Indiana residential solar energy incentives

Renewable energy property tax exemption

Renewable energy systems that generate power using solar, wind, hydropower or geothermal technologies have a 100% property tax exemption.

This exemption is allowed each year the system is properly functioning.

Residential energy efficiency loan program - South Central Indiana REMC

This loan program provided by South Central Indiana REMC offers a 6% interest loan to residential customers interested in making energy efficiency improvements to their homes.

Loan amounts vary between $2,000 to $10,000

Systems and equipment must meet minimum requirements to qualify.

Customers who wish to apply for a loan must submit an Energy Efficient Loan application form.

There is a $25 processing fee for the application.

Utility rebate programs

Indiana has several utility rebate programs provided by municipal cities and utilities.

The majority of the rebate programs are for water heaters and heat pumps

Details on all the different programs are available online.

Residential renewable energy tax credit

This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.

Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.

The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.

This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion

This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.

The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.

Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages

This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.