✅ Federal Incentives
30% Federal Tax Credit (ITC) for solar + battery systems (residential & commercial).
MACRS + Bonus Depreciation available for commercial systems.
Direct Pay (Elective Pay) allows tax-exempt entities to receive credits as cash payments.
Credit Carryover: Unused tax credits can often roll forward to future years.
✅ State Incentives
Property Tax Exemption: Solar systems do not increase property tax.
Sales Tax Exemption: Most solar components are exempt from Indiana’s 7% sales tax.
Local Incentives: Some counties/municipalities offer grants or financing - check locally.
No statewide rebate program currently exists.
✅ Utility Rules & Compensation
Net Metering Replaced by EDG (Excess Distributed Generation):
Under SEA 309, major utilities like AES Indiana, Duke, NIPSCO, and I&M now credit exported solar at a reduced rate (e.g. AES pays ~3.9¢/kWh).
Legacy Net Metering:
Systems before 2018: Grandfathered until 2047.
Systems 2018-mid-2022: Grandfathered until 2032 (if approved in time).
I&M CreateGreen / EDG Rider governs compensation and system size limits for new projects.
✅ For Nonprofits
Eligible for Direct Pay (must register with IRS).
Can use third-party ownership models (e.g., PPA or lease).
Must carefully analyze EDG tariffs and project cash flow due to reduced export compensation.
Summary
The 30% federal credit remains the most impactful incentive.
Indiana offers sales and property tax exemptions, but no broad state rebate.
Net metering is largely phased out; new systems get lower export rates under EDG.
Nonprofits can benefit from Direct Pay, but need to carefully assess financial viability under new utility rules.