Indiana Net Metering and EDG Rates: How Solar Credits Work in 2026
Which utility serves you changes the math more in Indiana than in most states — here’s why.
Indiana net metering rates at a glance (2026)
For a new system, the number that matters is the utility’s Excess Distributed Generation (EDG) credit per kWh exported. The figures below are copied from the tariff sheets themselves, with their effective dates, as read on October 7, 2026.
| Utility | Tariff document | EDG credit for exported kWh | Effective |
|---|---|---|---|
| AES Indiana | Standard Contract Rider No. 16 | 5.4325¢ per kWh (meter Channel 2) | July 27, 2026 |
| NIPSCO | Rider 689, Sheet No. 209 | $0.049685 per kWh of outflow | April 1, 2026 |
| CenterPoint, Duke Energy Indiana, Indiana Michigan Power | Each utility’s own EDG rider | Not quoted here: ask for the current rider sheet | Check the date printed on the sheet |
Both quoted credits are below what a household pays per kWh bought from the grid, because the statute builds them from a wholesale energy price (see the formula below). That is why self-consumed solar is worth more than exported solar in Indiana.
Why “net metering” mostly doesn’t apply to new systems anymore
A 2017 Indiana law (Senate Enrolled Act 309, now Indiana Code chapter 8-1-40) set a phase-out of traditional net metering. Under the statute, an investor-owned utility’s net metering tariff closed to new participants on the earlier of two dates: when net metering capacity reached 1.5% of the utility’s most recent summer peak load, or July 1, 2022 (the statutory text is reproduced in the IURC’s technical conference handout on IC 8-1-40). New solar systems are instead credited under an Excess Distributed Generation (EDG) rider.
How the EDG credit is calculated
The statute sets the formula: the EDG rate equals the average marginal price of electricity paid by the utility during the most recent calendar year, multiplied by 1.25 (IC 8-1-40-17). Because it is built from a wholesale energy price rather than from the full retail rate, an exported kilowatt-hour is credited at less than a kilowatt-hour you buy. Each utility files its own rider, and the rate moves every year.
AES Indiana. The Rider 16 tariff sheet effective July 27, 2026 sets the Excess DG rate at 5.4325 cents per kWh and says the company updates it annually by a compliance filing on or before March 1. The IURC approved AES Indiana’s first EDG rate in its January 2022 order in Cause No. 45504. Older figures of about 3.9 cents come from the earlier sheet, effective May 9, 2024, which listed 3.935 cents. When we checked on October 5, 2026, AES Indiana’s own Solar FAQs page still quoted 3.935 cents, so the two figures can both appear on aesindiana.com at the same time; our article on how the AES Indiana EDG credit rate is set walks through why the tariff sheet is the one to rely on.
CenterPoint, Duke Energy Indiana and Indiana Michigan Power each publish their own EDG rider. We have not quoted their current rates here; ask for the rider sheet and its effective date before relying on any figure.
NIPSCO works differently
NIPSCO (Northern Indiana Public Service Company) is often described as an exception because it used to run a feed-in tariff. That is out of date for a new system: NIPSCO’s feed-in tariff page states that all programs are currently closed to new applicants, and its net metering page marks net metering closed to new applications.
A new NIPSCO system is credited under Rider 689, Excess Distributed Generation. The rider measures inflow and outflow on an instantaneous basis and credits all outflow at a Marginal DG Price, which the billing sheet effective April 1, 2026 sets at $0.049685 per kWh, updated at least annually. In other words, NIPSCO now sits in the same EDG framework as the other investor-owned utilities, not above it.
Grandfathering for existing systems
- Systems installed before January 1, 2018 and on net metering at the end of 2017: served under the net metering tariff until July 1, 2047, or until the system is removed or replaced, whichever comes first (IC 8-1-40-14).
- Systems installed after December 31, 2017 and before the utility’s net metering tariff closed: served under it until July 1, 2032, or until the system is removed or replaced, whichever comes first (IC 8-1-40-13).
- Systems installed new today: credited under the utility’s EDG rider, not net metering. NIPSCO’s feed-in tariff is closed to new applicants.
What happens to unused EDG credits
Indiana Code 8-1-40-18 says the utility compensates excess distributed generation through a credit on the customer’s monthly bill, and that any excess credit is carried forward and applied against future charges for as long as the customer receives retail electric service from that utility at the premises (statute text as reproduced in the IURC handout). NIPSCO’s Rider 689 spells out the other side: when a customer stops service at the premises, any unused DG Billing Credit Balance is forfeited. In practice, credits do not follow you to a new address, and there is no cash-out.
