Renewable Energy in Indiana: What You Need to Know

Posted on November 3rd, 2025.

Across Indiana’s farmland and industrial corridors, a quiet transformation is reshaping how energy is produced and consumed. Once defined by coal and manufacturing, the Hoosier State is gradually embracing renewable energy, balancing tradition with innovation.

This shift represents more than an environmental goal—it’s an economic opportunity. As Indiana explores wind, solar, and biomass, new industries, jobs, and investment possibilities are taking shape, signaling a redefined future for communities statewide.

Wind turbines rising across northern counties are becoming familiar landmarks, blending agriculture with energy production. They represent more than power generation—they’re symbols of progress, driving rural development and local revenue.

At the same time, solar energy is finding its place, from residential rooftops to large-scale installations that harness the state’s open landscapes. While policy and infrastructure challenges remain, these emerging technologies are laying the groundwork for a cleaner, more resilient energy system.

For residents, business owners, and policymakers alike, understanding where the state stands—and what’s needed next—can help turn incremental progress into sustainable growth. 

The Current Landscape of Indiana's Renewable Energy

Indiana’s renewable energy story is one of potential and progress unfolding side by side. Wind power has led the charge, with more than 2,300 megawatts of installed capacity positioning the state among the top 15 nationwide. Most wind farms are concentrated in northern Indiana, where consistent wind speeds make large-scale energy production viable. Yet compared to neighboring states like Iowa and Illinois—both exceeding 10,000 megawatts—Indiana still has ground to cover. This gap underscores both the strides made and the opportunities waiting to be seized.

Solar energy, meanwhile, is emerging as the next frontier. Indiana currently produces around 550 megawatts of solar capacity, a modest figure compared to nearby states that have surpassed 1,000 megawatts. Growth has been slower due to limited policy incentives and the phase-out of net metering, which once made home-based solar systems more attractive.

Still, the expansion of utility-scale solar farms and declining installation costs are helping turn the tide. For homeowners and businesses seeking long-term savings and sustainability, the solar market in Indiana holds immense promise—especially as local utilities explore community solar projects and grid modernization.

Biomass energy represents another underdeveloped yet promising sector. With Indiana’s abundance of agricultural waste and forest byproducts, the potential to generate renewable energy from organic materials is significant. Current capacity hovers near 130 megawatts, limited primarily by supply chain inefficiencies and market uncertainty. However, innovation in waste-to-energy conversion and biogas production is sparking renewed interest. Integrating biomass into Indiana’s renewable mix could support both energy independence and rural economies, turning what was once agricultural waste into valuable fuel.

Each of these energy sources—wind, solar, and biomass—plays a unique role in diversifying Indiana’s power grid. Together, they contribute to a cleaner, more balanced portfolio that reduces dependence on fossil fuels. The state’s gradual adoption reflects both its cautious policymaking and its potential for rapid expansion when the right conditions align.

Economic factors are also driving momentum. Renewable projects create local construction jobs, generate tax revenue, and attract investors focused on long-term sustainability. Rural areas, in particular, benefit from lease agreements that provide farmers with stable income. In this way, renewable energy development serves as both an environmental and economic growth strategy.

Policies Shaping Renewable Energy Development in Indiana

No discussion of renewable energy in Indiana is complete without considering the policy environment shaping its direction. Historically, Indiana’s dependence on coal limited the urgency to pursue alternatives. However, shifting market dynamics and environmental priorities are forcing policymakers to reconsider.

Unlike states with binding renewable portfolio standards (RPS), Indiana operates under a voluntary framework established in 2011, encouraging—but not mandating—utilities to source energy from renewables. While this approach laid a foundation, it lacks the enforcement and incentives that typically drive large-scale investment.

The sunset of Indiana’s net metering program in 2022 further complicated growth, particularly for residential solar. Net metering allowed homeowners to offset utility bills by selling excess solar power back to the grid, a financial incentive that made solar adoption more attainable. Its discontinuation discouraged some potential adopters, but recent discussions around updated incentive programs and community solar models offer renewed hope. The state also continues to provide a Solar Energy Property Tax Exemption, ensuring homeowners aren’t penalized for increasing their property’s value with renewable upgrades.

