Indiana Senate Approves Net Metering Requirement for Electric Utilities

Errington says measure will encourage investments in renewable energy production

INDIANAPOLIS, IN - The State Senate unanimously approved legislation today that will require private electric utilities to buy back surplus electricity from customers who produce energy through their own small-scale systems. Under Senate Bill 300, utilities would be required to offer net metering to certain customers that generate electricity from renewable energy resources. State Senator Sue Errington (D-Muncie), an author of the bill, says the measure will encourage consumers to become renewable energy producers and is a policy that will help Indiana move into the new economy.

“We want to offer an incentive to electricity consumers who become producers of solar, wind and other forms of renewable energy,” Errington said. “Homeowners, schools, and municipalities could all benefit from receiving a credit on their electricity bills from the alternative power that they produce.”

Net metering allows for the measurement of both the usage and production of electricity. Small-scale renewable energy production has grown in popularity through the use of modern wind mills, high efficiency solar panels, and other mechanisms. The practice can reduce the demand from power plants and increase the amount of alternative energy available on the utility grid.

“Over the last year or so, we’ve begun to understand that what is good for the environment is good for jobs,” Errington said. “This is one piece of a number of policies that Indiana can move ahead on to improve our standing as a state in terms of creating the right conditions for good paying jobs in the new economy.”

Senate Bill 300 expands existing rules by the Indiana Utility Regulation Commission allowing net metering for residential customers and schools that produce 10 kilowatts or less. Under the legislation, new metering would be offered to any customer in good standing that owns and operates a net metering facility with a capacity less than or equal to 100 kilowatts. Private utility companies would be allowed but not required to offer net metering to other customers.

The bill will now move to the House of Representatives for further consideration.

For more information on Senator Errington, her legislative agenda or other State Senate business call    1-800-382-9467 or visit www.senatedemocrats.in.gov.

Source: Senate Democrat News Press Release