Indiana ranked worst state for rooftop solar. Here's why fewer Hoosiers have it

Hoosier homeowners face an uphill battle when considering investing in rooftop solar. Indiana ranks as the worst state in the country for going solar, according to a new report.

ConsumerAffairs recently released a comprehensive look at which states are best for rooftop solar installations. It found little economic incentives for Hoosiers despite a relatively good potential to capture solar.

“Indiana has the highest rooftop solar installation costs, and its lack of statewide rebates to help offset those costs makes the economics of going solar less attractive in Indiana than any other state,” the report says.

Indiana scored 15.88 out of a total 100 points in the study that used electricity costs, installation costs, potential solar energy, existing solar capacity and solar polices to grade each state. The full study can be found on the ConsumerAffairs website.

Loss of net metering dubbed ‘the day Indiana rooftop solar died’

One of the main reasons Indiana ranked so low is the loss of a program called net metering.

Net metering was used to encourage homeowners to install their own solar by issuing credits for excess energy created from the system.

“One particularly thorny solar policy, net metering, is being phased out in some states under pressure from utility companies that don’t want to pay homeowners for the excess electricity they generate on their rooftops,” the study says.

Loss of solar incentives: Solar power is about to become a lot more expensive for Hoosiers as net metering expires

Indiana’s legislators began phasing out this incentive in 2017, and the benefits of net metering for new solar installations ultimately expired in 2022.

Net metering’s incentives were replaced with a system that pays homeowners much less for that excess power they generate from the rooftop or residential solar installation. The erosion of these economic incentives by Indiana’s lawmakers has resulted in a reduction in rooftop solar installations.

Still want solar power? Federal options exist for Hoosiers

Installing residential and rooftop solar in Indiana is still a climate-friendly solution to reliance on fossil fuels.

While the state has diminished the economic benefits for Hoosiers, there are federal programs that can reduce upfront costs.

The Residential Clean Energy Tax Credit can offset 30% of the cost of new solar installations built before 2032. The IRS has more information about how to qualify on its website.

The U.S. EPA kicked off its $7 billion Solar for All program last summer, which offers grants for states, territories, Tribal governments, municipalities and nonprofits that would enable “millions of low-income households to access affordable, resilient, and clean solar energy.”

Local residents can reach out to these entities about applying for this money.

Karl Schneider is an IndyStar environment reporter. You can reach him at karl.schneider@indystar.com. Follow him on Twitter @karlstartswithk

IndyStar's environmental reporting project is made possible through the generous support of the nonprofit Nina Mason Pulliam Charitable Trust.

This article originally appeared on Indianapolis Star: Indiana rooftop solar lacks economic incentives, study says