Indiana

Indiana Rebates and Incentives Summary

Indiana

Indiana is hardly a leader in the clean energy revolution. In fact, the state is one among just a few that saw solar industry employment drop in 2014. That, combined with recent attacks in the legislature on the state’s net-metering program, could mean Indiana is moonwalking away from a bright solar future.

That said, there are still some solid incentives in Indiana that deliver it far from the bottom of the barrel in terms of solar policy. Unless House Bill 1320 passes and weakens it, Indiana has a strong net-metering program that credits consumers with distributed generation systems at the retail rate for the power they send back to the grid. The state’s utility regulators ordered mandatory net metering in 2004, which helped to spur solar industry growth in Indiana.

At the beginning of 2015, more than 1,400 Hoosiers worked in the solar industry, according to a report from the Solar Foundation. While 100 fewer than worked in solar the year before, it still suggests the state has a strong solar industry.

In addition to a strong net-metering policy, the state offers a property tax exemption for renewable energy technology. Under the renewable energy property tax exemption, program home owners and renters are eligible to receive 100 percent property tax exemption for installing renewable energy systems in their homes.

Despite some good incentives, Indiana still lacks a lot. It has no Renewable Energy Portfolio Standard.

Energy Savings Tax Credit

Program Type Tax Incentive
Technologies Solar Powered Roof Vent or Fans
Amount

One-half of the amount paid for labor and materials for the installation of a solar powered roof

vent or fan, or $1000

Required Documentation The installation date(s), proof of your costs for the installation of a solar powered roof
vent or fan, and a list of the persons or corporation that supplied labor or
materials for the installation of the solar powered roof vent or fan
Official Web Site http://www.in.gov/dor/reference/files/it40-annotated.pdf

The state of Indiana offers its residents a state income tax deduction for the installation of energy saving solar-powered roof vents and fans.

Roof vents and fans vent attic spaces in in the summer when hot air needs help escaping the house to reduce cooling and air conditioning costs. In the winter, solar-powered vents work to keep the warm air in the house and reduce heating bills.

Owners and tenants are both eligible for this state income tax deduction.

Renewable Energy Property Tax Exemption

Program Type Property Tax Incentive
Technologies

Solar Photovoltaics, Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Wind, Hydroelectric,

Geothermal Electric, Geothermal Heat Pumps, Solar Pool Heating, Geothermal Direct-Use

Amount 100 percent
Required Documentation Form 18865 filed with local county auditor
Official Web Site http://www.in.gov/dlgf/2440.htm

Indiana exempts renewable energy systems from property tax. It’s a relatively common incentive in most states, but an essential one. Without the exemption, rooftop solar installations would cost more and would create a permanent financial liability on a property.

No matter the value of a system, this program means homeowners won’t have to pay property taxes on the renewable energy equipment the install.

There are two exceptions to the property tax exemption. First, only solar PV systems installed after Dec. 31, 2011 qualify for the exemption. Second, solar heating and cooling equipment is only exempt up to the amount a homeowner spent to install it.

Indiana Net Metering

Program Type Net Metering
Technologies Photovoltaics, Wind, Small Hydroelectric
Amount Net excess generation credited to customer’s at retail rate; carries over indefinitely
Required Documentation Net-metered systems must comply with Indiana's interconnection standards
Official Web Site http://www.in.gov/iurc/2340.htm

Indiana home and business owners who install rooftop solar systems and connect to the grid are credited at the retail rate for excess power they generate and send back to the grid.

The state had long allowed net metering, but the Indiana Utility Regulatory Commission mandated in 2004 that all investor-owned utilities in the state offer retail rate net metering. That policy change encouraged solar industry growth.

According to the regulatory commission guidelines, a utility may limit the aggregate amount of net-metering (nameplate) capacity to 0.1 percent of its most recent summer peak load.

Of course, there have been moves in the legislature over recent years to weaken the net metering program. It’s hard to say if those efforts will be successful, but they have not been in other states.

