Assumes 3%/yr rate increases, 0.5%/yr panel degradation and no federal tax credit (the 30% §25D credit ended for systems installed after Dec 31, 2025). How we calculate
Data approachEIA rates · NREL sun hours · 2026 federal policy · methodology
A typical 9 kW solar system in Indiana costs about $27,000 installed in 2026 (modeled at $3.00 per watt) and saves roughly $1,370 in year one at the statewide average rate. That gives a simple payback near 20 years, or about 16 years if rates keep rising 3% a year, and about $19,800 in modeled 25-year net savings. No federal credit is included, because the 30% homeowner credit ended for systems installed after December 31, 2025. Indiana’s Excess Distributed Generation (EDG) rules, which credit exports far below retail, are the other main factor.
Updated October 4, 2026. Indiana’s average residential rate was about 16.2¢/kWh in 2025 (EIA), and monthly 2026 readings have run higher, roughly 16.7¢ in July and 18.2¢ in May. Our model uses 4.5 peak sun hours a day, an assumption based on NREL solar-resource data; check your address in NREL’s PVWatts. This guide shows the math at three rates so you can use the one on your bill. The full model is on our methodology page, and state data is on the Indiana solar page.
📋 Key Insights
What Do Duke Energy Indiana Customers Pay for Electricity?
Our baseline is Indiana’s statewide residential average of about 16.2¢/kWh (EIA, 2025 annual). Your all-in rate, including fixed charges, riders and taxes, can differ, so check your own bill.
The Indiana Utility Regulatory Commission (IURC) issued its order in Duke Energy Indiana’s rate case on January 29, 2025. Duke said the order raises bills about 11% on average, about 13% for residential customers, in two steps: Feb. 27, 2025 and early 2026. To find your effective rate, divide your total bill by the kWh you used. That number is what each kWh of solar you use yourself is worth.
Duke also offers an optional residential time-of-use (TOU) rate with different on-peak and off-peak prices. TOU can help households that shift laundry, dishwashing and EV charging, and it improves the case for a battery. The time-of-use savings calculator estimates what shifting is worth for you.
Your effective rate
Year-1 savings (9 kW, 0.70 offset)
Simple payback on $27,000
Payback with 3%/yr rate rises
25-yr net savings
14.0¢ (below current state average)
~$1,190
~23 yrs
~18 yrs
~$13,400
16.2¢ (EIA 2025 state average, baseline)
~$1,370
~20 yrs
~16 yrs
~$19,800
18.2¢ (EIA May 2026 monthly average)
~$1,540
~18 yrs
~15 yrs
~$25,400
Assumptions: 9 kW × 4.5 sun hours × 365 × 0.82 ≈ 12,100 kWh/yr; 0.70 bill offset under EDG (modeling assumption); $3.00/W; 3% annual rate escalation (assumption); 0.5% annual degradation; no federal credit; excludes financing, inverter replacement and maintenance. Rates are statewide averages, not a specific Duke tariff.
Data visualization
Cumulative net position of a 9 kW system at three electricity rates. Each line starts at -$27,000 and crosses $0 at payback; modeled with 3% yearly rate rises and 0.5% yearly degradation. Source: EIA rates, Green Energy Calculators model 2026.
Chart summary: At the 16.2¢ baseline, the system’s cumulative savings cross the $27,000 cost around year 16 and reach about +$19,800 by year 25. At 14.0¢, break-even slips to about year 18 with +$13,400 at year 25. At 18.2¢, it comes near year 15 with about +$25,400. Every 1¢ of electricity price moves the 25-year result by roughly $3,000–$3,500 in this model.
⚖️ Policy & Net Metering
What Does Indiana’s EDG Program Pay Solar Owners in 2026?
Under EDG, exported solar earns 125% of the wholesale price of electricity, typically about 4–5.5¢ per kWh, compared with about 16¢ for grid power. Solar you use at home still saves the full retail rate.
