Net Metering (Indiana)

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Last modified on February 12, 2015.

Rules Regulations Policies Program

Place Indiana

Name Net Metering
Incentive Type Net Metering
Applicable Sector Agricultural, Commercial, Fed. Government, Industrial, Institutional, Local Government, Multi-Family Residential, Nonprofit, Residential, Schools, State Government, Tribal Government
Eligible Technologies Biomass, Fuel Cells, Fuel Cells using Renewable Fuels, Hydroelectric, Hydrogen, Photovoltaics, Small Hydroelectric, Solar Thermal Electric, Solar Thermal Process Heat, Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Aggregate Capacity Limit 1% of utility's most recent peak summer load
Applicable Utilities Investor-owned utilities

Meter Aggregation Not addressed
Net Excess Generation Credited to customer's next bill at retail rate; carries over indefinitely

REC Ownership Not addressed

System Capacity Limit 10 kW

Date added to DSIRE 2005-02-17
Last DSIRE Review 2013-07-01
Last Substantive Modification
to Summary by DSIRE

References DSIRE[1]


The Indiana Utility Regulatory Commission (IURC) adopted rules for net metering in September 2004, requiring the state's investor-owned utilities (IOUs) to offer net metering to all electric customers. The rules, which apply to renewable energy resource projects [defined by IC 8-1-37-4(a)(1) - (8)] with a maximum capacity of 1 megawatt (MW), include the following provisions:

  • A utility may limit the aggregate amount of net-metering (nameplate) capacity to 1% of its most recent summer peak load.
  • At least 40% of a utility's bet metering capacity must be residential customers.
  • An interconnection agreement between the utility and the customer must be executed before the facility may be interconnected.
  • Net-metered systems must comply with Indiana's interconnection standards (170 IAC 4-4.3).
  • Either a single meter or a dual-meter arrangement may be used.
  • Utilities may not charge customers any fees for additional metering for single-phase configurations installed by the utility, for customers' requests to net meter, or for an initial net-metering facility inspection.
  • Net metering customers must maintain homeowners, commercial, or other insurance providing coverage of at least $100,000 against loss arising out of the use of a net metered facility. Utilities may not require additional liability insurance in excess of this limit.
  • Net excess generation (NEG) is credited to the customer's next monthly bill. The rules do not address the expiration of NEG for continuous customers. (If a customer elects to cease net metering, any unused credit will revert to the utility.)
  • Any disputes between customers and utilities will be settled according to the IURC's consumer-complaint rules.

Before the IURC issued mandatory net-metering rules in September 2004, three of the state's IOUs -- Indianapolis Power and Light Company (IPL), Southern Indiana Gas and Electric Company (SIGECO), and PSI Energy -- voluntarily offered net metering to customers with renewable-energy systems. IOUs may choose to offer larger net metering capacity limits. For example, as of spring 2010 Indianapolis Power and Light Company voluntarily raised its net metering program capacity limits to 50 kW and made net metering available to all customer classes, as part of its demand side management programs approved by the IURC (Cause number 43623). In May 2011, the IURC approved final rules (effective July 13, 2011) increasing the maximum net metering capacity from 10 kW to 1 MW, and increasing the aggregate capacity limit from .1% to 1% of the most recent summer peak load. All electric customers are now eligible to net meter. In addition, the rulemaking defined "name plate capacity" for inverter-based net metering facilities to be "the aggregate output rating of all inverters in the facility, measured in kW." Government entities are now exempt from the indemnification provision. Lastly, the rulemaking allows all "renewable energy resources" as defined by IC 8-1-37-4(a)(1) through IC 8-1-37-4(a)(8)*.

In March 2012, the IURC issued a net metering report summarizing the net metering customers through 2011.

*In the original version of the final rules, there was a typographical error related to eligible resources. RM#09-10 LSA#10-662(ac) corrects the error, clarifying the list of eligible technologies as IC 8-1-37-4(a)(1) through IC 8-1-37-4(a)(8).

Incentive Contact

Contact Name Brad Borum
Department Indiana Utility Regulatory Commission
Division Electricity Division
Address 101 West Washington Street, Suite 1500E

Place Indianapolis, Indiana
Zip/Postal Code 46204
Phone (317) 232-2304

Fax (317) 232-6758

Authorities (Please contact the if there are any file problems.)

Authority 1: 170 IAC 4-4.2
Date Effective 2004-10-22
Date Enacted 2004-09-08

Authority 2: RM #09-10 LSA #10-662
Date Effective 2011-05-11
Date Enacted 2011-07-13

Authority 3: RM #09-10 LSA#10-662(ac)

Date Enacted 2011-07-27

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"