Solar Incentives in Carmel, IN
Complete guide to solar tax credits, rebates, and incentive programs available to Carmel homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Carmel homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Carmel, IN.
Indiana State Solar Incentives for Carmel Homeowners
Net Metering (Limited)
Net MeteringIndiana net metering is being phased down, with new solar customers receiving reduced compensation for excess generation.
Net Metering in Carmel, IN
Indiana's net metering has been restructured. New solar customers after July 2022 receive excess generation credits at approximately 125% of the average wholesale rate rather than the full retail rate.
Solar Renewable Energy Credits (SRECs) in Carmel
Indiana does not have an SREC market. The state's voluntary clean energy goals do not include solar-specific requirements.
Tax Exemptions in Carmel
How to Claim Solar Incentives in Carmel
- Install your solar system: Work with a qualified Carmel solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Indiana energy office or local Carmel utility to apply for available incentives.
- Set up net metering: Contact your utility in Carmel to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Carmel, IN
Carmel homeowners can take advantage of the 30% federal solar tax credit, plus 1 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.
The 30% federal tax credit alone can save Carmel homeowners approximately $5.3k on a typical system. Combined with Indiana state programs, total savings over 25 years can reach $27k or more.
Indiana's net metering has been restructured. New solar customers after July 2022 receive excess generation credits at approximately 125% of the average wholesale rate rather than the full retail rate.
To claim the 30% federal ITC, Carmel homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.
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