The benefits of going solar reach beyond your potential electric bill savings and reducing your environmental impact. There can be tax benefits associated with adding solar panels to your home as well. Indiana has several programs for residents to facilitate their transition to solar. Read below to find out the other advantages Indiana homeowners gain from going solar.
1. Property Tax Exemption
A recent study done by Zillow showed that the addition of solar panels to your home can potentially increase your home’s market value. Due to the renewable energy property tax exemption in place in Indiana, that increase in value is exempt from property taxes, meaning it cannot be counted when your property is assessed for taxes. No one wants to pay any more for their taxes, right?
2. Sales Tax Exemption
In addition to the property tax exemption, you are also exempt from sales tax costs associated with purchasing and installing your solar panels. Considering the cost of a solar installation, this can save you a substantial amount of money! This exemption lowers the barrier of entry to solar for Indiana residents.
3. Federal Solar Tax Credit
The federal government is also working to incentivize the use of solar panels by offering the Investment Tax Credit. This allows solar clients who bought their panels with cash or a loan to ultimately reduce the cost of their solar panel system by claiming a tax credit of up to 26% on their purchase. This percentage will be lowered at the end of 2022, so if you want to reap the full tax benefits of solar energy, now is the time to consider installation.
4. Net Metering
Solar energy systems producing less than 1 megawatt in electricity are eligible for net metering. This policy allows you to sell your unused excess solar energy back to the grid for credits on your future electric bills. This practice means that even when the grid is filling energy gaps in your home, you can still potentially save on your electricity bills and benefit from your solar panel system.
Enjoy Solar Tax Benefits In Indiana
If you’re wondering how you can get the full solar benefits that your state has to offer, contact our Pink Energy Indiana team here! We’re always happy to walk you through all of the financial options open to you as a new solar customer.