Michigan
Incentives/Policies for Renewables & Efficiency
|
 |
Last DSIRE Review: 10/26/2009
|
Summary:
Note: While the overall program limit is set at 2 megawatts (MW), Consumer's Energy has already received applications for more than 6.3 MW of capacity. New applications continue to be accepted, but they will be placed in a queue for funding should it become available due to project failures or application withdrawals.
In addition, in response to concerns from installers and developers, the in-service deadline for residential and non-residential projects seeking the higher incentive amount has been extended to May 1, 2010. The higher incentive level is intended apply to the first 250 kW (residential) or 750 kW (non-residential) of capacity that comes on-line by the May deadline. Projects that miss this deadline will be eligible for the lower incentive. If a portion of a project’s capacity will exceed the 250 kW or 750 kW limit, that project will be offered the rate that corresponds to the largest proportion of the project capacity above or below the limit.
Beginning in August 2009, Consumers Energy of Michigan is offering its residential and non-residential customers an experimental buy-back tariff - termed the Experimental Advanced Renewables Program (EARP) -- for electricity produced by solar photovoltaic (PV) systems. Owners of residential systems from 1 - 20 kilowatts (kW) and non-residential systems from 20 - 150 kW are eligible to participate in the program. The minimum system size is 1 kW. Residential customers must receive electric service on tariff rate RS or RT in order to be eligible for the program. Non-residential customers on tariff rates RS, RT, GS, GSD, GP, and GPD are eligible for the program. The overall program is limited to 2 megawatts (MW) with 500 kW reserved for residential sites.
It is important to note that this is not a net metering program and program participants are not eligible for net metering. Under the program, Consumers Energy will purchase all of the electricity produced by the system through a fixed-rate contract of 1 to 12 years. Electricity production is metered separately from the customer's existing electricity source (i.e., the grid). Participants are assessed a monthly System Access Charge equivalent to the existing distribution account used to qualify for the program to cover metering costs.* Systems with battery back-up or any other type of energy storage capability are not eligible to participate in this program. Purchase rates are as follows:- Residential: $0.65/kilowatt-hour (kWh) for systems available by May 1, 2010 (up to roughly 250 kW of capacity); $0.525/kWh for systems that do not qualify for the higher level.
- Non-residential: $0.45 kWh for systems available by May 1, 2010 (up to roughly 750 kW of aggregate capacity); $0.375/kWh for systems available in 2010 that do not qualify for the higher incentive level.
Solar systems that receive the residential tariff rate may not be located on property that is used for commercial purposes, such as rental properties, warehouses, workshops, office buildings, etc.. Tax exempt entities are not eligible to participate in the program under the residential rates, although they are eligible under the non-residential rates. Third-party ownership structures are not eligible for the program. The applicant must be a Consumers Energy customer on one of the qualifying electricity rates and must own the generating system. If the generation system is located on property that is not owned by the applicant, the applicant must have a lease or other instrument that permits them to construct, own, and operate the system throughout the term of the contract. Systems installed on newly constructed buildings are eligible for this program as long as the applicant will receive electric service from the utility at that site, or an adjacent site.
In order to be eligible for the program, solar equipment must be manufactured in the state of Michigan or constructed by a Michigan workforce. The manufacturing requirement can be met if 50% or more of the equipment and material costs associated with the system are attributable to components manufactured or assembled in Michigan. In order to qualify as a system constructed by a Michigan workforce, at least 60% of the total labor hours associated with installing the system must be performed by Michigan residents. All systems must meet the requirements of UL 1741 and IEEE 1547.1 and be installed in compliance with all current local and state electric and construction code requirements. The utility owns all renewable energy credits (RECs) associated with electricity purchased under this program, including all Michigan RECs, Michigan Incentive RECs, and Federal RECs.
The program began accepting formal applications on August 3, 2009 and is scheduled to run through December 31, 2010, subject to the limitations on overall enrollment described above. For further information on this program, please see the EARP tariff and application documents above, and contact program personnel.
*The System Access Charge for the EARP is set at $6 per month for tariff rates RS and RT; $15 per month for tariff rate GS; $25 per month for tariff rates GSD and GP; and may not exceed $50 per month for other eligible customers (i.e., tariff rate GPD).
|
|
|
 |
Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
|
