On October 6, 2008, Governor Granholm signed SB 213 into law.  SB 213, known as PA 295, includes a provision directing the Michigan Public Service Commission to establish a statewide net metering program no later than 180 days after the effective date of the Act.

Following a public comment period,on March 18, 2009, the Commission issued an Order in Case No. U-15787 approving new net metering rules and revised interconnection rules.

On May 26, 2009, the MPSC formally adopted the Electric Interconnection and Net Metering Rules.

View New Electric Interconnection & Net Metering Standards Rules

Net Metering Program Highlights

Public Act 295 of 2008, one of Michigan's new energy laws signed by Governor Granholm on October 6, 2008, includes a new net metering program for customers of all MPSC-rate regulated utilities and cooperatives. Additionally, Michigan's Alternative Electric Supplier customers can participate.

The net metering program will encourage Michigan's utility, cooperative and AES customers to develop on-site renewable energy electric generation projects to meet some or all of their electric energy needs and reduce their electric bills. Under the net metering program, customers may install an on-site renewable energy electric generation project. The project must be sized small enough so that it is no larger than what is needed to meet a customer's electric energy needs. The customer will be able to reduce their electricity purchases from the utility by using their generated electricity "behind the meter."

During times of the day when the generator is making more electricity than the customer is currently using, the excess kWh are sent to the utility's distribution system (grid). How the credits for excess kWh are handled depends on whether the nameplate capacity of the customer's generator qualifies them for true net metering or modified net metering.

Net metering will be available to a utility's customers until the size of the program reaches 1% of their provider's previous year system peak in MW. The 1% previous year peak size of a utility's program will be measured against the total of the generator nameplate capacities for all participating customer's generators.

Renewable energy credits (RECs) belong to the net metering customer. A customer may be able to work out a purchase arrangement with their utility. REC prices are generally market based. Based on data from utility green pricing programs, REC values in the recent past have been between one and two cents per kWh. However, Michigan's Renewable Portfolio Standard is expected to have an impact on REC values, and could cause REC price increases in the future.