Is solar worth it in Indiana?
A 7.0 kW rooftop system near Indianapolis produces about 9,345 kWh a year. Priced against the 5 residential tariffs currently on file in Indiana, payback runs from 14 years on the best of them to 40 on the worst.
Why the tariff matters more than the panels
Two households in Indiana with identical roofs and identical systems can see paybacks 14 and 40 years apart, purely because they are on different tariffs. Solar produces at midday; households consume in the evening. Only 55% of what these panels make is used as it is made — the rest is exported, and what an exported kWh earns is set by the tariff and by state net metering rules, not by the hardware.
That is why the figures here are computed hour by hour against each real tariff rather than by taking a bill and assuming solar removes a share of it. How this is modeled →
Payback by tariff in Indiana
7.0 kW system at $3.00/W, household using 1000 kWh a month, no incentives. A range means the export credit is not filed with the tariff and the outcome depends on net metering rules — 5 of 5 tariffs here belong to a utility that reports residential net metering.
| Utility | Tariff | Structure | Annual saving | Payback |
|---|---|---|---|---|
| Duke Energy Indiana Inc | RS - Residential Service TOU | Time-of-use | $792–$1,483 | 14–27y |
| Duke Energy Indiana Inc | RS - Residential Service | Tiered | $715–$1,407 | 15–29y |
| Indianapolis Power & Light Co | RS - Residential - 0 - 325 KWH per month | Tiered | $714–$1,333 | 16–29y |
| Indianapolis Power & Light Co | RS - Residential - over 325 KWH per month | Tiered | $714–$1,333 | 16–29y |
| Johnson County Rural E M C | Residential and Farm Service(Time-of-Use) | Time-of-use | $521–$992 | 21–40y |
Price it for your own usage and system size →
What would change this
Your roof. Production is modeled for Indianapolis on a south-facing array at 20° tilt. Shading, orientation and pitch all move it, and solar resource varies within Indiana itself.
Your usage pattern. A household at home during the day self-consumes more and exports less, which shortens payback wherever export credit is poor.
Rising rates. These figures hold today's prices flat. Electricity prices have been rising, and every rise shortens payback — so treat these as a conservative bound.
State and local incentives. Not included here, and in some states they are worth more than the federal credit was. Check your state energy office before deciding.