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SB 240

Surplus interconnection service.

2026 Regular Session Introduced by Alex Burton and 10 co-sponsors

SB 240 permits Indiana homeowners and businesses with renewable energy systems to sell excess electricity back to the grid under new state interconnection standards.

Signed by the Governor
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Bill Summary · SB 240

Legislative bill overview

SB 240 establishes a regulatory framework for "surplus interconnection service" in Indiana, allowing distributed energy resources (such as rooftop solar or small wind systems) to export excess power to the grid. The bill passed the Senate with overwhelming support and has advanced through House committee with a recommendation to pass.

Why is this important

This legislation directly affects homeowners and small businesses with renewable energy systems by clarifying the rules under which they can sell excess electricity back to utilities, potentially offsetting energy costs. It also impacts utility companies' grid management and could influence Indiana's energy market structure and renewable energy adoption rates.

Potential points of contention

  • Compensation rates: How much utilities must pay for surplus power—higher rates encourage adoption but increase costs for other ratepayers; lower rates reduce incentives for installing systems
  • Grid reliability concerns: Utilities may worry about managing variable power flows from distributed sources and grid stability, versus advocates who argue modern systems handle this effectively
  • Cost allocation: Whether all ratepayers subsidize renewable adopters or if costs should be borne only by those choosing to participate

Compiled from official sources — confirm details with the bill’s official record.

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