Customer Generation (Net Metering)

About net metering

Through a program called net metering, residential, small business and industrial customers can generate their own electricity, up to 1 megawatt, to supplement the supply they get from Vectren. When a net metering customer's renewable generator is producing more power than is being consumed, the customer essentially generates credits toward the bill. When a net metering customer uses more power than is being produced, the meter records the usage in the standard fashion. Net metering customers are charged only for the "net" power they consume from Vectren which has accumulated over a designated period or, if their renewable energy-generating systems make more electricity than is consumed, they may be credited for the excess electricity contributed to the grid over that same period.

Common customer generation systems include:

Wind

Most wind technologies can be used as stand-alone applications, connected to a utility power grid or combined with a photovoltaic system. Learn more

Solar

Solar power is commonly produced when photovoltaic (PV) systems convert sunlight into electricity. Roof panels are a popular choice. Learn more

Other options

Some other customer generation options include biomass, hydropower and hybrid systems. Learn more

Important solar installation dates & credits

As a result of Indiana Senate Enrolled Act 309 (SEA 309), signed into law in early 2017, customers interested in installing private solar (customer-owned) electric generation systems through Vectren's net metering program, such as rooftop solar panels, are reminded that Dec. 31, 2017, is the deadline by which their private generation unit must be installed to be credited at the full electric retail price for the excess power they generate over the next 30 years. As such, customers, especially businesses planning larger solar installations, are encouraged to apply for interconnection of their private solar generation to Vectren's electric system no later than mid-October, to ensure adequate time for their proposed system to meet all requirements and to be installed by year-end. The new laws for customers with existing systems as well as for those who plan to install are as follows:

  • Systems installed by Dec. 31, 2017

    Customers with systems installed by Dec. 31, 2017 will be credited at the full retail price* for excess power put back on the grid until 2047. After 2047, excess power will be credited at the market/wholesale price** plus a 25% premium.

  • Systems installed between 2018 and 2022

    Customers with systems installed between 2018 and 2022 will be credited at the full retail price for excess power put back on the grid until 2032. After 2032, excess power will be credited at the market/wholesale price plus a 25% premium.

  • Systems installed after 2022

    Customers with systems installed after 2022 will be credited at the market/wholesale rate plus a 25% premium for excess power put back on the grid.

Caps impacting credits

Under SEA 309, the net metering cap, or maximum amount of private generation on Vectren's system that will be credited at the full retail price for energy, was increased from 1% to 1.5% of Vectren's retail peak load. Therefore, the total amount of private generation that can qualify for Vectren's net metering program is now 16.5 megawatts (MW). Of the 16.5 MW:

  • 40% of the 16.5 MW must be reserved for residential customers
  • 15% of the 16.5 MW must be reserved for biomass/agricultural projects

If this 1.5% cap is reached prior to the end of 2022, all customers thereafter who install private generation and interconnect with Vectren will be credited at the market/wholesale rate plus a 25% premium for excess power put back on the grid.

What happens if I buy or sell a property with an existing system?

The policies outlined above apply to the property and power generation system - not the property owner - and will continue regardless of a transfer of ownership.

*Retail price: The full price per unit a customer would pay Vectren for a kilowatt hour of electricity. The retail price accounts for the price of the power consumed, including the generation units and fuel costs needed to generate the electricity; costs to access and maintain the entire electric grid; and various customer service fees for billing, metering and energy efficiency programs.

**Wholesale/market price: The price Vectren would pay if the power the customer generated was purchased on the wholesale market. The wholesale (or purchase in large quantity) price for power is typically 25 to 30% of the retail price.

How to get connected

There are a few key steps you must complete to begin the interconnection process, including a formal application, signing an interconnection agreement, a site drawing and an inspection. Use the project checklist and guidelines before beginning your net metering project.

Applications and agreements

Select the documents below which correspond with your project size to get started:

Generation is 10 kW or more
Application for interconnection (PDF)
Interconnection agreement (PDF)

Generation is less than 10 kW
Application for interconnection (PDF)
Interconnection agreement (PDF)

Contact us online or at 1-800-990-1930 to learn more or to get the process started. All positions and references are in accordance to Vectren's TARIFF FOR ELECTRIC SERVICE (I.U.R.C. No. E-13) and are subject to future changes.

Need more information? Contact us