Indiana residential solar energy incentives

Renewable energy property tax exemption
- Renewable energy systems that generate power using solar, wind, hydropower or geothermal technologies have a 100% property tax exemption.
- This exemption is allowed each year the system is properly functioning.
Residential energy efficiency loan program - South Central Indiana REMC
- This loan program provided by South Central Indiana REMC offers a 6% interest loan to residential customers interested in making energy efficiency improvements to their homes.
- Loan amounts vary between $2,000 to $10,000
- Systems and equipment must meet minimum requirements to qualify.
- Customers who wish to apply for a loan must submit an Energy Efficient Loan application form.
  - There is a $25 processing fee for the application.
Utility rebate programs
- Indiana has several utility rebate programs provided by municipal cities and utilities.
- The majority of the rebate programs are for water heaters and heat pumps
- Details on all the different programs are available online.
Residential renewable energy tax credit
- This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
- Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
- The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
  - This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.
Residential energy conservation subsidy exclusion
- This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
- The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
- Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.
Energy-efficient mortgages
- This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.