Here is a snippet of Consumers Energy net excess generation credits policy.
 NEG Credits are carried month to month for up to a 12-month billing cycle. After the customer’s June billing cycle, any NEG Credit balance will be reset to zero. Any unused NEG Credits will be retained by Consumers Energy, and their value will help offset the company’s Net Metering Program costs. NEG Credits are nontransferable.
The Net Metering Program, approved by the Michigan Public Service Commission, is a way for customers who generate a part or all of their electricity using renewable resources to receive generation credits.
Wind Power Services LLC receives many calls from folks who want to install a wind system. As part of our initial assessment process we ask, why do you want to use a wind turbine? One of the top three answers is, "I want to sell my extra power to the utility company and make some money" This is one of the largest misconceptions that plague the small wind industry of Michigan.
Under current MPSC regulation this is not reality. For lack of a nicer way to put it, the MPSC should remove Public service from their name and replace it with Michigan Private Utility Commission. When it comes to net metering in Michigan our regulators are currently failing us and favoring the large utilities.
Well I don’t have Consumers you say! This is Current state policy across the board. Wind Power Services LLC participated in the Michigan Wind Working groups net metering under 30kw discussion along with many other organizations. All though The MPSC staff seemed to be listing to the many comments that suggested a more balanced net metering policy, the staffs recommendations to the commission seems to be lost in the wind. As you start looking at the interconnection, net metering process you will begin to understand when it comes to net metering in Michigan there are many hoops to jump through, hurdles to clear and policy to be changed. Simply stated under current regulation you will not make money from a wind turbine and you will not get paid for any  power produced beyond what you use. To keep current on net metering in Michigan, or make public comment for change we suggest you visit the MPSC WEBSITE.
We have highlighted a few key words with in this summary as to why net metering in Michigan’s current policy needs change.
Summary Provided by DSIRE
In March 2005, the Michigan Public Service Commission (PSC) approved a consensus agreement that implements a voluntary statewide net-metering program for a minimum of five years. Systems that generate electricity using solar, wind, geothermal, biomass (including waste-to-energy and landfill gas) or hydropower are eligible.* The maximum size of electric generators eligible for net metering is less than 30 kilowatts (kW), unless a utility voluntarily sets its limit at less than 150 kW (to match size categories established by the state's interconnection rules). Non-dispatchable generation (e.g. solar and wind) must be sized not to exceed the customer's annual energy needs, measured in kilowatt-hours. Dispatchable systems should be sized not to exceed the customer's capacity needs, measured in kilowatts. The application fees, procedures and requirements of Michigan's interconnection rules also apply to net-metered systems. There is an aggregate program limit of 0.1% of each utility's peak load or 100 kW (whichever is greater).
However, utilities are permitted to use a variety of billing options under the consensus agreement, and some utilities' billing practices do not actually constitute "true" net metering. Any customer net excess generation (NEG) is carried over to the customer's next bill, at the utility's retail price of generation, for a 12-month period. Any NEG remaining at the end of a 12-month billing cycle is awarded to the utility, and the value of these credits will be used to offset program costs. Customer-generators retain ownership of all renewable-energy credits (RECs) associated with the generation of electricity.
Customers may participate for at least 10 years after entering the program. Participating utilities are required to report their program results annually. The data will be incorporated into the annual report to the PSC by the Michigan Renewable Energy Program (MREP) Collaborative working group. After the fourth year of the program, the MREP Collaborative will submit a report to the MPSC evaluating the program and making recommendations for the future of net metering in Michigan.
The following utilities are participating in the program: Detroit Edison (DTE Energy), Northern States Power Company (Xcel Energy), Indiana Michigan Power (AEP), We Energies, Consumers Energy, Wisconsin Public Service Corporation, Alger Delta CEA, Michigan Electric Cooperative Association, HomeWorks Tri-County Electric Cooperative, Cloverland Electric Cooperative, Great Lakes Energy, Ontonagon County Rural Electrification Association, Presque Isle Electric & Gas Cooperative, Thumb Electric Cooperative, Upper Peninsula Power Company, and Alpena Power Company.
* In October 2005, the PSC approved a request by Detroit Edison to offer net metering to customers with fuel cells and Stirling engines regardless of the fuel used to generate electricity. |
To Learn more about your specific utility company’s generation interconnection requirements and net metering programs visit Michigan’s Regulated Electric Utility Companies.
We have highlighted a few key words with in this summary as to what Net Metering should be in Michigan. Summary and additional information available at U.S. Dept. Of Energy
Net Metering Policies
Net metering programs serve as an important incentive for consumer investment in renewable energy generation. Net metering enables customers to use their own generation to offset their consumption over a billing period by allowing their electric meters to turn backwards when they generate electricity in excess of the their demand. This offset means that customers receive retail prices for the excess electricity they generate. Without net metering, a second meter is usually installed to measure the electricity that flows back to the provider, with the provider purchasing the power at a rate much lower than the retail rate.
Net metering is a low-cost, easily administered method of encouraging customer investment in renewable energy technologies. It increases the value of the electricity produced by renewable generation and allows customers to "bank" their energy and use it a different time than it is produced giving customers more flexibility and allowing them to maximize the value of their production. Providers may also benefit from net metering because when customers are producing electricity during peak periods, the system load factor is improved. |
To learn more about net metering visit AWEA
Guides to net metering in easy to print PDF
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Net Metering and Zoning Issues
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Freeing the grid (*114 pgs)
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Intro to Distributed Generation
Wind Power Services LLC will continue to fight for net metering policy in Michigan that encourages customers to participate in renewable energy technology and is not so one sided as to favor the large utilities. For more information on how you can help change net metering policy or to let us know about any issues you have had trying to interconnect or net meter, please CONTACT US.
* If you feel that after reading this page Wind Power Services LLC has animosity toward current net metering policy then we are pleased to say, you have read it right. |
