Indiana has been talking about electric bills a lot this year. On April 6, Gov. Mike Braun held a ceremonial signing for House Enrolled Act 1002, a major utility law passed during the 2026 legislative session. He had signed it into law on February 26.
If you’re an Indiana homeowner, you’ve probably seen headlines about “utility affordability.” Here’s a plain-English look at what the law does, what it doesn’t do, and where solar fits in.
What HEA 1002 Does
HEA 1002 mostly changes how Indiana’s investor-owned electric utilities ask for rate increases going forward:
- Multi-year rate plans. Instead of one-off rate cases, utilities will move to multi-year rate plans. The first required filings come in 2029, with new plans taking effect in 2030.
- Performance incentives. Those plans must include performance measures tied to affordability and reliability, including how quickly utilities restore service after outages.
- Summer shutoff protections. The law adds new protections against disconnections during heat emergencies.
- Help for low-income customers. Eligible low-income customers will be enrolled in levelized (“budget”) billing plans, and utilities must offer assistance programs.
- More transparency. Utilities must file regular reports on disconnections and past-due accounts with the state’s consumer advocate.
What HEA 1002 Doesn’t Do
This is the part the headlines can blur. The law doesn’t directly lower rates, and it doesn’t freeze them. It might lead to lower rates over time, but it doesn’t mandate them. Even supporters cautioned against overpromising what it will deliver for most ratepayers in the short term.
Rate cases already in progress continue under the current process. For example, AES Indiana’s request to raise rates, which we wrote about last year in AES Indiana’s Multi-Phase Rate Hike, is still pending before the Indiana Utility Regulatory Commission (IURC).
Did HEA 1002 Change Anything for Solar?
No. The law doesn’t change how Indiana’s investor-owned utilities credit rooftop solar. That system, called Excess Distributed Generation (EDG), has been in place for new solar customers of the five investor-owned utilities since net metering ended under a 2017 state law.
Here’s how EDG works in plain terms:
- Solar you use at home offsets electricity at the full retail rate. When your panels are powering your home, you’re simply not buying that electricity.
- Excess solar you send to the grid earns a lower credit. EDG credits are tied to the utility’s wholesale costs (about 1.25 times its average marginal price), which works out to well below what you pay for electricity.
- Credits are measured as power flows out. Exported energy is counted moment to moment, not netted against your use over the whole month.
Many homeowners who installed solar before EDG took effect are still on net metering for a set period, generally through 2032 or 2047 depending on when their system went in.
What That Means If You’re Considering Solar in Indiana
Under EDG, the smartest solar systems are designed around using as much of your own solar power as possible:
- Size to your actual usage, not bigger. Oversizing means exporting more power at the lower credit rate. Our guide to how many solar panels you need explains the basics.
- Shift some usage to daytime. Running the dishwasher, laundry or EV charging while the sun is up means more of your solar goes straight to work.
- Consider a battery. A home battery stores midday solar for evening use instead of exporting it, and it keeps your essentials running during outages. Learn more about the Franklin WH home battery, Enphase and Tesla Powerwall.
The bottom line: HEA 1002 may change how future rate increases are decided, but it doesn’t stop them, and it doesn’t change the math on solar. Every kilowatt-hour your panels produce and your home uses is one you don’t buy from the utility, whatever the rates turn out to be.
Thinking About Solar in Central Indiana?
Icon Solar has helped homeowners across Ohio, Kentucky and Indiana go solar since 2009, including throughout the Indianapolis area. We’ll design your system around your actual usage and how your utility credits solar, so the numbers you see are realistic.
Learn more about solar in Indianapolis, Carmel, Fishers and Noblesville, explore solar financing options, or request your free quote. You can also call us at (866) 396-4266.
Frequently Asked Questions
What is Indiana HEA 1002?
House Enrolled Act 1002 is a 2026 Indiana law that moves investor-owned electric utilities to multi-year rate plans with performance incentives for affordability and reliability. It also adds summer disconnection protections, levelized billing and assistance for eligible low-income customers, and new reporting requirements.
Will HEA 1002 lower my electric bill?
Not directly or immediately. The law changes how future rate increases are set and adds accountability measures, but it doesn’t mandate lower rates. The first multi-year rate plans are filed in 2029 and take effect in 2030.
Does HEA 1002 change net metering or solar credits in Indiana?
No. Rooftop solar customers of Indiana’s investor-owned utilities remain under the Excess Distributed Generation (EDG) program, which credits excess solar at a rate tied to the utility’s wholesale costs.
How does Excess Distributed Generation (EDG) work in Indiana?
Solar electricity you use at home offsets the full retail rate. Excess electricity sent to the grid is measured as it flows out and credited at about 1.25 times the utility’s average marginal price, which is well below retail.
Is solar still worth it in Indiana?
For many homes, yes, especially systems sized to match household usage so most solar power is used on-site. Adding a battery can increase how much of your solar you use yourself and provides backup power.
