How Much Does Solar Cost in Indiana

Sep 23

Written By Max Kennerk, SolarCommission.Org

IN THIS SOLAR GUIDE

How much does solar cost in Indiana for both residential and commercial projects?
What factors have driven solar pricing trends in Indiana over the past decade?
How do Indiana’s utility rules and policies impact solar payback and overall project economics?

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How Much Does Solar Cost in Indiana?

When Hoosiers begin researching solar energy, the first question is almost always: How much does it cost? The answer depends on several factors—system size, project type (residential vs. commercial), utility territory, and market conditions. Let’s break down what Indiana homeowners and businesses can expect to pay today, how prices have changed, and what has influenced these trends.

Key Takeaways

Residential solar in Indiana averages $2.50–$3.75/W, with typical system costs between $17,500–$26,250 before incentives.
Commercial projects benefit from economies of scale, often achieving $1.75–$2.50/W pricing.
Historical trends show dramatic declines since 2010, with recent stabilization influenced by supply chain and policy factors.
Indiana’s unique utility credit rules significantly impact payback, making utility-specific analysis essential.
Choosing a financially stable, experienced installer is as important as the price per watt when considering long-term system performance.

Residential Solar Costs in Indiana

For homeowners, the average installed cost of solar in Indiana (before tax credits) currently ranges from $2.50 to $3.75 per watt. For a typical 7 kW system, this translates into $17,500–$26,250 before incentives. With the federal tax credit (if available at the time of installation), the net cost drops significantly.

Key Residential Factors:

Utility Rules: Costs aren’t just about hardware—Indiana’s utility policies (EDG rules for IOUs, custom credit systems for REMCs and co-ops) affect payback and system sizing strategy.
Roof vs. Ground-Mount: Roof-mounted systems are usually cheaper, while ground-mounts add structural steel, trenching, and site prep costs.
Equipment Choices: Some installers push bulk-purchased panel models across all jobs, while others spec premium modules or inverters at a higher price point.

Commercial Solar Costs in Indiana

Commercial solar projects (think churches, warehouses, and factories) benefit from economies of scale. Costs typically land in the $1.75 to $2.50 per watt range depending on size, mounting type, and interconnection complexity.

A 100 kW rooftop project might cost around $200,000,
While a 1 MW ground-mounted system could run $1.8–2.2 million.

Drivers of Commercial Pricing:

Scale Efficiencies: Larger orders and installation crews bring the per-watt price down.
Interconnection Costs: Larger systems often require utility studies, transformer upgrades, or switchgear modifications.
Financing: Businesses may structure projects around depreciation schedules, power purchase agreements (though Indiana currently prohibits third-party PPA models for most customers), or loans—each with different impacts on project economics.

Historical Pricing Trends in Indiana

Solar in Indiana has followed national cost trends, though local factors have amplified or dampened them at different times:

2010–2015: Prices dropped rapidly as global panel manufacturing scaled up, making solar viable beyond early adopters.
2016–2019: Stable decline, with average residential prices hitting around $3.00–$3.50/W. Indiana’s first net metering caps were reached, driving urgency for some projects.
2020–2022: Pandemic-era supply chain issues (shipping delays, steel tariffs, inverter shortages) caused prices to rise temporarily—some projects jumped 10–15%.
2023–2025: Prices stabilized, hovering in the $2.50–$3.75/W residential range and $1.75–$2.50/W commercial. Inflation Reduction Act incentives increased demand nationally, but Indiana’s restrictive net metering policies tempered growth locally.

What Has Impacted Solar Costs in Indiana?

Global Manufacturing & Supply Chains: Panel prices are tied to global polysilicon supply, freight costs, and international trade disputes.
State Policy: Indiana’s early sunset of full net metering created uncertainty and reduced demand, slowing installer growth and limiting local price competition.
Installer Market Conditions: When finance companies or local installers close, homeowners lose service providers, and this reshuffling affects both pricing and trust in the market.
Project-Specific Costs: Labor, permitting, interconnection, and site conditions all shape the final bid.

What About Battery Storage Costs in Indiana?

In Indiana, the cost of battery storage varies widely depending on the size of the system and the customer’s goals. For a typical home, a single residential battery might add $10,000–$20,000 installed, but homes/farms that want extended backup or full off-grid capability often require multiple batteries, which can push costs into the $75,000 - $100,000 or more range or more.

On the commercial side, businesses may install small systems in the tens of thousands of dollars for limited backup, or they may invest several hundred thousand dollars—or even over a million—for large-scale storage that can handle critical operations or peak demand management. Ultimately, the price depends on how much backup power is needed, how long it’s expected to last, and whether the system is designed for occasional outages or full energy independence.

Final Thoughts

Solar costs in Indiana are still among the lowest they’ve ever been, even with recent supply chain fluctuations. Homeowners should expect to pay in the low-to-mid $20,000s for a typical system before tax incentives, while commercial projects often achieve sub-$2.50/W pricing on larger builds.

But the true measure of cost isn’t just the installation price—it’s the payback period based on your utility’s credit structure, your energy usage, and how well the system is designed for your site.

For anyone considering solar—whether a 7 kW residential array or a 1 MW commercial project—the best step is to compare multiple proposals, verify installer stability, and evaluate your utility’s credit rules carefully.

Download this free resource to help you compare multiple quotes.

If you need help, reach out to SolarCommission.Org.