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Michigan's renewable portfolio standard (RPS) was increased from 10% in 2015 to 15% in 2021. The RPS applied to all retail electric providers including, investor-owned utilities, cooperative utilities, municipal utilities, and alternative electric suppliers. Post 2021, investor-owned utilities, will continue to retire renewable energy credits (RECs) to achieve a 15% Renewable REC portfolio. Cooperative utilities, municipal utilities, and alternative electric suppliers may choose to voluntarily retire RECs and continue to achieve a 15% Renewable REC Portfolio.
The 15% Renewable REC Portfolio is demonstrated using RECs. One REC is equal to one megawatt-hour of renewable energy. Types of renewable energy include electricity generated from wind turbines, solar photovoltaic panels, biomass, waste-to-energy, and hydroelectric. The RPS law provides "incentive credits" for renewable energy with certain characteristics including on-peak renewable energy generation (not applicable to wind generation) and off-peak renewable generation stored in a battery or pumped hydro facility like Ludington Pumped Storage Facility and used during on-peak hours. An electric provider may substitute a limited number of energy waste reduction credits for RECs.
The Michigan Renewable Energy Certification System (MIRECS) is Michigan's REC tracking and certification system. Renewable electricity generation is entered into MIRECS and RECs are created. At the end of each year, electric providers show that they have achieved the Renewable REC Portfolio by moving RECs, incentive credits, and, if applicable, energy waste reduction credits, into an annual retirement folder which is then submitted to the MPSC for review.
Nearly all of the renewable energy used to meet the requirements of Michigan's RPS is generated in Michigan. Since the first RPS law was enacted in 2008, wind has been the resource most commonly added to fulfill the needed supply of renewable energy, but solar has been growing substantially due to lower prices. Once a year the MPSC issues an annual report.