Distributed Generation (Net Metering) Program

  • The distributed generation program enables 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 distributed generation program, customers may install an on-site renewable energy electric generation project, such as a wind turbine or solar photovoltaic panel. 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" and receive a credit for excess generation.  As of December, 2016, Michigan had over 2,500 customers participating in the program.

    MPSC Staff held seven stakeholder meetings in 2017 to recieve feedback on Staff's study of the appropriate distributed generation tariff reflecting equitable cost of service for the program. 

    The Commission issued an order on July 12, 2017 finding that the net metering program shall continue as the distributed generation program until the new distributed generation tariffs are approved.  

    Customers who sign up up before new rates for the distributed generation program are established by the MPSC in a utility rate case after June 1, 2018 will also be able to maintain the terms and conditions under the net metering program for 10 years from the date of enrollment.

    A customer is considered "enrolled" in the program if they have submitted a complete application to thier utility. A utility has 10 business days from the submission date of the application to inform the customer whether the application is complete or deficient. The customer is given 60 days from the date of notification to rectify a deficient application.

    When a final distributed generation tariff is approved for each electric ... > More