MPSC Report: Michigan’s Net Metering Program Grows 20 Percent In 2015

LANSING – Michigan’s net metering and solar program increased 20 percent in 2015 from the year before, reports a new study released Monday by the Michigan Public Service Commission Monday.

Under a net metering program, when customers produce electric energy in excess of their needs, power is provided back to the serving utility, permitting the customer to receive a credit.

Since 2008, when Public Act 295 required the establishment of a statewide net metering program, net metering has increased by 2,102 customers.

The report noted that net metering increased from 1,840 customers in 2014 to 2,155 customers in 2015.

Solar was again the most popular, with an additional 333 net metering installations adding a total of 2,570 kilowatts (kW) in 2015. (The number of net metering installations exceed the number of net metering customers because some customers have multiple installations.)

Category 1 projects, those up to 20 kW, account for 79 percent of the total net metering program capacity. The state’s two largest utilities, Consumers Energy and DTE Electric, host 83 percent of the statewide total net metering program capacity.

The Category 1 net metering program is available to customers until the program size reaches 0.5 percent of the electric provider’s peak load during the previous year. 

Category 1 net metering applies mostly to residential customers. Consumers Energy and DTE Electric have 34 MW or 94 percent and 44 MW or 83 percent of space remaining, respectively. Participation in Category 2 and 3 net metering is still low and has not reached program size limits. Commercial and industrial customers typically participate in Category 2 net metering. Category 3 primarily applies to farm customers and is limited to methane digester projects that are 550 kW and less.

Michigan’s net metering program is 0.019 percent of Michigan’s total retail sales.

Next year’s report will reflect that Upper Peninsula Power Company reached its Category 1 net metering cap and closed the Category 1 program on July 22, 2016.

The MPSC’s renewable energy website includes information on net metering and how to become a net metering customer.