The dispute and how it ended
A southern Indiana utility proposed moving from monthly net metering to instantaneous netting, and the Indiana Utility Regulatory Commission approved the request in April 2021.
Consumer and solar advocates argued the plan went beyond what the 2017 law called for. The Court of Appeals initially sided with them; the Indiana Supreme Court then disagreed and upheld the method.
The reasoning was narrow. The court held that when the General Assembly moved to the excess distributed generation scheme it did not direct utilities on how often excess generation must be measured, so the Commission acted within its authority.
The result is that instantaneous netting is permitted in Indiana. What matters for your project is not the litigation history but which method your own utility applies today.
What it does to a household bill
Under instantaneous netting the meter measures inflow and outflow moment by moment. Any generation above your demand at that instant is an export credited at the Excess Distributed Generation rate.
The Excess Distributed Generation rate is the prior year average wholesale cost of electricity plus 25 percent, which has run roughly 70 to 80 percent below the retail rate.
So a sunny weekday afternoon with the house empty produces a great deal of exported electricity earning very little, while the same household pays full retail that evening.
That pattern is the design problem. The answer is not to abandon solar but to size and operate the system so that far more of its output lands inside your own consumption.
The levers that actually help
Size to your daytime load rather than your annual total. Ask what percentage of your annual usage the design covers and, more importantly, what share of generation the model expects you to consume directly.
Shift flexible loads into daylight. Dishwasher, laundry, pool pump and electric vehicle charging all move easily, and each moved kilowatt hour goes from the Excess Distributed Generation rate to the full retail rate.
Pre-cool the house on hot afternoons so air conditioning runs while the sun is up and less after sunset. In a southern Indiana summer that is the largest free lever available.
Consider storage seriously. Under instantaneous netting with a low export rate, a battery converting exports into evening self-consumption does real arbitrage, and the gap it monetises is unusually wide here.
Building the number from what Indiana still offers
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase in Evansville receives no federal tax credit, and Indiana has no state income tax credit for solar.
Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.
What exists is the 7 percent sales tax exemption, the property tax exemption on added value, full retail value for what you consume as it is generated, and the Excess Distributed Generation rate for what you export.
Confirm your netting method and current Excess Distributed Generation rate with your utility, then ask for the projection rebuilt on those two facts.