US residential solar · 2026 data

Solar Panels in Indiana

Q: "What is Duke Energy Indiana's current electricity rate per kWh?"

"As of early 2026, Duke Energy Indiana residential customers pay approximately 16–17 cents per kWh all-in, including base charges, trackers, and Indiana's 7% state sales tax. This follows a rate increase of roughly 13% approved by the IURC in January–February 2025, delivered in two phases: approximately 8% in February 2025 and a further 3% in early 2026. Exact rates vary slightly by usage tier and billing zone."

Q: "Does Indiana still have net metering for solar in 2026?"

"Traditional retail-rate net metering is no longer available to new solar customers served by Duke Energy Indiana or the other four major investor-owned utilities. Since 2022, new installations are enrolled in the Excess Distributed Generation (EDG) program, which credits excess solar exports at 125% of the avoided cost rate — roughly 3.4 cents per kWh, well below the retail rate. Customers of rural electric cooperatives or municipal utilities may have different and more favourable terms."

Q: "How much does a solar system cost for a Duke Energy Indiana customer?"

"Average installed costs in Indiana run approximately $2.87 per watt as of April 2026, putting a typical 13.4 kW system at roughly $38,000 to $39,000 before incentives. Indiana's 7% sales tax exemption saves around $2,660 on that purchase, and a property tax exemption covers the increased home value. The federal 30% residential ITC is no longer available for new homeowner-purchased systems following legislation enacted in 2025."

Q: "What is the solar payback period in Indiana?"

"Under current Duke Energy Indiana rates and the EDG export credit structure, payback periods for Indiana solar installations typically run 13 to 17 years, depending on system size, financing method, and self-consumption rate. Since systems last 25–30 years, most owners still accumulate 8–15 years of significant bill savings after breaking even — a solid long-term return, particularly as electricity rates continue rising."

Q: "Is battery storage worth adding to a solar system in Indiana?"

"Battery storage is more financially compelling in Indiana than in states with full retail net metering because EDG pays only around 3.4 cents per kWh for exported solar. A battery stores midday surplus for evening use, capturing full retail value instead. On Duke Energy's optional TOU tariff, the economics improve further. NREL data shows battery costs have dropped roughly 40% since 2020, making storage more accessible for Indiana homeowners pairing it with solar. *Data sources: Duke Energy Indiana rate case filings and IURC orders (Cause No. 46038, January–April 2025); Indiana OUCC Duke Energy rate case summary; Solar United Neighbors Indiana EDG resource pages; EnergySage Indiana solar cost data (April 2026); U.S. Energy Information Administration Indiana State Energy Profile; NREL U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks 2025; SEIA U.S. Solar Market Insight Q1 2026.*"

SAVE

$0+

Over 25 Years

$18,900 Cost after ITC

18.0 yrs Payback

9.0 kW Typical system

Most homeowners need:

21–25 panels typical
9.0 kW average system
$18,900 after tax credits
18.0 year payback

✓ Updated monthly ✓ NREL data ✓ Reviewed by solar experts ✓ IRS tax credit included

Updated June 9, 2026 · 11 min read ·By Mark Sullivan ·Reviewed by Green Energy Calculators Editorial Team

Calculate My Savings View Indiana Solar Data

Without solar vs with solar

25-year cost comparison for a $300/month US electric bill.

Without solar

25-year utility cost

$44,200

Rates rise ~3% per year (EIA avg.)

With solar

Net system cost

$18,900

After 30% federal ITC

Your savings

Difference

+$25,300

Estimated lifetime advantage

Author Mark Sullivan

Reviewed by Green Energy Calculators Editorial Team

Last updated Jun 9, 2026

Sizing formula kW = Annual kWh ÷ (Peak Sun Hours × 365 × 0.82)

Duke Energy Indiana’s average residential electricity rate reached approximately 16–17 cents per kWh in early 2026 — a direct result of the utility’s approved rate hike that added roughly 13% to the typical monthly bill in two steps across 2025 and 2026. For a household consuming 1,000 kWh per month, that translates to about $18.76 more every single month compared to 2024 bills. When your electricity costs are rising that fast, solar starts looking like a genuine hedge rather than just an environmental choice.

