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, let’s 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 (inflow) for one kilowatt hour.
The utility companies currently charge as much as 300% more for peak power than
they
do for off-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 first 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/Off-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 fired 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.
DTE’s
ratepayers will be
paying for this plant along
with DTE’s 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 Michigan’s 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 tariff.
● 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 Michigan’s 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. off-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
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 efforts -- 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
