The Indiana Utility Regulatory Commission (IURC) put into motion rules and regulations regarding net metering in September 2004 to mandate that the state's investor-owned utilities (IOUs) offer a metering program to all residential customers and K-12 schools. Solar, wind, and small hydroelectric systems producing up to 10kW all fall under eligibility for the net-metering program under the following provisions:

A utility may limit the aggregate amount of net-metering (nameplate) capacity to 0.1% of its most recent summer peak load.

An interconnection agreement between the utility and the customer must be executed before the facility may be interconnected.

Net-metered systems must comply with Indiana's interconnection standards (170 IAC 4-4.3).

Either a single meter or a dual-meter arrangement may be used.

Utilities may not charge customers any fees for additional metering for single-phase configurations installed by the utility, for customers' requests to net meter, or for an initial net-metering facility inspection.

Net metering customers must maintain homeowners, commercial, or other insurance providing coverage of at least $100,000 against loss arising out of the use of a net metered facility. Utilities may not require additional liability insurance in excess of this limit.

Net excess generation (NEG) is credited to the customer's next monthly bill. The rules do not address the expiration of NEG for continuous customers. (If a customer elects to cease net metering, any unused credit will revert to the utility.)

Before the mandatory rules were put into place in 2004 by the IURC, Indianapolis Power & Light Company (IPL), Southern Indiana Gas and Electric Company (SIGECO), and PSI Energy voluntarily offered a net metering program to customers with green energy systems. Currently, since spring of 2010, IPL offers a net metering program for all customer classes, and a much greater maximum capacity of 50kW which is IURC approved.