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Incentives/Policies for Renewables & Efficiency

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Net Metering   

Last DSIRE Review: 08/26/2014
Program Overview:
State: Indiana
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Fuel Cells, Hydrogen, Small Hydroelectric, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional
Applicable Utilities:Investor-owned utilities
System Capacity Limit:1 MW
Aggregate Capacity Limit:1% of utility's most recent peak summer load
Net Excess Generation:Credited to customer's next bill at retail rate; carries over indefinitely
REC Ownership:Not addressed
Meter Aggregation:Not addressed
Authority 1:
Date Enacted:
Date Effective:
170 IAC 4-4.2
Authority 2:
Date Enacted:
Date Effective:
RM #09-10 LSA #10-662
Authority 3:
Date Enacted:
RM #09-10 LSA#10-662(ac)
Eligibility and Availability 
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 net 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.

Program Administrator Types

Before the IURC issued mandatory net-metering rules in September 2004, three of the state's IOUs -- Indianapolis Power & 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.

Meter Aggregation Provisions 
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 0.1% to 1.0% 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).

  Brad Borum
Indiana Utility Regulatory Commission
Electricity Division
101 West Washington Street, Suite 1500E
Indianapolis, IN 46204
Phone: (317) 232-2304
Fax: (317) 232-6758
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

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