Customer Renewable Generation

Customer Renewable Generation

What is Customer Generation?  

Customers who choose to install and own a renewable generation facility may, from time to time, exceed their electric requirements and generate excess energy.  When the customer’s system produces more than the customer is consuming, the excess goes out onto the utility’s electric distribution system.  This excess energy that is put back onto the system is known as excess customer generation.  IMPA will purchase this excess energy and pay the customer directly.  Customer generation facilities must have an installed capacity of less than 5,000 kW (5 MW).

Will IMPA pay for the excess electricity I generate?  

IMPA will purchase the excess energy and pay the customer directly.  The rate at which IMPA purchases this excess customer generation is updated annually.  For 2024, this rate is $0.03848 per kWh.

I am considering the installation of renewable generation.  How can I participate?  

Customers who choose to install and own a renewable generation facility should first contact your local municipal utility.  You will need to submit an application and work with your local utility's interconnection process.  Customers will also need to complete a power purchase agreement with IMPA that will document how IMPA will pay for the excess generation, as well as supply a one-line diagram and proof of ownership.


How am I compensated for my excess renewable generation?  

The renewable generation produced AND consumed by the customer will lower their electric bill from the utility.  Any excess energy produced by the customer, but not consumed, that gets pushed out onto the local utility’s system will be purchased by IMPA. IMPA will pay the customer directly for this excess generation.  Payment is made directly to the customer’s account; there is not a credit on the customer’s electric bill from the utility for this excess generation. Customers must sign a power purchase agreement (PPA) with IMPA in order to be compensated. The PPA outlines the terms in which IMPA will pay the customer for their excess generation.

How is the annual excess renewable generation rate determined?  

The excess generation rate is adjusted on an annual basis and is consistent with state law (Indiana Code 8-1-40-15). The rate is determined based upon the prior year energy market prices for Indiana (locational marginal price, or LMP), which can vary greatly year to year depending on fuel costs and other factors, combined with an additional 25%. Historical rates are listed below.

Can the annual rate decrease?  

As the rate is determined based upon prior year energy market prices, the excess generation rate can increase OR decrease. If energy market prices were high two years ago, but then decreased one year ago, the excess generation rate would be lower for the current year. Vice versa, if energy market prices were low two years ago, but then increased last year, the excess generation rate for this year would be higher. The rate will fluctuate yearly since market prices fluctuate.

When will I receive my excess renewable generation payment from IMPA?  

The customer must first complete the interconnection process with their local utility.  Next, along with a signed PPA, the customer must supply IMPA with proof of ownership in their solar panels, as well as complete a W-9 and ACH authorization form. The customer then will be set up for electronic payments from IMPA. Payments are sent electronically to the customer’s bank account on a quarterly basis using the ACH payment method.

I have additional questions or am ready to install.  

If you have additional questions regarding customer generation, or if you are ready to install a renewable generation facility, contact your local municipal utility or reach out to IMPA using the form below.

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