility customers — paying export credits at roughly 3–5¢/kWh rather than the full retail rate. Here's what Indiana homeowners actually need to know in 2026.
Federal Tax Credit Expired: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act. It is not available for systems installed in 2026 or later. Any guide still citing this credit for 2026 installations is outdated.
Indiana's Net Metering Phase-Out: SEA 309 and EDG
Indiana's 2017 law, Senate Enrolled Act 309, ended traditional 1:1 retail-rate net metering for new solar customers of the five largest investor-owned utilities. New customers were moved to the Excess Distributed Generation (EDG) program instead — a fundamentally different financial structure governed by the Indiana Utility Regulatory Commission (IURC).
The Five Utilities Covered by SEA 309
New customers of these utilities are on EDG, not traditional net metering:
- AES Indiana
- CenterPoint Energy Indiana (formerly Vectren)
- Duke Energy Indiana
- Indiana Michigan Power (I&M)
- NIPSCO
How the EDG Credit Rate Works
Prior year average wholesale cost + 25% — well below retail
The EDG credit rate is set by formula: the prior year's average wholesale electricity cost plus 25%. In practice, this has generally resulted in a rate in the roughly 3–5¢/kWh range.
What you pay for electricity
Roughly 14–19¢/kWh retail rate
What you earn for exports (EDG)
Roughly 3–5¢/kWh — about one-quarter of retail
This gap means that self-consumption is the key driver of solar economics under EDG. Every kilowatt-hour your system produces and you use directly saves you 14–19¢; every kilowatt-hour you export earns only 3–5¢. Right-sizing your system to match your daytime consumption — and shifting loads like EV charging, dishwashers, and laundry to solar-peak hours — matters significantly under Indiana's EDG structure.
Legal History: Monthly Netting Battle (2022–2023)
Solar advocates won, then lost — a real setback for Indiana solar owners
This legal history matters to current Indiana solar owners and anyone evaluating a new installation. Solar advocates initially won an appeals court ruling in January 2022 that preserved "monthly netting" for EDG customers — meaning credits could offset a customer's total usage across the full billing cycle, which was significantly more favorable than instantaneous or daily netting.
However, the Indiana Supreme Court overturned this ruling in early 2023, siding with the utilities. The practical result: EDG in Indiana today operates without the more favorable monthly netting treatment. This was a concrete, real-world setback for new solar owners compared to what had been briefly upheld by the lower court. When evaluating Indiana solar economics, be aware that this question was litigated and resolved in favor of the utilities.
Grandfathered Net Metering: Two Deadlines to Know
Indiana's phase-out created two distinct grandfathered classes. If you installed before SEA 309's cutoff dates, you are on a different — and more favorable — program than new customers. Confirm your status with your utility if there's any question.
Installed Before Dec 31, 2017
Protection through: July 1, 2047
Program: Full 1:1 retail-rate net metering credit
Credit rollover: Monthly, indefinitely while you remain a customer and keep the system
Note: Accumulated credits are generally erased if the system or account is sold or transferred.
Installed Jan 1, 2018 – Jul 1, 2022
Protection through: July 1, 2032
Program: Full 1:1 retail-rate net metering credit
Credit rollover: Monthly, indefinitely while you remain a customer and keep the system
Note: Accumulated credits are generally erased if the system or account is sold or transferred.
New installs in 2026: If you are installing a new system in 2026 with one of the five covered utilities, you are on EDG — not grandfathered net metering. The 2022 enrollment deadline has passed.
REMCs and Municipal Utilities: Check Directly
SEA 309 does not apply to all Indiana utilities
Indiana's SEA 309 only covered the five largest investor-owned utilities listed above. Rural Electric Membership Cooperatives (REMCs) and municipal utilities are not subject to SEA 309's net metering phase-out.
This means net metering availability for REMC or municipal customers depends entirely on each individual co-op or municipality's own policies — and policies vary. Some REMCs may offer favorable full-retail-rate net metering; others may not. Do not assume either that traditional net metering is available or that EDG terms apply if you're served by a co-op or municipal utility.
Action step: If you are served by an REMC or municipal utility in Indiana, contact your provider directly and ask specifically about their current solar interconnection and net metering/net billing policy before proceeding with an installation.
Indiana Solar Context at a Glance
~16–19¢/kWh
Near-national-average; self-consumption is key
4.2–5.1/day
Southern IN higher than northern IN
~3–5¢/kWh
Wholesale + 25%; well below retail rate
100% Exempt
IC § 6-1.1-12-26, Form 18865, county auditor
Indiana Solar Incentives
Property Tax Exemption (IC § 6-1.1-12-26)
Indiana Code § 6-1.1-12-26 provides a 100% property tax exemption on the added home value from a solar installation. A solar system that would otherwise raise your assessed value will not increase your property tax bill.
How to Claim It
File Form 18865 (Renewable Energy Property Tax Deduction) with your county auditor's office after installation. Once approved, it remains in effect as long as you own the system — no annual refiling required.
Sales Tax — Verify Before Assuming Exemption
Indiana's sales-tax exemption statute for solar and wind components is tied to specific purchaser types like utilities and power subsidiaries. It is genuinely unclear whether the exemption applies to a typical homeowner purchasing a residential system.
Do not assume you're exempt. Confirm sales tax treatment directly with your installer or the Indiana Department of Revenue before finalizing your project budget. Indiana's state sales tax rate is 7% — this is worth clarifying upfront.
No Indiana State Solar Tax Credit
Indiana does not currently offer a state income tax credit for residential solar installations. The financial case for Indiana solar in 2026 rests on utility savings through self-consumption, EDG credits for exports, and the property tax exemption.
Federal Tax Credit Expired (Section 25D)
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act. It does not apply to systems installed in 2026 or later. Any guide or installer quote referencing this credit for a 2026 installation is citing outdated law.
What Indiana Solar Economics Look Like in 2026
Indiana's solar landscape has changed materially since 2017. The combination of SEA 309's EDG program (replacing full-retail-rate net metering), the 2023 Indiana Supreme Court ruling removing favorable monthly netting, and the expiration of the federal Section 25D credit at the end of 2025 means the financial case for new Indiana solar installations looks different than guides written even a few years ago.
This doesn't make solar unworkable in Indiana — it means the calculus is more nuanced. At 14–19¢/kWh retail rates and 4.2–5.1 peak sun hours/day, Indiana has a real solar resource and meaningful savings potential from self-consumed production. The key discipline under EDG is right-sizing your system to your actual daytime load and maximizing self-consumption rather than maximizing production for export.
Get a detailed analysis from a local installer that uses your specific utility's current EDG rate, your actual consumption data, and honest assumptions about self-consumption percentage. Ask specifically whether your location might qualify for REMC or municipal utility service with different net metering terms.
Estimate Your Indiana Solar Savings
Enter your monthly electric bill to get a personalized estimate. For the most accurate analysis, confirm your utility's current EDG credit rate and self-consumption assumptions before making any final decisions.
Estimate Your Solar Savings
Find out how much you can save based on your location and current energy usage.
Frequently Asked Questions — Indiana Solar
Frequently Asked Questions
Everything you need to know about solar incentives, costs, and savings.
Indiana Solar Resources
Indiana Utility Regulatory Commission (IURC)
EDG program rules, filings, and utility oversight
AES Indiana — Distributed Generation
Current EDG rates and interconnection process
Duke Energy Indiana — Solar
EDG terms and residential solar program details
NIPSCO — Solar Program
Northern Indiana EDG rates and solar interconnection
Indiana Department of Revenue
Confirm sales tax treatment for residential solar
Indiana County Auditor — Form 18865
Property tax deduction filing information
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.