Solar resource
Your solar production in Indianapolis
4.66 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Indianapolis, IN. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
AES Indiana (Indianapolis Power & Light / IPL) electricity rate
$0.146/kWh residential
- Utility
- AES Indiana (Indianapolis Power & Light / IPL)
- Residential rate
- $0.146/kWh (blended)
AES Indiana serves Indianapolis and uses Rider 16 Excess Distributed Generation (EDG) for customers enrolling from July 1, 2022 forward. That is materially less generous than old full-retail net metering and is the main solar-economics differentiator for Indianapolis: savings come primarily from self-consumption, while exported generation is compensated under the post-net-metering EDG structure.
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Incentives
Available solar incentives in Indianapolis, IN
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| AES Indiana Rider 16 Excess Distributed Generation | Net Metering | Post-2022 export compensation under EDG tariff, not legacy full-retail net metering | Utility |
| Indiana — no major state residential solar tax credit | Exemption | No broad statewide residential solar tax credit or rebate | State |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $22240
- Federal ITC (30%)
- −$6672
- Net system cost
- $15,568
- Installed cost per watt
- $2.78/W
Tracking the Sun-style Midwest benchmark for residential systems, used as a practical planning estimate for Indianapolis.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $1,450
- Simple payback period
- 10.7 years
- 25-year net savings
- $34900
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Indianapolis
- Your panels capture central Indiana sun NREL PVWatts modeling for Indianapolis shows about 4.66 peak sun hours per day and roughly 10653 kWh per year from a standard 8 kW roof-mount system.
- You use solar production on site first The cleanest solar value in Indianapolis comes from offsetting your own daytime electricity purchases from AES Indiana. Every kilowatt-hour you consume on site is worth the local retail bill impact.
- Exports are less valuable after Indiana’s net-metering sunset Indiana moved away from traditional retail-rate net metering. AES Indiana now uses Rider 16 Excess Distributed Generation for new-enrollment customers, so exported power is less valuable than it used to be.
- The federal ITC cuts the upfront cost On a modeled $22,240 installed cost, the 30%% federal ITC is worth about $6,672, bringing net upfront cost to roughly $15,568 before financing effects.
- System sizing matters more in Indianapolis Because export value is weaker than legacy net metering, Indianapolis homeowners should focus on right-sizing the array to match household usage instead of oversizing for large annual exports.
- Long-run savings still compound as utility prices rise Even with reduced export economics, a well-sized Indianapolis system can still produce durable long-run savings as AES Indiana bills rise over time.
FAQ
Common solar savings questions for Indianapolis, IN
How much can I save with solar in Indianapolis, IN?
An 8 kW system in Indianapolis is modeled around 10653 kWh/year. With self-consumption-driven savings at an effective local bill rate of about $0.146/kWh, first-year savings are roughly $1,450 and simple payback is about 10.7 years after the federal tax credit.
Why is Indianapolis described as a reduced-incentive solar market?
Indiana sunset traditional net metering and AES Indiana now uses Rider 16 Excess Distributed Generation for newer customers. That means exported electricity is less valuable than under the older retail-credit structure.
Does AES Indiana still offer net metering?
For newer customers, the relevant framework is AES Indiana’s Rider 16 Excess Distributed Generation tariff rather than the older net-metering model. The practical result is weaker export economics than full retail net metering.
Is solar still worth it in Indianapolis after the net-metering sunset?
Yes, but the project should be sized carefully. Solar still works in Indianapolis because on-site consumption offsets real utility purchases, but the economics are not as generous as in states with strong retail-rate net metering.
Does Indiana offer a state solar tax credit?
Indiana does not offer a major statewide residential solar tax credit comparable to the top solar-incentive states. The federal ITC remains the main upfront incentive.
How many solar panels does an Indianapolis home need?
A typical Indianapolis household often lands in the 6–9 kW range depending on annual usage and roof space. Because exports are less valuable post-sunset, matching system size to actual usage is especially important.
Do I need a permit for solar in Indianapolis?
Yes. Rooftop solar usually requires local permitting and utility interconnection approval. If you are also planning a deck project, review the Indianapolis deck permit page so both scopes stay compliant.
Sources
Data sources and freshness
- https://developer.nrel.gov/docs/solar/pvwatts/v8/
- https://www.aesindiana.com/interconnections
- https://www.aesindiana.com/rates-tariffs
- https://www.in.gov/oucc/electric/key-cases-by-utility/ipl-rates/aes-indiana-distributed-generation-tariff/
- https://programs.dsireusa.org/system/program/IN
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-19.