As we are seeing more renewable energy projects and commitments around the state, the Michigan Public Service Commission (MPSC) is asking for feedback on a new cost-based model for customers who want to develop their own on-site renewable energy.

As Crain’s Detroit Business reports, the state’s Net Metering program is ending due to Michigan’s 2016 energy legislation reform.

The current program allows people to develop on-site renewable energy such as wind turbines or solar panels to meet all or some of their electric needs and receive credits for any excess energy generated that goes back into the energy grid. Michigan residents can still develop their own on-site renewable energy, but the model is changing.

What’s the proposed change?

• Now the MPSC is tasked with creating a cost-based distributed generation tariff (DGT). Distributed generation is the approach used by customers to produce electricity, in this case, renewable energy.
• The MPSC says “although customers will see higher monthly bills than under the prior NEM (net metering) billing mechanisms, the difference is solely attributable to recovery of a Distributed Generation customer’s ‘equitable cost of service’ and ‘fair and equitable use of the grid.’”

The agency is taking comments on their proposal for the DGT through this Wednesday, January 10. 

Until the model is finalized this spring, it’s difficult to say if or how it may impact renewable energy participation.

This comes as we are getting new numbers from the MPSC which show renewable energy usage is growing in our state.

The MPSC’s annual report details a 28 percent increase in residential and business solar energy participation.

Crain’s Detroit Business reports, “more than 92,000 people now work in the clean energy industry in Michigan, which ranks third among 11 Midwest states in clean energy employment.”

The city of Ann Arbor recently committed to be 100 percent renewable energy by 2035.

MLive reports that the city may consider joining DTE Energy’s MIGreenPower Program. The program, which launched last spring, is a renewable energy program that’s open to all DTE business and residential customers and allows them to increase the amount of renewable energy they use in 5 percent increments, up to 100 percent. 

DTE Energy currently has 47 renewable energy projects in operation around the state.

Consumers Energy also has a robust and growing renewable energy portfolio with their Green Generation Program for customers, solar gardens and their solar rooftop program.

Consumers Energy announced last week its third wind energy project is now serving customers in the Thumb. In its current phase it can serve about 17,000 residents.

With all of this progress, in December, the C. S. Mott Foundation announced a shift in grantmaking around climate change solutions in 2018, moving from boosting the use of renewable energy in Michigan to international work. The foundation says this shift is due in part to successful outcomes in Michigan.

“One of the goals of the climate change solutions program we approved in 2015 was to accelerate Michigan’s clean energy transition,” Sam Passmore, environment program director, the C.S. Mott Foundation said. “The foundation helped support that transition by providing a total of $3 million to more than 10 grantees working on clean energy solutions at the community level. However, it also became clear over the last three years that Michigan’s clean energy transition is very much underway, due to powerful economic and policy forces.”

A potential sign we will see continued growth for clean and renewable energy in communities as they seek to cut costs and reduce their environmental footprint.

Want more?

View the MPSC's resources on this topic, scroll down to access the "draft report."