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Tuesday, June 12, 2018

Sierra Club Solar Partners Answer Questions about the Future of Net Metering


Is this your last chance for a Net Metered Solar Array in Michigan?

In recent months, there have been so many questions surrounding Net Metering. So many that our solar partners, Michigan Solar Solutions and Solar Winds, feel it is time to explain what is going on with the program and how current and future solar array owners in the DTE and Consumers Energy territories have the knowledge to maneuver in the solar incentive arena while the utilities and Michigan Public Service Commission (MPSC) prepare to end the program.

   First Question (and a good question) is What is Net Metering?


Net Metering is the process where solar power producers put mostly peak power onto the grid at mes when they produce more power than they can consume, and take mostly off-peak power off the grid at night or when their system is not producing enough power.

On a small scale, lets say that a solar array is producing three kilowatt hours and the building is using one kilowatt  hour--simple math shows us that there is excess power in the mix of two kilowatt hours at that moment in time. The excess power is pushed back to the grid (outflow) and the net metering customer is credited two kilowatt   hours on their bill at a rate equivalent to what they are paying their utility provider. On the other side of the equation if the same user is consuming 4 kilowatt hours, the bill would reflect a charge (inow) for one kilowatt hour.

The utility companies currently charge as much as 300% more for peak power than they do for o-peak power. It is important to note that solar power is consumed mostly in peak periods and the outflow is sent to the grid.

Michigan residents/businesses, who are currently enrolled in the net metering program have been content with an equal 1-for-1 credit, but sadly, the utility companies are not; independently owned solar energy producers are perceived as competition. Since Net Metering customers are the rst competition many of these monopolies have seen, DTE and Consumers Energy have been relentless in their pursuit to end Net Metering. With that said, though, other states have successfully gone through the process of assessing the true value of solar power and are finding that solar power is worth much more than regular power.

   Isn’t Power -- Power? How can the True Value of Solar Power be Determined as Worth More?

Yes, Peak/O-Peak valuation is one reason. Another reason is the practice of building more power plants when peak demand nears full capacity so brownouts or blackouts are not experienced.

With enough solar power feeding the grid we do not need these new power plants. It is a desirable practice for a utility company to build a new power plant because, once they get approved, they are automatically guaranteed to make a little over 10% on the cost of the construction of the new plant. The new $1,000,000,000.00 (one billion) gas red power plant in St. Clair that the MPSC just approved for DTE guarantees them over $100,000,000.00 (one-hundred million) in profit. With cost overruns it will be more.



When the owner of a building makes over 10% on all cost overruns then, of course, there will be cost overruns. DTEs ratepayers will be paying for this plant along with DTEs profits for building it, for many years to come.


   Is Solar Power Supported on Both Sides of the Aisle in the State of Michigan?


Solar power is no longer a Democrat versus Republican issue. Solar power is now supported by both sides of the aisle.   All recent polls regarding support for solar have shown over 70% of Michigans residents support solar power.

This was recently reaffirmed by the tax exemption bill for solar being sponsored by a Republican legislator and passed out of a mostly conservative tax committee with an 11 – 2 vote.


   Is Net Metering Scheduled to End For DTE & Consumers Energy Customers? If so, When?


Here is the timeline with details:

    June 1, 2018: Deadline for Publicly regulated utility company to submit a rate case to the MPSC. With the rate case, they are required to include the replacement for Net Metering called Distributed Generation.

    The utility companies will propose to the MPSC what they want to pay solar system owners for the power they send to the grid. The MPSC will take 10 to 12 months to work with the utility company to finalize what the reimbursement will be.

The Good News!
  • All system owners that have applied for Net Metering prior to early/mid 2019 will be grandfathered in for 10 years.
  • Installing Solar before Distributed Generation will lock solar system owners into the Net Metering Program. So, NOW is the time to Install a Solar Array! 
  • If the reimbursement rate ever exceeds the purchase price for power, the solar system owner can opt out of their grandfather and enter the new Distributed Generation tari.


   Is there a way to Demand a Decent Rate of Reimbursement of Kilowatts Produced by Our Solar Array?

If we are going to get solar power producers a fair price that is representative of the value of this resource and the monies it saves all ratepayers, then we need to contact our Michigan legislators and demand they pass the Energy Freedom package -  House Bills 5861-5865--which would ensure that rooftop solar owners get a fair price for the excess energy they share with the grid. Find more info on this proposal here.

Please take a moment this summer to call your state Representative (find them here) and state Senator (find them here) and demand that they support House Bills 5861-5865. Demand that they side with over 70% of Michigans residents and set the reimbursement rate for power sent to the grid to be on par with the value of the resource.

A 1-for-1 credit is the baseline for where this needs to be. If it is going to reflect the cost savings to all ratepayers for peak power vs. o-peak power and not needing more billion-dollar plants, then there should be a premium.

And contact the MPSC to tell them the same thing!

MPSC                                                                           MPSC
Sally Talberg – Chairperson                                        Julie Baldwin, Manager
517-284-8330                                                              Renewable Energy Secon
Michigan Public Service Commission                         Michigan Public Service Commission
PO Box 30221                                                             517 284-8318
Lansing, MI 48909                                                      Baldwinj2@michigan.gov

It has never been more important than it is now for you to start a letter, email or phone  campaign to make your voice  heard. The utility companies spend millions in their lobbying eorts -- we just have each other.

Please keep in mind, that the power from your electricity provider is not a good investment -- it is a negative return on investment (ROI). Investing in Solar Photovoltaics (PV) gets you a positive ROI and shows up on your power bill as monthly credits for power generated, and you have an actual payoff date and the promise of low-cost power for decades to come.

Also, do not hesitate to give one of the Sierra Club Solar Partners a call to discuss how a solar array will fit into your ecological and financial future.

Sierra Club Solar Partners,

Mark Hagerty                                                                          Mike Linsea
Michigan Solar Solutions                                                       Solar Winds Power Systems
248 520-2474                                                                         616 635-7855

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