Solar payback in Indiana
A 7.7 kW home solar system in Indiana pays for itself in about 19.0 years at 2026 prices, with no federal tax credit. That ranks #42 of 51 states, where 1 is the fastest.
- Installed price
- $3.60/W
- national median, 2025
- Solar output
- 1,335 kWh
- per kW a year, Indianapolis weather
- Electricity rate
- 16.73¢/kWh
- average home rate, EIA
- Value of a solar kWh
- 14.2¢
- reduced credit for exports
Pays back in year 19
- Cost up front
- $27,720
- Saved per year
- $1,462
- Ahead after 25 years
- $8,825
Payback by quoted price and roof direction
Find your installer's price per watt (total price divided by system watts) to read your payback in Indiana. Nationally, cash buyers paid a median of $3.00 per watt in 2025 and loan buyers $4.50, because loan fees are often built into the price. East and west roofs make 14% and 15% less power than south here.
| Price per watt | 7.7 kW costs | South roof | East roof | West roof |
|---|---|---|---|---|
| $2.50 | $19,250 | 13.2 years | 15.3 years | 15.4 years |
| $3.00 | $23,100 | 15.8 years | 18.4 years | 18.5 years |
| $3.60 (national median) | $27,720 | 19.0 years | 22.1 years | 22.2 years |
| $4.00 | $30,800 | 21.1 years | 24.5 years | 24.7 years |
| $4.50 | $34,650 | 23.7 years | 27.6 years | 27.8 years |
System size barely changes payback here: a bigger system costs more and saves more in about the same proportion.
Questions about solar in Indiana
How does Indiana pay for solar power I send to the grid?
Indiana replaced net metering with excess distributed generation credits, about 75% of the retail rate. We assume you use 40% of your solar power at home, which makes the average solar kWh worth 14.2¢. This summary comes from secondary sources, so confirm it with your utility. Source.
How much did the end of the federal tax credit change payback in Indiana?
With the 30% credit that ended in 2025, the same system would have paid back in about 13.3 years instead of 19.0. The credit ended for systems installed after December 31, 2025. Leased systems and power purchase agreements can still pass on a business credit, but then you do not own the panels.
Is 1,335 kWh per kW a lot?
The range across states runs from about 922 kWh in Alaska to about 1,779 in the Southwest. Sunshine matters less than people expect: the electricity rate and how your utility credits exports move payback more.