From Net Metering to Distributed Generation: Key Definitions and Terms
In 2017, the Indiana General Assembly passed Senate Enrolled Act 309, which phased-out net metering in Indiana and replaced it with a mechanism that credits owners of distributed generation, such as solar panels and windmills less than 1 megawatt (MW), at a rate more closely aligned to what electric utilities pay for electricity at the wholesale market.
Customers with existing renewable power generating systems by December 31, 2017, receive:
- Retail credit (about 12 cents for residential customers per kilowatt hour (kWh)) for power they generate and consume until 2047.
- Retail credit for the excess power put on the grid until 2047.
- If property is sold, new owner continues to net meter for the remaining grandfather period.
- After 2047, retail credit for power they generate and consume.
- After 2047, market/wholesale credit (currently about 4 cents per Kwh) plus 25% premium for excess power.
Customers who install distributed generation systems, such as solar panels or windmills under 1MW, before 2022 (or when increased 1.5% of utility’s most recent summer peak load cap is reached, whichever is earlier) receive:
- Retail credit for power they generate and consume until 2032.
- Retail credit for excess power put on grid until 2032.
- If property is sold, new owner continues to net meter for remaining grandfathering period.
- After 2032, retail credit for power they generate and consume.
- After 2032, market/wholesale credit plus 25% premium for excess power.
Customers who install after 2022 receive:
- Retail credit for power they generate and consume.
- Market/wholesale credit plus 25% premium for excess power.
- Permits utility to petition IURC to request charges to cover grid and energy delivery costs with burden on utility to demonstrate why change is needed; ultimate decision rests with IURC.
- Establishes consumer right to know and safety provisions; authorizes Attorney General to enforce these protections.