Renewable Energy Property Tax Exemption

October 24, 2023


Systems that generate energy using wind, hydropower, geothermal, and solar energy heating or cooling systems are exempt from property tax.* Systems using solar power devices—including solar thermal, photovoltaic (PV), and other solar energy—are exempt from property tax only if they were installed after December 31, 2011. 

For most eligible renewable energy systems, the assessed value of the system is exempt from property tax. One exception is solar energy heating or cooling systems which are exempt from property tax the amount equal to the out-of-pocket expenditures for the components and labor associated with the system. 

The property tax exemption is allowed every year that a qualifying system functions. The property tax exemption applies to both real property and mobile homes equipped with renewable energy systems and may only be claimed by property owners. Public utilities and other electricity retailers (excluding net metered customers) may not claim a property tax exemption for wind or solar power devices.

Claiming the Property Tax Incentive

Property owners that wish to claim this deduction must fill out Form 18865 and file it with the local county auditor. Questions about this incentive should be directed to the local auditor or assessor. Click here to find contact information for local officials. The Department of Local Government Finance outlines the incentive. Properties are still eligible if ownership changes.

Solar energy heating or cooling systems include solar energy systems used for domestic hot water and space heating, including heating of swimming pools, as well as industrial pre-heating.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Indiana
Incentive Type: Property Tax Incentive
Web Site:
Administrator: Indiana Department of Local Government Finance
Start Date: 03/01/2010
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Space Heat
  • Geothermal Electric
  • Solar Thermal Process Heat
  • Solar Photovoltaics
  • Wind (All)
  • Hydroelectric
  • Geothermal Heat Pumps
  • Solar Pool Heating
  • Wind (Small)
  • Geothermal Direct-Use
Incentive Amount: Solar energy systems used for heating or cooling: out-of-pocket expenditures by the owner for the components and labor
Wind, hydroelectric, geothermal, solar thermal, solar PV, and other solar energy systems: the assessed value of the system
Maximum Incentive: None specified
Eligible System Size: None specified
Equipment Requirements: None specified


Name: Ind. Code § 6-1.1-12-26 et seq.
Date Enacted: 1975 (subsequently amended)


Name: Find Your Local Assessor
Organization: Indiana Department of Local Government Financ
Indianapolis IN 46204

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.