Momentum for policy reform is growing. Lawmakers and industry leaders are exploring measures to integrate energy storage systems, strengthen grid resilience, and expand renewable incentives. These efforts, though incremental, signal progress toward modernizing Indiana’s energy infrastructure. Proposed legislation focusing on microgrids and distributed generation could further empower local communities to generate and manage their own clean energy supply.

The role of federal incentives can’t be overlooked either. The Inflation Reduction Act and related federal programs have introduced tax credits and grants that make renewable projects more financially viable for both individuals and corporations. Indiana stands to benefit significantly if state agencies align their policies to capitalize on these federal resources.

Beyond formal legislation, local leadership plays a key part in advancing renewable adoption. Municipalities across Indiana are adopting sustainability goals, updating zoning ordinances to accommodate wind and solar projects, and exploring partnerships with developers to create shared benefits for residents. Grassroots initiatives and educational campaigns are also raising awareness of the practical and economic advantages of renewable energy.

Ultimately, the future of renewable energy in Indiana depends on aligning state-level policy with the enthusiasm already seen among local communities and investors. When public support, private enterprise, and government incentives converge, Indiana’s energy transformation can move from potential to reality.

Paving the Way for a Sustainable Future in Indiana

For Indiana to reach its full renewable energy potential, progress must extend beyond technology—it requires collaboration, investment, and cultural change. Stronger policy frameworks will play an important role in sustaining long-term growth. Adopting mandatory renewable targets could accelerate investment, while offering consistent tax credits or grants for clean energy projects would provide the stability developers need to plan ahead. 

Technological innovation is another cornerstone of Indiana’s sustainable future. Investments in grid modernization and energy storage are critical to maximize renewable integration. With weather variability affecting wind and solar production, battery systems and smart grid technology help stabilize supply and demand. Indiana’s research institutions and manufacturing base make it well-positioned to pioneer these advancements. Partnerships between universities, energy startups, and established utilities can foster breakthroughs that improve efficiency and lower costs, ensuring renewable energy remains competitive.

Community engagement may be the most powerful force in shaping Indiana’s clean energy journey. Educating residents about renewable options builds trust and participation. Local training programs focused on green jobs can equip workers with the skills needed in a growing industry. Moreover, when local governments and residents are included in decision-making processes, renewable projects gain stronger public support. 

At the heart of Indiana’s progress lies the concept of Sustainable Design Integration—the collaboration of policy, technology, and community to achieve measurable results. This integrated approach ensures that environmental responsibility and economic opportunity go hand in hand. Rather than viewing sustainability as an add-on, it becomes a guiding principle that influences how businesses invest, how communities grow, and how infrastructure evolves.

Energy independence is also an attainable goal when these efforts align. As Indiana reduces reliance on imported fossil fuels, it gains greater control over its energy future. This shift not only stabilizes costs but also enhances resilience against external supply disruptions. The result is a state that’s better equipped to meet the demands of modern industry while preserving its natural heritage.

Indiana’s clean energy movement is already underway—it simply needs consistent direction. With renewed commitment from policymakers, businesses, and citizens alike, the Hoosier State can lead the Midwest in renewable innovation, economic growth, and environmental stewardship.

Related: Empower Yourself: Financial Education for Affordable Housing

Powering Indiana’s Future

Indiana’s renewable energy transition isn’t a distant dream—it’s a reality in motion. Wind farms are generating power, solar panels are brightening rooftops, and new technologies are redefining how the state approaches sustainability. The challenge now lies in uniting efforts across sectors to build on this momentum. Each new project, partnership, and policy brings Indiana closer to a cleaner, more self-reliant future.

At REAP Development Group, we help communities, developers, and investors create sustainable energy solutions that deliver measurable results. Through our focus on Sustainable Design Integration, we connect innovation with practicality—ensuring that renewable projects enhance both local economies and environmental resilience. Whether you’re exploring solar development, wind energy expansion, or biomass opportunities, our expertise helps turn potential into progress.

Want to take the lead in Indiana's sustainability? Harness the potential within your grasp and make a meaningful impact today.

For further information, contact us at (317) 444-0512 or [email protected]. By engaging in this robust discourse and investing in sustainable strategies, you can drive impactful change.