MPSC report finds continued growth in renewable energy and distributed generation, with significantly more to come

FOR IMMEDIATE RELEASE  Oct. 8, 2025
News media contact: Matt Helms 517-284-8300

A new report from the Michigan Public Service Commission finds continued growth in the state’s renewable energy and distributed energy programs, with participation expected to continue to rise as the state implements the changes made to Michigan’s energy laws in 2023.

The MPSC’s Status of Renewable Energy, Distributed Generation, and Legacy Net Metering in Michigan report finds that electric utilities regulated by the MPSC had more than 7,500 megawatts (MW) of renewable capacity at the end of 2024 and more than 8,300 MW expected by the end of 2025, based on contracts approved by the Commission. Utilities added 1698 MW of renewable energy in 2024, an increase of 28.9% over the 5882 MW of renewable capacity that was online at the end of 2023.

That figure is expected to reach 17,800 MW by 2030 as renewable energy expands to meet the standards set in Michigan’s energy laws revamped in 2023 and commitments made in utility resource plans that speed up the state’s transition to cleaner sources of energy and reduce reliance on fossil fuels that contribute to climate change. The amount of renewable generation in service statewide will exceed that number because utilities not regulated by the MPSC aren’t required to submit renewable energy contracts to the Commission.

Wind continues to be the largest source of renewable energy in Michigan, accounting for 67% of renewable generation. Solar generation continues to grow rapidly in Michigan, accounting for 18% of renewable generation in 2023, the report found.

Michigan’s electric providers were required to meet a 15% renewable portfolio standard by 2021. With the passage of the revamped energy laws in 2023, electric providers are now required to meet a 50% renewable portfolio by 2030 and 60% by 2035.

Among the report’s other highlights:

• The generation capacity of Michigan’s distributed generation program increased to 222.4 MW in 2024 from 189.6 MW in 2023, a more than 17% increase. Continued growth is expected because Public Act 235, part of the 2023 energy law update, increased the minimum distributed generation program size for regulated utilities to 10% of a utility’s average in-state peak load for the previous 5 years, up from 1%. Customer participation increased to 23,910 customers with 24,150 installations in 2024, up from 21,609 customers with 21,845 installations in last year’s report.
• Growth remains strong in utility voluntary green pricing (VGP) programs, with customer participation exceeding 100,000, up from fewer than 40,000 in 2023, significantly contributing to renewable energy growth.  Most VGP program participants are customers of Consumers Energy Co. or DTE Electric Co., the state’s two largest electric utilities. Both have exhausted the currently available renewable energy supply for their commercial and industrial programs as renewable energy pricing has reached market parity. The demand for VGP program supply is contributing substantially to renewable energy growth.

The report notes uncertainties created by federal legislation including the One Big Beautiful Bill Act, which accelerates sunsets for tax credits that have been applied to nearly all renewable energy developments in Michigan, in addition to federal tariff policies expected to raise costs for renewables.

For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

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