Solar Power in Indiana
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Exploring Solar Power in Indiana
There’s no doubt that solar power in Indiana is booming. With more than 33,714 homes across the Hoosier State drawing energy from Indiana solar power, this green energy source has quickly become an unqualified success. Several of the largest installations for solar energy in Indiana was completed. The 10.1-megawatt Indy Solar II in Indianapolis, one of the largest in the state, provides power to nearly 1,200 homes. Another solar farm in Lanesville was recently expanded to provide energy for more than 150 nearby homes. Best of all, there are several incentives available to make Indiana solar a smart and affordable investment.
Indiana Solar Incentives
Like many others, the Hoosier State has made a concerted effort to make solar panel installation Indiana a cost-effective choice. This includes utility incentive programs, state and federal incentives and a number of grant and financing options. To better understand how affordable solar power Indiana can be, let’s take a look at a few of the most popular programs available.
Utility Incentives
One of the most useful programs available in Indiana is net metering. Net metering programs allow homeowners to draw power from the grid when needed and send energy back to the grid during times of surplus production. Any energy sent back to the grid is then credited to the homeowner, which helps to pay for electricity costs during periods of lower solar production. Though each utility company has its own net metering policy, customers of Vectren, Duke Energy, Indianapolis Power & Light, Indiana Michigan Power and Northern Indiana Public Service Company receive credits at the current retail electricity rate.
Another option for consumers whose system capacities are between 5.0 and 200 kilowatts is NIPSCO’s Feed-in Tariff program. Though availability is limited, the Feed-in Tariff program provides another method for selling the energy produced by a solar panel system. A final option for investing in Indiana solar is a community solar program. Community solar is a venture in which people in the community can lease a number of panels in a large, communal solar farm rather than paying for their own solar panel installation Indiana.
One example of this is the Tipmont REMC Community Solar program.
State Incentives
It’s no secret that solar panel installation in Indiana is a substantial investment, but there are plenty of benefits to be gained.
One way Indiana makes solar more affordable is through the Renewable Energy Property Tax Exemption. This incentive provides a property tax exemption equal to the assessed value of any new solar panel system installed on the property.
Similarly, the Indiana Sales Tax Incentive for Electrical Generating Equipment means that much of the equipment used in the production of solar power in Indiana is exempt from state taxes. The Indiana Income Tax Deduction for Solar-Powered Roof Vents or Fans also provides tax incentives for certain solar energy equipment.
Federal Incentives
When it comes to solar panels in Indianapolis and elsewhere in Indiana, the largest federal incentive is the Federal Investment Tax Credit. The ITC offers a tax credit equal to 30 percent of the system’s cost. Similarly, businesses with solar systems are eligible for the 30 percent Business Energy Investment Tax Credit. Farms and other rural businesses may also qualify for the Rural Energy for America Program (REAP), which helps to secure financing through a combination of grants and loans.
The Modified Accelerated Cost Recovery System is yet another option for helping businesses manage the costs of solar energy Indiana. This system of depreciation deductions provides a mechanism for qualifying businesses to recoup their solar energy expenses over a period of five years. Finally, the Energy Efficient Mortgage program allows homeowners to use their FHA-insured mortgages to finance solar power in Indiana and certain other energy-efficient investments.
Solar Panels Indianapolis Credits
Solar system owners in Indiana can earn additional money for the energy they generate through the solar renewable energy credits (SRECs) trading system. In the SREC system, solar generators can earn a solar credit for every 1,000 kilowatt-hours they produce. Third-party services will then buy these credits and sell them to utility companies in other states. Those with larger solar energy systems may also opt to sell credits to utility companies themselves.
Grants for Solar Panel Installation in Indiana
Some homeowners, businesses and nonprofit organizations may also qualify for grants to help defray the costs of solar power in Indianapolis and elsewhere in the state. These grants are frequently offered at the local, state and federal government levels. Some programs may also be available through private ventures.
Solar energy in Indiana is a great investment and a powerful way to make a positive impact on the environment. If you’re considering installing solar panels in the Hoosier State, there are plenty of incentives and programs available to make your renewable energy goals a reality.
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