Indiana Solar Rebates and Incentives

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.

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.

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.

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 - Buisness 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

04/02/2015

White County REMC - Residential Geothermal Heat Pump Rebate Program

IN

Financial Incentive

Rebate Program

08/21/2007

04/02/2015

NIPSCO Custom Commercial and Industrial Gas and Electric Incentive Program

IN

Financial Incentive

Rebate Program

10/15/2012

04/02/2015

City of Indianapolis - EcoHouse

IN

Financial Incentive

Loan Program

06/10/2011

04/02/2015

NIPSCO - Feed-In Tariff

IN

Financial Incentive

Feed-in Tariff

02/05/2015

04/02/2015

NIPSCO Small Business Direct Install Electric and Natural Gas Program

IN

Financial Incentive

Grant Program

04/02/2015

04/02/2015

NIPSCO Prescriptive Electric and Natural Gas Program

IN

Financial Incentive

Rebate Program

04/02/2015

04/02/2015

Weatherization Assistance Program (WAP)

US

Financial Incentive

Grant Program

03/31/2015

03/31/2015

Northeastern REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/20/2007

03/25/2015

Qualified Energy Conservation Bonds (QECBs)

US

Financial Incentive

Loan Program

10/23/2008

03/20/2015

U.S. Federal Government - Green Power Purchasing Goal

US

Regulatory Policy

Green Power Purchasing

02/19/2004

03/20/2015

Business Energy Investment Tax Credit (ITC)

US

Financial Incentive

Corporate Tax Credit

03/15/2002

03/18/2015

Low Income Home Energy Assistance Program (LIHEAP)

US

Financial Incentive

Grant Program

03/16/2015

03/16/2015

Interconnection Standards for Small Generators

US

Regulatory Policy

Interconnection

10/30/2007

03/16/2015

Tribal Energy Program Grant

US

Financial Incentive

Grant Program

05/01/2003

03/05/2015

Indianapolis Power & Light - Residential Energy Incentives Program

IN

Financial Incentive

Rebate Program

09/30/2010

02/26/2015

USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program

US

Financial Incentive

Grant Program

02/18/2015

02/19/2015

Carroll County REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

02/17/2015

Residential Renewable Energy Tax Credit

US

Financial Incentive

Personal Tax Credit

08/10/2005

02/16/2015

Residential Energy Conservation Subsidy Exclusion (Personal)

US

Financial Incentive

Personal Tax Exemption

03/05/2002

02/16/2015

Community Conservation Challenge

IN

Financial Incentive

Grant Program

10/10/2012

02/11/2015

USDA - Repowering Assistance Biorefinery Program

US

Financial Incentive

Grant Program

10/08/2012

02/06/2015

Harrison County REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

02/02/2015

Southern Indiana Power - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

01/12/2015

Orange County REMC - Energy Efficient Equipment Rebate Program

IN

Financial Incentive

Rebate Program

08/13/2007

01/12/2015

Parke County REMC - Energy Efficient Equipment Rebate Program

IN

Financial Incentive

Rebate Program

02/10/2010

01/12/2015

City of Bloomington - Green Building Requirements for Municipal Buildings

IN

Regulatory Policy

Energy Standards for Public Buildings

07/14/2009

01/12/2015

Southeastern Indiana REMC - Residential Energy Efficiency Rebate Program

IN

Financial Incentive

Rebate Program

08/05/2009

01/12/2015

Modified Accelerated Cost-Recovery System (MACRS)

US

Financial Incentive

Corporate Depreciation

03/15/2002

12/23/2014

Energy-Efficient Commercial Buildings Tax Deduction

US

Financial Incentive

Corporate Tax Deduction

01/10/2006

12/22/2014

Residential Energy Efficiency Tax Credit

US

Financial Incentive

Personal Tax Credit

01/10/2006

12/22/2014

Energy-Efficient New Homes Tax Credit for Home Builders

US

Financial Incentive

Corporate Tax Credit

01/10/2006

12/20/2014

USDA - Rural Energy for America Program (REAP) Grants

US

Financial Incentive

Grant Program

04/09/2003

12/09/2014

USDA - Rural Energy for America Program (REAP) Loan Guarantees

US

Financial Incentive

Loan Program

04/09/2003

12/09/2014

FHA PowerSaver Loan Program

US

Financial Incentive

Loan Program

12/04/2014

12/04/2014

USDA - High Energy Cost Grant Program

US

Financial Incentive

Grant Program

09/27/2010

11/20/2014

Interconnection Standards

IN

Regulatory Policy

Interconnection

02/10/2004

11/20/2014

U.S. Department of Energy - Loan Guarantee Program

US

Financial Incentive

Loan Program

09/12/2008

11/20/2014

Solar Easements & Rights Laws

IN

Regulatory Policy

Solar/Wind Access Policy

01/01/2000

11/05/2014

Building Energy Code

IN

Regulatory Policy

Building Energy Code

07/27/2006

11/03/2014

USDA - Biorefinery Assistance Program

US

Financial Incentive

Loan Program

10/04/2012

10/08/2014

Residential Energy Conservation Subsidy Exclusion (Corporate)

US

Financial Incentive

Corporate Tax Exemption

03/05/2002

10/06/2014

Energy-Efficient Mortgages

US

Financial Incentive

Loan Program

03/21/2002

10/06/2014

Clean Energy Portfolio Goal

IN

Regulatory Policy

Renewables Portfolio Standard

05/19/2011

08/27/2014

Net Metering

IN

Regulatory Policy

Net Metering

02/17/2005

08/26/2014

Renewable Energy Property Tax Exemption

IN

Financial Incentive

Property Tax Incentive

01/01/2000

06/27/2014

Electric Efficiency Standard

IN

Regulatory Policy

Energy Efficiency Resource Standard

12/15/2010

06/19/2014

Energy Goals and Standards for Federal Government

US

Regulatory Policy

Energy Standards for Public Buildings

06/19/2006

03/24/2014

Federal Appliance Standards

US

Regulatory Policy

Appliance/Equipment Efficiency Standards

06/30/2006

12/19/2012

Energy Efficient State Building Initiative

IN

Regulatory Policy

Energy Standards for Public Buildings

08/26/2008

11/14/2012

Clean Renewable Energy Bonds (CREBs)

US

Financial Incentive

Loan Program

05/02/2006

10/12/2012

 

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