Indiana Solar Power Financial Incentives

Financial Incentives

 

Renewable Electricity Production Tax Credit (PTC)

US

Financial Incentive

Corporate Tax Credit

03/11/2002

04/13/2015

Miami-Cass REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/20/2007

04/09/2015

NineStar Connect - Residential Energy Efficient Equipment Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

04/09/2015

Kosciusko REMC - Residential Geothermal and Air-source Heat Pump Rebate Program

IN

Financial Incentive

Rebate Program

08/20/2007

04/09/2015

Jasper County REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/20/2007

04/09/2015

Indiana Michigan Power - Commercial and Industrial Rebate Program

IN

Financial Incentive

Rebate Program

02/08/2011

04/09/2015

Noble REMC - Residential Energy Efficiency Rebate Incentives

IN

Financial Incentive

Rebate Program

04/09/2015

04/09/2015

Noble REMC - Business Energy Efficiency Rebate Incentives

IN

Financial Incentive

Rebate Program

04/09/2015

04/09/2015

LaGrange County REMC - Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

07/16/2009

04/08/2015

Duke Energy - Residential and Builder Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

09/26/2006

04/08/2015

Indianapolis Power & Light - Business Energy Incentives Program

IN

Financial Incentive

Rebate Program

09/30/2010

04/08/2015

Indiana Michigan Power - Energy Savings Rebate Program

IN

Financial Incentive

Rebate Program

02/08/2011

04/08/2015

Ohio Valley Gas Corporation - Residential and Small Commercial Natural Gas Incentive Program

IN

Financial Incentive

Rebate Program

02/04/2010

04/08/2015

Duke Energy - Commercial and Industrial Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

09/26/2006

04/08/2015

Johnson County REMC - Commercial Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

03/06/2013

04/08/2015

Johnson County REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

03/06/2013

04/08/2015

Dubois REC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

04/08/2015

Jackson County REMC - Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

04/08/2015

LaGrange County REMC - Business Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

04/08/2015

04/08/2015

Utilities District of Western Indiana REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

04/07/2015

South Central Indiana REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

09/01/2006

04/07/2015

NIPSCO (Gas & Electric) - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

11/25/2008

04/07/2015

Wabash Valley Power Association (28 Member Cooperatives) - Residential Energy Efficiency Program

IN

Financial Incentive

Rebate Program

02/22/2012

04/07/2015

WIN Energy REMC - Residential Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

04/07/2015

Vectren Energy Delivery of Indiana (Gas) - Commercial Energy Efficiency Rebates

IN

Financial Incentive

Rebate Program

09/09/2008

04/07/2015

Marshall County REMC - Geothermal and Heat Pump Rebate Program

IN

Financial Incentive

Rebate Program

08/20/2007

04/07/2015

Vectren Energy Deliver of Indiana (Electric) - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

09/09/2008

04/06/2015

Vectren Energy Delivery of Indiana (Gas) - Residential Energy Efficiency Rebates

IN

Financial Incentive

Rebate Program

09/08/2008

04/06/2015

Vectren Energy Delivery of Indiana (Electric) - Commercial New Construction Rebates

IN

Financial Incentive

Rebate Program

09/09/2008

04/06/2015

Citizens Gas - Commercial Efficiency Rebates

IN

Financial Incentive

Rebate Program

11/20/2008

04/06/2015

Citizens Gas - Residential Efficiency Rebates

IN

Financial Incentive

Rebate Program

11/20/2008

04/06/2015

Sales and Use Tax Exemption for Electrical Generating Equipment

IN

Financial Incentive

Sales Tax Incentive

02/08/2012

04/06/2015

City of Bloomington - Sustainable Development Incentives

IN

Financial Incentive

Green Building Incentive

10/11/2011

04/06/2015

Income Tax Deduction for Solar-Powered Roof Vents or Fans

IN

Financial Incentive

Personal Tax Deduction

02/15/2010

04/06/2015

City of Indianapolis - Green Building Incentive Program

IN

Financial Incentive

Green Building Incentive

06/10/2011

04/06/2015

Clark County REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

04/06/2015

Jay County REMC - Geothermal and Air-Source Heat Pump Rebate Program

IN

Financial Incentive

Rebate Program

08/20/2007

04/06/2015

Bartholomew County REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/09/2007

04/06/2015

Wabash County REMC - Residential Geothermal and Air-source Heat Pump Rebate Program

IN

Financial Incentive

Rebate Program

08/21/2007

04/06/2015

RushShelby Energy - Residential and Commercial Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

04/06/2015

Wabash Valley Power Association (28 Member Cooperatives) - Commercial and Industrial Energy Efficiency Program

IN

Financial Incentive

Rebate Program

02/24/2011

04/02/2015

Tipmont REMC - Energy Efficiency Equipment Rebate Program

IN

Financial Incentive

Rebate Program

08/21/2007