Net Metering (Utility Option)

Summary

Indiana law allows the state's investor-owned utilities (IOUs) to offer net metering to customers with renewable-energy systems. Three Indiana IOUs currently offer net-metering contract riders: Indianapolis Power & Light Company (IPL), Southern Indiana Gas and Electric Company (SIGECO) and PSI Energy. Each of these utilities limits system capacity to 10 kW and caps the total capacity of all net-metered systems. PSI Energy has imposed a system-wide cap of 10 MW; SIGECO has a system-wide cap of 1.2 MW, and IPL's system-wide cap is 1 MW. In all cases, for generators producing less than 1,000 kWh per month, net excess generation (NEG) is granted to the utility. For systems producing more than 1,000 kWh per month, generators may request that the utility purchase NEG, in which case two meters would be installed. So far, this program has been used primarily by owners of small wind turbines. The Indiana Utility Regulatory Commission (IURC) issued mandatory net-metering rules in September 2004, requiring the state's investor-owned utilities (IOUs) to offer net metering to residential customers and K-12 schools. These new rules apply to solar, wind and hydro projects with a maximum capacity of 10 kilowatts. It is unclear if Indiana's mandatory net-metering policy will affect the optional policies implemented by some of the state's IOUs.