As one of the many perks of going solar, net metering presents an appealing opportunity for Hoosier residents interested in solar panel installation for their homes. However, there is a limited window in which you’ll be able to participate in net metering programs through Indiana utility companies, so it’s worth your while to install panels sooner rather than later. Why is that? Find out all about net metering in Indiana below.
What Is Net Metering?
At peak times of day, your solar panels may produce more electricity than your home needs to function. What can you do with this excess? You could choose to store it in a backup battery system for overnight use or in case of power outages. Alternatively, you could send that excess electricity back to your utility company in a process known as net metering if it is offered in your area. In return for sending the electricity, you’ll receive credits off upcoming electric bills, making it a good use of your solar panels and an extra way to increase your potential solar savings.
Is Net Metering Available In Indiana?
Net metering is available through Indiana’s utility companies today, but that won’t be the case forever. Indiana’s state government passed SEA 309 in 2017, which ends net metering programs for new solar customers no later than July 1, 2022.
In its place, they’re instituting a new policy for Hoosier solar customers called excess distributed generation, or EDG for short. Within the boundaries of EDG, Indiana residents with solar panel systems will receive a credit below retail rate for excess electricity sent back to the grid. The new exchange rate for EDG is equal to the average marginal price of electricity per year as paid by utility companies, plus a rate of 25%.
It’s worth noting that CenterPoint has already ended its net metering policy, but other utility companies may still be continuing theirs until the official July 1 end date. The following companies have filed to end their net metering policies early, so you likely won’t be able to take advantage of net metering under their utility coverage:
- Indiana Michigan Power
- AES Indiana
- Duke Energy Indiana
With that in mind, net metering as we know it is likely not going to exist in Indiana in the immediate future. Still, EDG remains a good option for any excess electricity you may have, though storing extra energy in a battery would provide the best potential for savings. We recommend contacting your utility company if you have any questions on how they’ll handle the transition from net metering to EDG. POWERHOME SOLAR’s installation process includes targeting your ideal energy usage, so contacting our team is also a great choice!
Going Solar Is Worth Your Investment
Even without net metering policies, solar panels enable you to give back to the environment with a clean energy source while also potentially saving you thousands of dollars over time on your electric bills.4 Renewable energy has a bright future, and we’re more than happy to help you join this movement! Contact us today for a free quote on a solar system that works for your home.