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Renewable energy in Michigan is primarily used by electric providers for renewable portfolio standard compliance, to provide supply for voluntary green pricing programs, for on-site customer use through a distributed generation program, or for sale to an electric provider by a qualifying facility under the Public Utility Regulatory Policies Act of 1978.
Renewable Portfolio Standards
The Renewable Energy Standard requires Michigan electric providers to achieve a retail supply portfolio that increases from 10% in 2015 to 15% in 2021. There is an interim compliance requirement of 12.5% in 2019 and 2020.
PURPA is a federal law enacted in 1978 in reaction to an energy crisis and implemented by state public service commissions for rate-regulated electric utilities. PURPA's goals are to encourage competition, conservation, reliability and efficiency in generating and delivering electricity.
2016 PA 342, Sec. 61 directs electric providers to offer customers the opportunity to participate in a voluntary green pricing program. Electric providers whose rates are regulated by the MPSC must have their programs approved by the Commission.