State incentives and net metering
Indiana distributed generation (successor to retail net metering)
The DSIRE net metering record for investor-owned utilities lists a 1 MW system capacity limit for net metering, and net excess generation is credited under the successor distributed generation structure. Size a new system to daytime use first, because surplus earns far less than retail.
IndianaDistributed generationAverage marginal priceGrandfathering
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Full record for this entry
| Program name | Indiana distributed generation (successor to retail net metering) |
|---|---|
| State | Indiana |
| Program type | Distributed generation credit |
| Administering body | Indiana Utility Regulatory Commission and your investor-owned utility |
| Status as the source states it | Retail-rate net metering was phased out for new systems; the successor structure applies to investor-owned utilities, with older contracts grandfathered, per the DSIRE summary for Indiana. |
| What it covers | The DSIRE net metering record for investor-owned utilities lists a 1 MW system capacity limit for net metering, and net excess generation is credited under the successor distributed generation structure. Size a new system to daytime use first, because surplus earns far less than retail. |
| Incentive amount note | Excess distributed generation is credited at 1.25 times the average marginal price of electricity paid by the electricity supplier during the most recent calendar year, under Indiana Code 8-1-40-17. Marginal price is the hourly market price as determined by the regional transmission organization the supplier belongs to, per Indiana Code 8-1-40-6. That basis, not a fixed cents figure, is the amount recorded here. |
| Tags | Indiana, Distributed generation, Average marginal price, Grandfathering |
| Official source | DSIRE, Indiana Net Metering program detail |
| Checked date | 2026-10-29 |
Source note: DSIRE summary for this state, as recorded on this site from DSIRE on 2026-10-04 and re-checked for this directory on 2026-10-22 against official state, utility and program sources. Profile sections were added on 2026-10-26 from the official source above and the official pages cited in the text; every figure is attributed where it appears. Program terms change. Confirm the current status, eligibility and value for your address in the source above and in your utility tariff before you sign anything.
About this program: how it works
How Senate Bill 309 replaced retail net metering
The Indiana Utility Regulatory Commission adopted net metering rules in September 2004, requiring investor owned utilities to offer net metering to all customers, per DSIRE. Senate Bill 309, signed in May 2017 as Senate Enrolled Act 309, changed that system, including an eventual phaseout of retail rate net metering, per DSIRE. Each investor owned utility then went through a commission process to establish revised rules, per DSIRE.
As enacted, the tariff was to remain available until the earlier of aggregate net metering nameplate capacity reaching at least 1.5 percent of the supplier most recent summer peak load, or July 1, 2022, per the bill summary reproduced in IURC filings. After closure, new systems moved to the successor excess distributed generation structure, not a one for one retail offset.
How the excess distributed generation credit is calculated
Indiana Code 8-1-40-17 states the formula: the commission shall approve a rate if it finds the rate was accurately calculated and equals the average marginal price of electricity paid by the electricity supplier during the most recent calendar year, multiplied by 1.25. This entry records the same basis, and records that marginal price is the hourly market price as determined by the regional transmission organization the supplier belongs to, per Indiana Code 8-1-40-6.
Each supplier petitions under section 16, the commission reviews after notice and a public hearing, and the approved rate is published in that utility own rider, per the Duke Energy Indiana filing in IURC Cause 45508. That filing states compensation is a credit on the monthly bill, with excess credit carried forward against future charges while the customer receives service at the premises, per Indiana Code 8-1-40-18. DSIRE states production and consumption are netted instantaneously, excess is credited to the next monthly bill at 1.25 times the locational marginal price for the applicable utility, and credits roll over indefinitely, reverting to the utility if the customer ceases net metering. The cents value therefore differs by utility and year, and no fixed figure is recorded here.
- Size limit: facilities with a maximum capacity of 1 megawatt are eligible, per DSIRE.
- Resources listed by DSIRE include wind, solar, hydro, fuel cells, hydrogen, organic waste biomass and dedicated crops powered generation.
- Interconnection: an agreement must be executed first, and systems must comply with 170 IAC 4-4.3, per DSIRE.
Grandfathering for pre-2018 and pre-2023 systems
Two periods apply, and both end early if the facility is removed or replaced. Testimony in IURC Cause 45506 states that Indiana Code 8-1-40-14 allows customers who installed before January 1, 2018 and took service on December 31, 2017 to continue under net metering until July 1, 2047, including a successor customer at the premises. It states that section 8-1-40-13 allows customers who installed after December 31, 2017 but before July 1, 2022 to continue until July 1, 2032.
A grandfathered system thus keeps retail net metering until its end date. A new system does not, so its value comes mainly from power used on site when generated, with only the excess credited under the 1.25 formula.
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