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Michigan

An arrow graphic shows that Michigan’s renewable portfolio standard increases from 3 percent in 2012, to 10 percent in 2015, to 15 percent in 2021.

Carve-out: None
Tracking system: Michigan Renewable Energy Certification System (MIRECS)


Michigan's Renewable Portfolio Standard (RPS) has additional requirements for the two largest Investor Owned Utilities (IOUs):

  • DTE Energy—600 MW by 2015
  • Consumes Energy—500 MW by 2015.

Solar is eligible for 2X credit multiplier.

Michigan passed S.B. 437 and S.B. 438 in late 2016, which made changes to the state's renewable portfolio standard and net metering policies. Michigan's RPS increased from 10% in 2015 to 15% in 2021, with a requirement of 12.5% in 2019 and 2020. Michigan offers net metering to customers for up to 150 kW of system capacity, as well as streamlined interconnection for net-metered systems. Midmarket customers may be eligible for financing from the Michigan Energy Office.

Latest Updates

  • In December 2016, S.B. 437 directed the Public Service Commission to develop an alternative distributed generation compensation policy.
  • Another bill passed at the same time, S.B. 438, increased the RPS requirement from 10% in 2015 to 15% by 2021.

Net Metering

Michigan's net metering rules apply only to rate-regulated utilities (IOUs and rural electric distribution cooperatives that have not opted for member regulation) and alternative electric suppliers. Many Michigan utilities reached or nearly reached their aggregate cap on net metering in 2016. S.B. 437, passed in December 2016, directed the Michigan Public Service Commission to develop a new distributed generation compensation policy, while the net metering program provisions from the existing program were retained.

System size limit: 150 kW

Aggregate cap: 0.75% of utility's peak load of the previous year

Credit: Smaller than 20 kW: retail rate; larger than 20 kW: power supply component of retail rate.

RECs: Customers retain ownership of RECs

Meter aggregation: Not addressed

Interconnection

Interconnection standards include five levels of interconnection with cutoffs at 30 kW, 150 kW, 750 kW, and 2 MW. Utilities have detailed rules and procedures.

Eligible Systems Type of Interconnection
Certified inverter-based system ≤ 2 kW Category 1
Systems >20 kW and ≤ 150 kW Category 2
Systems>150 kW and ≤ 550 kW Category 3
Systems >550 kW and 2MW Category 4
Systems >2MW Category 5

System size limit: Not specified

Liability insurance: Varies by system size and type

External disconnect switch: Not required

Third Party Ownership

Third-party solar Power Purchase Agreements (PPAs) are allowed in Michigan. Third-party system owners are exempt from Public Service Commission regulation.

Community Solar

There are currently no community solar policies in Michigan.

Utilities and third-party developers offer community solar programs in the state.

State Incentive Programs

Program Administrator Incentive
Energy Revolving Loan Fund Michigan Energy Office Solar PV projects are eligible for loans of up to $350,000 at 6% interest.
Renewable Energy Renaissance Zones Michigan Economic Development Corporation Solar PV equipment located within designated Renaissance Zones is exempt from the Michigan Business Tax, state education taxes, property taxes, and local income taxes.

Utility Incentive Programs

Non-profit customers in the service areas of member utilities of WPPI Energy may be eligible for grants of up to $100,000 for solar PV projects. The grant program does not have an explicit system size cap, but may "best apply" to systems <80 kW.

Resources

The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Renewable Portfolio Standard

Net metering and interconnection

Programs and incentives