The picture for Indiana solar owners is more complicated than in most states, though. Indiana eliminated traditional net metering for new customers served by the five largest investor-owned utilities — including Duke Energy Indiana — in 2022, replacing it with a program called Excess Distributed Generation (EDG). Under EDG, the credit you earn for surplus solar power sent to the grid is set at 125% of the avoided cost rate, which in practice works out to roughly 3.4 to 4 cents per kWh. Compare that to the retail rate you pay of 16–17 cents, and the gap is stark. It fundamentally changes the math of solar ownership in Indiana.

That does not mean solar is a bad investment here — it means the strategy has shifted. Maximising the electricity your panels generate that you consume directly in your home is now far more valuable than producing excess power and exporting it. Understanding both Duke Energy’s current tariff structure and exactly what EDG pays is the starting point for any honest analysis of whether solar makes financial sense for your household.

Duke Energy Indiana’s Current Electricity Rates Explained

Duke Energy Indiana’s base residential rate received approval from the Indiana Utility Regulatory Commission (IURC) in January and February 2025, following a contested rate case the utility filed in April 2024. The company had originally requested a $491.5 million annual revenue increase — an amount that would have lifted average residential bills by around 16%. After intervention by the OUCC (Office of Utility Consumer Counselor) and IURC review, the approved increase came to approximately $295.7 million, implemented in two phases.

The practical result for a typical residential customer: bills for someone using 1,000 kWh per month rose by around $18.76 monthly in total across the two phases. The first increase of roughly 8% took effect February 27, 2025, with a further 3% step following in early 2026. That puts the fully-loaded retail rate — base charges, trackers, and taxes included — at approximately 16 to 17 cents per kWh for most Duke Energy Indiana residential customers in 2026. Indiana’s 7% state sales tax applies to all electric utility bills in the state, a layer many homeowners overlook when calculating their effective per-kWh cost.

Duke Energy also introduced a voluntary Time-of-Use (TOU) rate for residential customers as part of the 2025 rate case. Under this structure, on-peak hours carry a higher rate while off-peak and a new “discount period” carry lower rates than the standard tariff. For solar owners who pair panels with a battery storage system, TOU pricing creates a genuine opportunity: you can charge the battery during the discount period and draw from it during on-peak hours, effectively earning a larger spread on stored energy. Households willing to shift loads like dishwashers and laundry to off-peak windows can also save without any hardware beyond a programmable timer or smart thermostat. The time-of-use savings calculator can show exactly what that shift is worth in dollar terms given your current usage pattern.

According to the OUCC’s most recent survey of residential electric bills in Indiana, Duke Energy customers ranked fifth-highest among all IURC-regulated utilities. The rate trajectory — with a further partial step still subject to litigation as of early 2026 — means Duke Energy Indiana customers should plan for continued modest increases rather than assuming bills have stabilised at current levels.

What Indiana’s EDG Program Pays Solar Owners in 2026

The shift from net metering to EDG is the single most important policy fact any Indiana homeowner needs to understand before going solar. Under the old net metering framework, surplus solar power sent to the grid earned a credit equal to the full retail rate — essentially a one-for-one swap. If you exported 100 kWh, you got 100 kWh of credit against your next bill at the same rate you’d otherwise pay.

SEA 309, passed by the Indiana General Assembly in 2017, set the state on a path away from that model. By 2022, all five major investor-owned utilities — AES Indiana, CenterPoint, Duke Energy Indiana, Indiana Michigan Power (I&M), and NIPSCO — had transitioned new solar customers to EDG. The EDG credit rate is calculated as the average wholesale price of electricity paid by the utility in the prior calendar year, multiplied by 1.25 (that is, 125% of avoided cost). For Duke Energy Indiana customers, this rate has typically landed around 3.4 cents per kWh, though it is updated annually and can fluctuate with wholesale market conditions.

To make the gap concrete: at a retail rate of 17 cents and an EDG credit of 3.4 cents, you earn roughly 20 cents of value for every dollar’s worth of electricity you export. That is the core financial argument for designing your system to cover your own consumption rather than oversizing it for exports. Homeowners who installed solar before the EDG transition are grandfathered into traditional net metering on different timelines: systems installed before July 1, 2022 retain full retail-rate net metering until 2032 or 2047 depending on installation date, according to Solar United Neighbors.

