Net metering in Indiana
- Factsheet
Net metering is no longer available to the majority of new solar owners in Indiana. However, there are other forms of solar compensation available. Visit this web page to learn more about the crediting system known as excess distributed generation, or EDG.
What is net metering?
In states with net metering, this policy ensures solar owners receive fair credit for the electricity their system produces. It allows them to count the electricity they generate against the electricity they buy from the utility.
With net metering, solar owners earn full retail rate credit on their electric bill for the electricity they produce and send to their neighbors. That means the electricity they send out receives the same value as electricity they purchase from the grid — an even swap.
Why net metering benefits everyone
Rooftop solar does more than provide direct bill savings to solar owners. It produces clean electricity close to where it’s most needed. This is good for the entire community.
More rooftop solar can lower costs for everyone by:
- reducing energy loss through transmission,
- producing electricity during times of the day when the energy is needed most,
- improving grid stability, and
- reducing the need for the electric utility to spend customer money on expensive infrastructure.
Cleaner energy from solar also promotes public health through healthier air and drinking water. And, rooftop solar produces good-paying, local jobs in one of the nation’s fastest growing employment sectors.
These are just some of the reasons why net metering is considered to be a beneficial solar policy in states that have it.
Why net metering is no longer available to new solar owners
In 2017, Indiana lawmakers passed SEA 309. (See below for more information about SEA 309.) Because of this law, net metering is no longer available for new solar owners served by Indiana’s largest electric utilities:
- AES Indiana (formally Indianapolis Power & Light Company)
- CenterPoint Energy Indiana (formally Vectren)
- Duke Energy Indiana
- I&M – Indiana Michigan Power
- NIPSCO – Northern Indiana Public Service Company
However, you may be eligible for net metering if your electricity comes from a rural electric member cooperative (REMC) or a municipal utility (depending on local policies).
Solar owners who installed their systems while net metering was still available are referred to as being “grandfathered” into net metering. After net metering ends for these customers, they will be moved to the EDG program.
- A system installed before 2018 will receive full net metering until July 1, 2047.
- A system installed between the start of 2018 and the end of net metering for new customers would receive full net metering until July 1, 2032.
Billing and credit
During some months, you may generate more electricity than you use. If this happens, you can apply the credit you earn through net metering to the following month. Think of it like rollover minutes on your phone plan. The credits will roll over from month to month indefinitely, as long as:
- you keep your account with the utility; and
- the solar panels remain in service.
This measurement system for determining net metering credits is called monthly netting or billing cycle netting.
As a solar owner, you are credited at the full retail value for your electricity. This means that you earn the same credit as what it would cost to buy that same electricity from the utility — an even 1-to-1 swap.
If you sell your solar home, the net metering agreement with your utility can be passed on to the new account holder. To ensure the transfer process goes smoothly, it’s best to retain your copy of the interconnection agreement between you and your utility for reference by the new homeowner. However, any accumulated carryover credits will generally be erased from the account.Note: This only applies to solar owners who are customers of an investor-owned utility (IOU). You may find different rules if you are a customer of a rural electric member cooperative (REMC) or a municipal utility.
Net metering for grandfathered systems in Indiana
| System capacity limit | The customer’s average annual consumption of electricity on the premises, up to 1 MW. |
| Monthly excess generation credit rate | For systems installed before December 31, 2017: – Full credit rate until July 1, 2047. For systems installed after January 1, 2018 and before no later than July 1, 2022: – Full retail credit rate until July 1, 2032. |
| Annual excess generation credit rate | Full retail credit (credit rolls over indefinitely as long as the customer remains a customer at the utility). |
| Applicable utilities | Investor Owned Utilities (IOUs). REMC member-owners and municipal electric customers may have net metering available, but that must be determined on a utility-by-utility basis. |
How to read your net metering bill
How to read your net metering bill.
How Senate Enrolled Act (SEA) 309 ended net metering
In 2017, Indiana passed a law that ended net metering. The law (SEA 309) requires the Indiana Utility Regulatory Commission (IURC) to set a new, lower credit rate for the excess electricity solar owners generate but don’t use themselves. This rate is well below the fair 1-to-1 credit net metering provides.
