Michigan Sun Setting On Net Metering

michigan sunset Copyright Celtic Acres LLC All Rights ReservedIn December 2017 Michigan Public Service Commission recommended a tariff based “inflow-outflow” model to replace net metering. Under this model, ratepayers would pay retail price for electricity they use from the grid, which is the same as the current net metering model. The difference is the way ratepayers will be compensated for electricity they put on the grid. The utility would purchase any excess electricity generated at an “avoided cost” rate based on Public Utility Regulatory Policies Act (PURPA) contracts. What does that mean?

That means a ratepayer sending the utility excess electricity generation would be compensated about 5 cents less per kilowatt hour compared to the “one-for-one” credit which is in place with net metering.

The good news is if you install solar in 2018, you will be grandfathered in for 10 years from the date of your enrollment in the net metering program. In addition, there is still a 30% Federal Tax Credit available if you install your system in 2018.

Grid-tied systems are currently the most cost-effective way to employ solar. There is a big effort developing cost effective battery storage. For instance, sonnenBatterie is a smart system which routes electricity first to your house to supply the power you. It recognizes excess power and can store this for later use, for instance at night when the sun is not shining, and you are not producing energy.

Why the focus on developing these storage systems? The simple fact is, utility companies are in business to profit from the supply of energy. They do not want to purchase power from you. So companies like sonnenBatterie are developing systems that are a win-win. You get to keep your power and the utility doesn’t have to buy it from you. Your “avoided cost” for power you have stored will be avoiding the retail rate of purchasing electricity.

I predict over the next 10 years technology will further advance and you will be able to inexpensively retrofit the system you install this year. In the meantime, you can take advantage of the net metering in Michigan. So, what are you waiting for? Electricity rates are going no where but up. Why not put your roof to work for you today. Complete our Virtual Assessment form to take the first steps towards independence from your electric provider. You’ll be glad you did!



Celtic Acres LLC
DBA Simply Solar PV
PO Box 613
Rockford, MI 49341

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