Net Metering in Indiana

Net Metering

Last Updated November 24, 2015

Program Overview

    • Implementing Sector:


    • Category:

      Regulatory Policy

    • State:


    • Incentive Type:

      Net Metering

    • Start Date:


    • Utilities:

      Indianapolis Power & Light Co, Indiana Michigan Power Co, Northern Indiana Pub Serv Co, Southern Indiana Gas & Elec Co

    • Eligible Renewable/Other Technologies:

      Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Hydrogen, Fuel Cells using Non-Renewable Fuels, Wind (Small), Hydroelectric (Small), Fuel Cells using Renewable Fuels

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Multifamily Residential, 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 as a kWh credit (i.e., at retail rate); carries over indefinitely

    • Ownership of Renewable Energy Credits:

      Not addressed

    • Meter Aggregation:

      Not addressed


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.

Eligible Resources and System Size

Facilities with a maximum capacity of 1 megawatt (MW) are eligible for net metering. Eligible net metering energy resources include wind, solar, hydro, fuel cells, hydrogen, organic waste biomass and dedicated crops powered generation.

Aggregate Cap

A utility may limit the aggregate amount of net-metering nameplate capacity to 1% of its most recent summer peak load.  Nameplate capacity for inverter-based net metering facilities is defined as “the aggregate output rating of all inverters in the facility, measured in kW.” At least 40% of a utility’s net metering capacity must be residential customers.

IOUs may choose to offer larger net metering capacity limits.

Net Excess Generation (NEG)

NEG during a billing period is credited to the customer’s next monthly bill in the form of a kilowatt-hour (kWh) credit at the retail rate. NEG credits rollover indefinitely. If a customer elects to cease net metering, any unused credit will revert to the utility.


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.


The IURC’s 2014 net metering report is available here.


    • Date Enacted:

    • Effective Date:

    • Date Enacted:

    • Effective Date:


  • Organization:

    Indiana Utility Regulatory Commission

  • Address:

    101 West Washington Street, Suite 1500E
    Indianapolis, IN 46204

  • Phone:

    (317) 232-2304

  • E-Mail:



    • 11/24/2015 by Ben Inskeep

      Annual review; no changes to policy; edited entry for clarity

  • 05/13/2015 by Heather Calderwood

    No changes to program policy.

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