For too long, homeowners'' associations (HOAs) have blocked many Hoosiers from installing solar panels on their own homes through unfair HOA rules against solar installations. In 2022, the Indiana state legislature passed a law to protect the property rights of Hoosiers who want to go solar. The law provides a clear path for homeowners in restrictive HOAs to get approval from their neighbors to install solar panels.
House Enrolled Act 1196 (or HEA 1196) protects anyone living in an HOA whose contract "prohibits, restricts, or limits the installation of solar energy systems by homeowners association members" or has unreasonably been denied a request to install solar panels. They can go through a two-step process to have their solar panels approved and then installed on their home.
If your HOA doesn''t prevent solar installations, nothing has changed for you. However, if you find yourself running up against prohibitions or restrictions on solar installations, this new law is for you!
In other words, if it takes the signatures of 60% of the members of an HOA to change the HOA covenant, then a homeowner needs that same number of signatures to have their solar installation approved. However, if it takes (for example) the signatures of 75% of the members of an HOA to change the covenant, then a member wanting to install solar only needs signatures from 65% of the HOA members.
If you''re still having problems after going through this process (for example, members of the HOA aren''t cooperating) or the process is too stressful (for example, you have too many members in the HOA to reach the needed number of signatures), please let us know your story. Sharing your story can lead to great impact—and may even help future efforts to further expand the rights of property owners to install solar panels on their own home in Indiana.
Watch this video showing how persistent advocacy from Joey Myles, an Indianapolis solar owner motivated by his own personal struggles to install solar panels over objections from his HOA, helped to pass Indiana''s HOA solar access law.
Solar United Neighbors does not discriminate on the basis of race, color, national origin, sex, disability, or age in its programs or activities. Solar United Neighbors is a 501(c)(3) nonprofit organization. EIN: 46-2462990
Compared to many other states in the U.S., Indiana is lacking in solar legislation. The state previously offered a net metering program that paid Hoosiers for their excess solar production, but that benefit recently expired for new installations.
Even so, Indiana homeowners shouldn’t be discouraged. Solar power can still greatly reduce their electricity costs over time and increase their property values. There are also still Indiana solar tax credits and other incentives available to help make a transition to solar power more affordable. This guide lays out the incentives Hoosiers should know about to make the best decision for their Indiana homes.
Installing a solar energy system is about more than simply purchasing the best solar panels for your Indiana home. If you’re like most homeowners, you’ll be looking for ways to save on your installation, too. There are no Indiana solar rebates at this time, but there are other incentives you can take advantage of.
If the value of your Indiana home increases after installing a solar power system (it usually will), your state property taxes won’t increase because of it. Remember, though, that this doesn''t mean you’re exempt from paying state property taxes.
If you live in an area served by the Northern Indiana Public Service Company (NIPSCO), you can enroll in the NIPSCO feed-in tariff program. This program allows homeowners generating renewable energy to sell excess solar power back to NIPSCO for a credit of up to $0.23 per kilowatt-hour (kWh). Though the program has limited availability, it does offer homeowners a chance to earn credits to cover their traditional electricity usage.
Certain components of a solar power system purchase in Indiana may be exempt from the state’s 7% sales tax. This includes solar modules, racking, inverters and other components directly involved in solar production. This exemption may not be available in all Indiana municipalities, so talk to your solar installer to learn whether you can qualify.
Indiana has solar easement laws in place to ensure that installed solar energy systems have access to direct sunlight. The laws help homeowners enter into voluntary agreements with neighbors to prevent shading and obstructions to sunlight. It also prevents homeowners associations (HOAs) from blocking solar power system installations.
The federal solar investment tax credit (ITC), also referred to as the Residential Clean Energy credit, is a federal incentive available to all U.S. residents. Under current federal law, the credit is for 30% of the entire cost of your solar panel system, including the equipment, labor and permitting required for installation. This means that if you pay $15,700 for a solar energy system, you’ll receive a 30% tax deduction of $4,710.
The credit only applies once and is limited to those who own their solar systems outright. This requires a cash purchase or a solar loan. Additionally, the 30% credit only applies to those purchasing their systems by 2032. In 2033, the credit will fall to 26%, then again to 22% in 2034. Unless congress renews the credit, it will expire completely after 2034.
Note: The federal tax credit is nonrefundable. Depending on your overall tax liability, you may only receive a portion of the credit, but the rest may roll over. You can work with a tax accountant to understand how a solar panel tax credit will impact your finances.
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Indiana no longer offers a statewide net metering program for new customers. Previously, this type of program gave solar owners financial credit for surplus energy their systems produced. The net metering program that Indiana used to have expired at the end of 2022 for new customers, eliminating many Indiana homeowners'' access to net metering benefits. Those whole installed systems before 2018 will receive net metering credits until 2047.
Some Indiana residents who build new systems may be eligible for a similar credit on their utility, called an Excess Distributed Generation (EDG). Solar United Neighbors can provide more information to start your research on this topic.
About Indiana solar panel laws
As the photovoltaic (PV) industry continues to evolve, advancements in Indiana solar panel laws have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Indiana solar panel laws for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Indiana solar panel laws featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
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