A 2017 state law (SEA 309) phased out retail net metering. By mid-2022, new customers of the large investor-owned utilities were moved to EDG, which credits exports at 1.25 times the utility’s wholesale price. Duke Energy Indiana’s 2026 EDG credit is listed at about 5.5¢/kWh (Solar United Neighbors); Duke’s 2024 filing proposed about 4.3¢. The rate is updated yearly, so check Duke’s current Rider EDG before sizing a system. NIPSCO’s program is structured differently, so check its current tariff.
Earlier systems are generally grandfathered. Systems installed before 2018 keep retail net metering until 2047, and those installed from 2018 until each utility’s cutoff keep it until 2032. Rural electric membership cooperatives (REMCs) and municipal utilities set their own terms, so call your utility’s interconnection desk.
Because so much of the value comes from self-consumption, our model assumes a right-sized Indiana system offsets about 70% of the bill. That is a modeling assumption; your own load shape may be higher or lower. The solar net metering calculator lets you enter your utility’s EDG rate.
Data visualization
An exported kWh is worth about one-third of a self-used kWh. Indiana averages 16.2 cents per kWh at retail versus about 5.5 cents for Duke EDG exports. Source: EIA 2025; Solar United Neighbors 2026.
Chart summary: A kWh you use at home avoids the full retail price (about 16.2¢ on average), while a kWh you export earns about 5.5¢ at Duke, roughly 34% of the retail value. That gap is why self-consumption, right-sizing and time-shifting matter more under EDG than under net metering.
💰 System Cost
What Does Solar Really Cost for Duke Energy Indiana Customers?
A typical 9 kW system costs about $27,000 installed at our $3.00-per-watt modeled price, with no federal credit for 2026 installations. Indiana has no state solar tax credit or rebate.
System size
Panels (400 W)
Installed cost at $3.00/W
Federal credit (2026 install)
7 kW
18
$21,000
$0
9 kW (typical IN)
22–23
$27,000
$0
12 kW
30
$36,000
$0
Assumptions: $3.00/W is our modeled price, between EnergySage’s 2026 marketplace average of about $2.60/W and Lawrence Berkeley National Laboratory’s higher installed-price median. Excludes batteries and roof or electrical upgrades. A quote at $2.60/W would shorten payback.
Worked example (modeled, not a real customer):
Input / result
Value
System size
9.0 kW
Peak sun hours (model assumption)
4.5 per day
Annual production (kW × sun × 365 × 0.82)
~12,100 kWh
Electricity rate (EIA 2025 Indiana average)
16.2¢/kWh
Bill offset under EDG (assumption)
0.70
Year-1 savings (12,100 × $0.162 × 0.70)
~$1,370
Installed cost
$27,000
Simple payback (cost ÷ year-1 savings)
~20 years
25-year bill savings (3%/yr rate rises, 0.5%/yr degradation)
~$46,800
25-year net savings (savings minus $27,000)
~$19,800
Until December 31, 2025, homeowners could claim 30% under §25D, which would have cut this system’s net cost to $18,900. The One Big Beautiful Bill Act (Public Law 119-21) ended that credit for later expenditures. For the timeline, see our federal solar tax credit guide. Other states’ paybacks are compared in solar payback by state.
Run the numbers for your state
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🔋 Storage & Usage
How Can You Maximize Solar Value Under the EDG Rate?
Use as much of your solar as possible when it is produced. Every self-consumed kWh saves the full retail rate, while every exported kWh earns only the lower EDG credit.
Shift flexible loads to midday. Running the dishwasher, washer, dryer, pool pump or water heater between about 10 a.m. and 3 p.m. uses solar directly. EV owners gain the most, because a Level 2 charger running at midday can absorb much of the day’s output. The solar EV charging calculator estimates the value.
Size to what you use, not to 100% of annual kWh. A system covering roughly 80–90% of annual usage exports less and usually earns a better return per dollar than a larger one.
Consider a battery with a TOU rate or for backup. A home battery adds about $15,000 on average (EnergySage 2026), and no federal credit applies to 2026 installs. Storing midday surplus is worth about the retail rate minus the EDG credit per kWh, roughly 10¢ at today’s rates, which rarely repays the battery on its own. The case improves on Duke’s TOU rate or if you value outage protection. The battery storage calculator helps size one.