Who sets these rates: the IURC
EDG riders are tariffs on file with the Indiana Utility Regulatory Commission (IURC). The commission approves the rate a utility requests if it equals the statutory product of the utility’s average marginal price of electricity in the most recent calendar year multiplied by 1.25 (IC 8-1-40-17). AES Indiana’s rider states that it is updated annually by a compliance filing on or before March 1, and NIPSCO’s defines its Marginal DG Price from the real-time price it paid in the MISO market. Our articles on how AES Indiana’s Rider 16 sets the EDG rate and how NIPSCO bills inflow and outflow go through each document.
How to check the current rate yourself
EDG numbers circulate in installer proposals, comparison sites and utility FAQ pages, and they are not always the same number. The document that sets the credit is the utility’s rider sheet on file with the Indiana Utility Regulatory Commission, so a quick check takes three steps:
- Find the rider, not a summary. AES Indiana posts Rider 16 on its contract riders page; NIPSCO’s figure sits in the Marginal DG Price section of Rider 689.
- Read the “Effective” date printed on the sheet. The AES sheet read on October 5, 2026 is marked effective July 27, 2026; the NIPSCO price sheet (Sheet No. 209) is marked effective April 1, 2026. A figure without an effective date cannot be checked.
- Ask which figure the proposal used. If a savings estimate credits exports at a different rate, ask the provider to name the rider sheet and date behind it. Because AES must refile by March 1 each year and NIPSCO updates its price at least annually, a figure from a previous year may simply be out of date rather than wrong.
The credit rate matters most for the share of production you export. Our page on monitoring a solar system in its first year explains how to see that share once a system is running, and the questions to ask an Indiana solar installer include how the export assumption was built.
What to ask your utility or provider
- Which utility serves my address, and is it NIPSCO or one of the other four?
- What is the current EDG rate, and which rider sheet and effective date does that figure come from?
- How is my system sized relative to my usage, given that exported power is credited at a lower rate than what I pay?
- If I’m buying a home with an existing system, which program (grandfathered net metering vs. EDG) is it enrolled in?
Frequently asked questions
Does Indiana still have net metering?
Not for new systems at the investor-owned utilities. Under IC 8-1-40 their net metering tariffs closed to new participants, and new systems are credited under an EDG rider instead. Systems already on net metering keep it until the dates in the grandfathering rules above.
What is the Indiana net metering rate in 2026?
For a new system it is the EDG rate of your utility. On the sheets read on October 7, 2026, AES Indiana’s Rider 16 sets 5.4325¢ per kWh (effective July 27, 2026) and NIPSCO’s Rider 689 sets $0.049685 per kWh (effective April 1, 2026). Other utilities publish their own figures.
Is Indiana’s EDG credit the same as the retail rate?
No. It is built from the utility’s average marginal energy price multiplied by 1.25, which is lower than the full price you pay per kWh. Sizing a system to your own consumption matters more in Indiana than in a full-retail state; our page on whether solar is worth it in Indiana works through the consequences.
Can I still get the federal solar tax credit in Indiana?
Not for a homeowner-owned system placed in service after December 31, 2025, according to the IRS. See our Indiana solar incentives page for what remains.
Does the EDG rate change every year?
Yes. The formula uses the most recent calendar year’s prices, AES Indiana refiles by March 1, and NIPSCO updates its price at least annually. Always ask a provider which rider sheet and effective date its savings estimate uses; our page on solar panel cost in Indiana explains why that assumption moves the payback figure.
Updated October 7, 2026: rate table, credit-carryover and IURC sections and FAQ added. AES Indiana Rider 16, NIPSCO Rider 689, the IURC handout reproducing IC 8-1-40 and the IRS credit page were re-read on October 7, 2026. Previously read on October 5, 2026: Indiana Code chapter 8-1-40 as reproduced in the IURC handout; AES Indiana Rider 16 (effective July 27, 2026) and IURC order in Cause No. 45504; NIPSCO Rider 689 (billing sheet effective April 1, 2026) NIPSCO’s program pages; and the AES Indiana Solar FAQs and contract riders pages. Rates change year to year — confirm current figures directly with your utility or provider before deciding.
See What Solar Costs at Your Address
Figures on this page are general. The only way to know what solar costs on your roof in Indiana is a quote based on your address, your roof and your actual power use.
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