The new rate is calculated by taking the average wholesale cost of electricity from the prior year and adding 25%. The wholesale cost is the price the utility pays for the electricity and will vary year to year. You can read more about this replacement for net metering, called excess distributed generation (EDG) here.
Important: Solar owners who installed their system while net metering was still available retain full net metering until either 2032 or 2047. This date depends on when their system was installed (as described in more detail above).
Fighting for fair credit for all solar owners
Since launching our Indiana program in 2019, SUN has worked hard to fight for the right of solar owners to receive fair credit for all the electricity they produce.
In the spring of 2019, SUN worked with our colleagues at Citizens Action Coalition and IndianaDG to create more transparency for solar owners and solar installation companies around net metering’s phase out. The law that gutted net metering not only had a hard end date of July 1, 2022, it also allowed utilities to end it early when solar generation hit certain benchmarks. Thanks to our collective efforts, the state required more frequent net metering data reporting from utilities. These reports helped solar owners, advocates, and companies keep track of how much longer net metering was expected to be available for different utility customers hoping to install solar before net metering ended.
In May 2020, Vectren (now known as CenterPoint) became Indiana’s first investor-owned utility (IOU) to file a petition to end net metering. Centerpoint is the utility serving parts of southwest Indiana, including Evansville. The IURC approved the utility’s new proposed excess distributed generation (EDG) rate and ended net metering for potential solar owners served by CenterPoint in the spring of 2021. This was a somber moment for advocates of fair distributed solar compensation.
SUN joined with other organizations and advocates to protect your right to a fair solar credit by appealing how solar credits are measured (commonly known as the netting period) in the IURC’s order on CenterPoint’s new EDG rate. Other groups who joined the CenterPoint appeal include:
- Office of Utility Consumer Counselor (OUCC)
- Citizens Action Coalition
- Vote Solar
- Environmental Law & Policy Center
- IndianaDG
- Solarize Indiana
SUN also worked with many of the same partners to appeal IURC-approved EDG programs for Indiana’s other investor-owned utilities, including AES Indiana, NIPSCO, I&M, and Duke Energy Indiana.
In January 2022, the Indiana Court of Appeals sided with SUN and our allies in an important ruling. While the lower EDG rate is unchanged, the Court preserved the traditional monthly netting period for measuring solar credits. CenterPoint appealed this ruling to the Indiana Supreme Court. In early 2023, the Indiana Supreme Court ruled in favor of CenterPoint, and soon thereafter the appeals against similar EDG programs for other Indiana utilities were dismissed.
Unfortunately, the result of the Indiana Supreme Court ruling is that the unjust EDG with no-netting replacement for net metering is the law of the land in Indiana. However, SUN remains committed to fighting to ensure all solar owners receive fair credit for all the electricity they generate.
You can stay committed to the fight too. We encourage all solar supporters to join together to fight for their energy rights. Stay committed by joining our Solar Action Team! Advocates from around the state have joined the Solar Action Team to fight for fair solar policies! If you’d like to join our efforts, please contact us at: INTeam@solarunitedneighbors.org.
Net metering resources in Indiana
Net metering code
- The statute establishing the rules for investor owned utilities, including the full details of Indiana’s net metering policy, is found in the full text of Indiana Code 8-1-40
- The details of the law ending net metering for investor owned utilities customers can be found in the full text of SEA 309 of 2017
Net metering reports and utility interconnection information
- Indiana Utilities Regulatory Commission’s (IURC) quarterly net metering reports
- The details describing the utility reporting requirements as part of implementing SEA 309 are in the full text of IURC General Administrative Order 2019-2
- IURC net metering and interconnection timeline and documents
Net metering information by investor-owned utility
Net metering news stories
- Indiana politicians got thousands in gifts while pushing solar policy – The Indianapolis Star
- Solar power is about to become a lot more expensive for Hoosiers as net metering expires – The Indianapolis Star
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