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Bob McGovern · 02-18-09, 10:09 PM

Okay, here's some info on Michigan's net metering and incentives. It's not the worst I've seen, but the deck is firmly stacked in the utilities' favor. First, it's voluntary -- not every utility has to play. Second, since they had to go back and amend the interconnection permissions, you can guess the utilities were setting up major roadblocks. Third, they limit system size to your approximate household consumption, to prevent meaningful cogeneration. Fourth, they work on rolling credits rather than cash payments; any excess credits at year's end get zeroed out.

At least they credit you at retail prices, which is better than many states. In Wyoming, grid-tied RE owners pay retail cost for the electricity they draw off the utility (~$0.080/kWh) but get credited wholesale cost (~$0.025) for the power they add to the grid. It's called "avoided cost": what it would cost the utility to generate that electricity from coal. Takes a long time to pay off an RE system at 2.5 cents per kWh.

Michigan offers no money or tax breaks for residential RE systems. Looks like some individual utilities might. Here's THE clearinghouse for state and federal incentives: DSIRE.

02-18-09, 10:09 PM	#7
Bob McGovern Lurking Renovator Join Date: Feb 2009 Posts: 24 Thanks: 0 Thanked 0 Times in 0 Posts	Okay, here's some info on Michigan's net metering and incentives. It's not the worst I've seen, but the deck is firmly stacked in the utilities' favor. First, it's voluntary -- not every utility has to play. Second, since they had to go back and amend the interconnection permissions, you can guess the utilities were setting up major roadblocks. Third, they limit system size to your approximate household consumption, to prevent meaningful cogeneration. Fourth, they work on rolling credits rather than cash payments; any excess credits at year's end get zeroed out. At least they credit you at retail prices, which is better than many states. In Wyoming, grid-tied RE owners pay retail cost for the electricity they draw off the utility (~$0.080/kWh) but get credited wholesale cost (~$0.025) for the power they add to the grid. It's called "avoided cost": what it would cost the utility to generate that electricity from coal. Takes a long time to pay off an RE system at 2.5 cents per kWh. Michigan offers no money or tax breaks for residential RE systems. Looks like some individual utilities might. Here's THE clearinghouse for state and federal incentives: DSIRE.