Get several quotes. Marketplace averages run near $2.60/W in 2026, so a quote well above $3.00/W deserves questions.
🏛️ Incentives
Which Indiana Solar Tax Breaks Remain, and What Is the Long-Term Outlook?
Indiana has no state solar tax credit or rebate, and the federal homeowner credit ended after 2025. What remains is a state property-tax deduction for solar, federal options aimed at businesses and lessors, and the long-term hedge against rising rates.
Incentive
Status for a 2026 install
Federal §25D credit (30%)
Ended for expenditures after Dec 31, 2025 (2025 installs claim on the 2025 return; unused credit carries forward)
Indiana state solar tax credit / rebate
None
Indiana property-tax deduction for solar
Available; confirm filing with your county auditor
Lease / PPA (§48E, installer-claimed)
Solar generally must begin construction by Jul 4, 2026, or be placed in service by end-2027; benefit reaches you only through the price
Business, farm, nonprofit solar
Federal rules changed in 2025; confirm eligibility with a tax professional. USDA REAP may help rural businesses (check current funding)
This is not tax advice; confirm with a tax professional. Check DSIRE for utility programs.
Long-term outlook: At the model’s 3% annual rate increase, the $1,370 first-year saving grows each year, so the 25-year total (about $46,800) is well above 25 × $1,370. After the $27,000 cost, that is about $19,800 net at the statewide average rate. At 14.0¢ the result is about $13,400, and at 18.2¢ about $25,400. If rates rise slower than 3%, or you move early, the result shrinks. For a personalized estimate, enter your own bill in the solar savings calculator.
Sources: IRS guidance on §25D and Public Law 119-21; EIA residential electricity prices (Indiana 2025 annual and 2026 monthly); IURC order of Jan. 29, 2025 and Duke Energy Indiana rate-case summary; DSIRE (Indiana net billing); Solar United Neighbors (2026 EDG rates); EnergySage 2026 solar cost data; Lawrence Berkeley National Laboratory Tracking the Sun; NREL PVWatts. Model details: methodology.
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No, not for a system you own. The 30% Residential Clean Energy Credit (§25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act (Public Law 119-21). Systems completed in 2025 are claimed on the 2025 return with IRS Form 5695, and unused credit can carry forward. With a lease or PPA, the installer may still claim a commercial credit and pass some value on in the price.
Not for new customers of the large investor-owned utilities. Since 2022, new solar customers of Duke Energy Indiana, AES Indiana, CenterPoint and Indiana Michigan Power are credited under Excess Distributed Generation (EDG), which pays 125% of the wholesale price for exports, typically about 4–5.5¢/kWh. NIPSCO's program is structured differently, and co-ops (REMCs) and municipal utilities set their own terms, so confirm with your utility.
About $27,000 for a 9 kW system at our $3.00-per-watt modeled price, roughly $21,000 for 7 kW and $36,000 for 12 kW, with no federal credit and no Indiana state rebate. EnergySage's 2026 marketplace average is about $2.60/W, while Lawrence Berkeley National Laboratory's installed-price data runs higher, so get several quotes.
It can be, but payback is long. At the 16.2¢/kWh statewide average, a 9 kW system saves about $1,370 in year one, for a simple payback near 20 years (about 16 years if rates rise 3% a year). At 14.0¢ payback is about 23 years, and at 18.2¢ about 18. The result depends on your rate, quote price and how much solar you use directly.
Usually only if you also value backup power. A battery lets you use midday surplus in the evening instead of exporting it for a few cents under EDG, but a home battery adds about $15,000 on average (EnergySage 2026), and no federal credit applies to 2026 installs. Bill savings alone rarely repay it. Duke's optional time-of-use rate improves the case.
Indiana solar by electric bill
See system size and payback for common monthly bills in Indiana.
17.04¢/kWh — Indiana average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
4.5 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
Net billing / reduced export credit — solar assumed to offset 70% of the bill. Indiana ended retail net metering for new customers in 2022; exports are credited at a lower instantaneous rate.
Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.