Customers served by Indiana rural electric member cooperatives (REMCs) or municipal utilities may still have access to more favourable net metering terms — it varies by provider. If Duke Energy Indiana is not your utility, confirming your specific program before making a purchase decision is worth a direct call to your utility’s interconnection desk.

Bar chart comparing Duke Energy Indiana retail electricity rate versus EDG solar export credit rate per kWh in 2026 — **Indiana’s EDG credit pays a fraction of the retail rate.** Duke Energy Indiana customers pay approximately 17¢/kWh at retail but receive only around 3.4¢/kWh for exported solar — a gap of more than 13 cents that makes self-consumption the priority for any new installation. Source: IURC, Solar United Neighbors, EIA 2026.

The Real Cost of Solar Panels for Duke Energy Indiana Customers

As of April 2026, the average installed cost of a residential solar panel system in Indiana runs approximately $2.87 per watt before any incentives, according to EnergySage market data. For the average Indiana system size of around 13.4 kW — sized to cover a household consuming roughly 1,000 kWh per month — that works out to about $38,000 to $39,000 before incentives. Smaller systems in the 7–8 kW range come in at roughly $20,000 to $23,000 and may better suit households with modest usage or strong self-consumption habits under EDG. For a full price breakdown by system size and region, see our guide to How Much Do Solar Panels Cost in 2026? Complete US.

Indiana no longer has a state income tax credit for solar, and the federal 30% residential Investment Tax Credit (ITC) was eliminated for homeowner-purchased systems under legislation enacted in 2025. That is a significant change from the incentive picture of even two years ago, and it affects payback calculations materially. Two remaining incentives still reduce the effective cost: For state-by-state payback data, our guide to Solar Panel Payback Period by State is the most complete resource.

Sales tax exemption (7%): Indiana exempts solar equipment from state sales tax. On a $38,000 system, that is a saving of approximately $2,660 at the point of purchase — real upfront value even if it is no longer the headline benefit it once was alongside the federal ITC.

Property tax exemption (100%): Solar panels typically add value to a home, which in most states would trigger a higher property tax bill. Indiana provides a full exemption, meaning the assessed value increase from solar is not taxed. Over a 25-year system life, at a typical Indiana effective property tax rate of around 0.85% and a solar-related home value premium of $15,000–$20,000, that exemption prevents roughly $125–$170 per year in additional taxes — a cumulative saving of $3,000 to $4,000.

Given those parameters, Indiana solar payback periods in 2026 typically run 13 to 17 years depending on system size, financing method, and how effectively the homeowner shifts consumption to coincide with peak solar generation hours. That is longer than states with higher electricity rates — Ohio and Michigan face broadly similar timelines given comparable utility structures — but solar systems generally last 25 to 30 years, leaving a decade or more of near-free electricity production after breakeven.

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Strategies to Maximise Solar Value Under the EDG Rate

Because the EDG export rate is so low relative to retail, the guiding principle for Indiana solar owners is straightforward: use your solar electricity at the time you generate it. Every kilowatt-hour your panels produce that you consume directly in your home is worth the full retail rate — around 17 cents. Every kilowatt-hour you export earns only 3.4 cents. The difference in value is almost fivefold, which is why self-consumption strategy is the lever that separates a strong Indiana solar investment from a weak one.

Battery storage is the most effective solution for households away from home during peak solar generation hours (typically 10 a.m. to 3 p.m.). A battery system stores surplus midday production and releases it in the evening when your own consumption typically peaks. In Indiana’s rate environment, the return on a battery is stronger if you are also enrolled in Duke Energy’s voluntary TOU tariff — the spread between the discount-period charging cost and the on-peak discharge value improves the economics considerably. NREL cost benchmarking data shows residential battery storage costs have declined roughly 40% since 2020, making the combination more accessible than it was just a few years ago.

Shifting high-draw appliances to midday hours is a lower-cost approach that many households underestimate. Running your dishwasher, washing machine, or electric vehicle charger between 10 a.m. and 2 p.m. directly consumes solar output that would otherwise export at 3.4 cents. For EV owners this is particularly impactful — a Level 2 charger drawing 7–11 kW during solar peak hours can absorb a substantial share of daily panel output. Indiana homeowners with an electric vehicle can use the solar EV charging savings calculator to estimate the annual value of that combination given their specific commute and Duke Energy tariff.

