On March 30, a voluntary rate REP or Renewable Energy Production Tariff became effective for Indianapolis Power & Light (IPL). Additionally, IPL expanded its net metering rider to include all customers with systems up to 50 kW of nameplate capacity. Previously it used the state-wide net metering rule which only applied to systems 10 kW or less.
The Indiana Utility Regulatory Commission (IURC) issued an order which requires that all contracts using Rate REP will need approval from the commission via a thirty-day filing procedure. Highlights of this REP rate include:
- Available to all customers not on Net Metering Rider 9.
- Applicable to generating capacity of 50 kW (20 kW for solar PV) to 10 MW
- All production will be metered and purchased by IPL (not just net of use)
- IPL retains all environmental attributes (e.g. RECs) to be used for compliance with an RPS or sold to the market for the credit of all customers.
- Allows for multi-year contracting of production and pricing
- Standard pricing to be adjusted periodically using a 30-day filing process and will take into account DSM incentives, tax credits and other influences so as to not create a windfall for developers.
IPL will also offer additional incentives for Small Scale Renewable Energy Projects, including:
- A $2 per watt incentive available to customers who install a small scale renewable energy project – capped at $4,000 per customer.
- Available to all but the largest IPL customers
- Net-Metered and Feed-In Tariff Customers are NOT excluded from receiving an incentive.
- Total incentives for all customers are capped at $100,000 per year – or approximately enough to incentivize about 20 systems per year.
The IPL order is only in effect for three years but it could be renewed.