System sizing matters more under EDG than it did under full retail net metering. Oversizing your array — once rewarded in states where excess exports earned full retail credit — is a poor strategy in Indiana. A system designed to cover roughly 80–90% of your annual consumption, with minimal export, will generally deliver a shorter payback than one sized to hit 100% offset or more. Work with an installer who understands Indiana’s EDG rate structure and can show you the self-consumption modelling before you sign any contract. Comparing Illinois and Wisconsin — where retail-rate net metering still exists in some utility territories — illustrates just how much the export compensation structure shapes the solar investment case. Indiana homeowners working with EDG need a tighter sizing strategy, but the savings opportunity is still real, particularly as Duke Energy rates continue their upward trajectory.

Indiana Solar Tax Exemptions and Long-Term Savings Outlook

Indiana does not offer a state income tax credit for solar, but the combination of the sales tax exemption and property tax exemption provides meaningful upfront and ongoing financial benefit. Together, they reduce the all-in cost of ownership in ways that matter over a 25-year system life, particularly for homeowners who plan to remain in the property long enough to reach full payback.

The sales tax exemption saves approximately $2,300 to $2,700 on a typical Duke Energy Indiana customer’s system at purchase, depending on final installed cost. The property tax exemption prevents an estimated $3,000 to $4,000 in additional taxes over the system’s lifetime, based on Indiana’s average effective property tax rate of around 0.85% and a solar-related home value increase of $15,000–$20,000. Neither incentive replaces the old federal ITC in dollar terms, but both are permanent features of Indiana law and apply equally to any system installed in 2026 and beyond.

According to NREL benchmarking data, average residential solar installation costs nationally have fallen more than 60% since 2014, though the pace of decline has moderated significantly in recent years. Indiana system costs have tracked that national trend. The lower electricity rates in Indiana compared to states like California or Massachusetts — where retail rates exceed 25–30 cents per kWh — mean annual bill savings are more modest, which is why Indiana payback timelines stretch longer than the national average.

SEIA data shows Indiana’s installed solar capacity growing steadily despite the EDG policy shift, with tens of thousands of residential systems now operating across the state. The EIA’s Indiana State Energy Profile confirms that residential electricity prices in the state rose roughly 10% between 2021 and 2024 alone — a trend that, if it continues, will steadily close the payback gap. For a household paying Duke Energy Indiana $170–$200 per month in electricity — squarely in range for a 1,000–1,200 kWh/month consumer at current rates — running a personalised estimate through the solar savings calculator based on your actual bill figures is the most direct way to see whether the numbers work for your home.

Frequently asked questions

Direct answers for US homeowners in Indiana.

What is Duke Energy Indiana's current electricity rate per kWh?

As of early 2026, Duke Energy Indiana residential customers pay approximately 16–17 cents per kWh all-in, including base charges, trackers, and Indiana's 7% state sales tax. This follows a rate increase of roughly 13% approved by the IURC in January–February 2025, delivered in two phases: approximately 8% in February 2025 and a further 3% in early 2026. Exact rates vary slightly by usage tier and billing zone.

Does Indiana still have net metering for solar in 2026?

How much does a solar system cost for a Duke Energy Indiana customer?

What is the solar payback period in Indiana?

Is battery storage worth adding to a solar system in Indiana?

Indiana solar by electric bill

See system size and payback for common monthly bills in Indiana.

$200 $200/month electric bill Panels · cost · payback → $300 $300/month electric bill Panels · cost · payback →

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Popular utility companies

Solar rules and net metering vary by utility — not just by state.

Duke Energy Indiana Central & south AES Indiana Indianapolis NIPSCO Northern IN Indiana Michigan Power Fort Wayne area Vectren Evansville REMCs Rural cooperatives

Methodology & data sources

Calculation method: System size uses NREL PVWatts derate factor (0.82). Costs based on SEIA 2026 installed cost ($2.75–$3.20/W). Payback uses net cost after 30% federal ITC (IRC Section 25D). Savings assume full-retail net metering unless noted.

Official sources: EIA state electricity rates · NREL PVWatts · Energy.gov ITC guide · DSIRE incentives · SEIA market data · IRS Publication 5695.

All figures are estimates for educational purposes — not tax, legal, or investment advice. Consult a licensed installer and CPA for your situation.