Michigan State Solar Power Rebates, Tax Credits, and Incentives

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Mackinac Point Lighthouse, courtesy of The Pentax Hammer.

Solar Legislator Score:

CONSUMER’S ENERGY FEED-IN TARIFF UPDATE – 4/27/09

Due to Michigan’s strong renewable energy portfolio standard (RPS), utilities are starting to propose juicy incentives to get you interested in going solar. The most recent comes from Consumer’s Energy. They have proposed a feed-in tariff, similar to what was recently enacted in Gainesville, Florida to spur on more interest in solar. If you’re new to what feed-in tariff’s are, basically the utility pays YOU significanly more for the electricity you feed back into the grid with solar than the going rate for electricity. The Consumer’s Energy proposal is for $0.65/kwh! This is a substantial sum, when you consider the average price per kwh in the state is $0.11.

Here are some added details:

  • Solar PV only
  • Program cap 2 MW (500 kW reserved for residential customers) (Not an annual cap but a total program cap)
  • Project cap 150 kW
  • Project minimum: commercial 20 kW, residential 1 kW
  • 50%-60% Michigan Content Requirement (can be labor added)
  • 12 year contracts
  • $25/month service charge
  • 2009 Tariffs
    • Residential: $0.65/kWh
    • Commercial: $0.45/kWh
  • 2010 Tariffs
    • Residential: $0.525/kWh
    • Commercial: $0.375/kWh

For the nitty gritty, click here and check out pages 9, 26-28, 232-234 and 242!

While the $25/mo service fee seems strange, consider you’ll be making much more than that monthly for selling your power back to the utility, so it really isn’t much of a big deal. Even if you aren’t in Consumer’s service territory, there are bound to be other Michigan utilities jumping on board in the near future.

The proposal has not yet been approved, so if you’re a Consumer’s Energy customer, we recommend connecting with multiple installers in Michigan to give you a quote so you can begin budgeting.

SUMMARY

Government representatives in Michigan have embraced solar power. In fact, the state has previously sought measures to provide its residents and businesses with the best solar incentives per kWh in all of North America!

In October 2008 Michigan enacted Public Act 295, creating a renewable portfolio standard (RPS) and authorized a mandatory statewide net metering program. This program will replace the state’s current voluntary net metering program, instead it will require utilities to offer net metering to their solar producing customers. This requirement could go into affect as soon as April 4, 2009 and will apply to all rate-regulated utilities and all alternative electric suppliers in Michigan.

Personal Exemption

· Residential Energy Conservation Subsidy Exclusion (Personal)

Personal Tax Credit

· Residential Energy Efficiency Tax Credit

· Residential Solar and Fuel Cell Tax Credit

Corporate Tax Credit

· Business Energy Tax Credit

· Renewable Electricity Production Tax Credit (PTC)

State Grants, Tax Exemptions, Utility Rebates, Utility Loans and Utility Programs

Property Tax Exemption

Alternative Energy Personal Property Tax Exemption

State Grant Program

Energy Efficiency Grants

Energy Star Home Grant Program

Large-Scale Photovoltaic Demonstration Project Grants

Utility Rebate

Wisconsin Public Power, Inc. – Renewable Energy Rebate

Sample 3kW System – Home Installation Cost

System

Michigan Solar Power Rating

System Cost

Rebates

Pay-Off Rate

3kW

Good

$27,000

Tax exemption &

30% tax credit up to $2,000 for solar electric and solar water heating

Varies based on usage. Could pay for itself in 9-10 years with new law.

Consider you want to cut your electric bill in half and purchase a 3kW solar system for your Michigan home. The only incentive you’re gonna get from the state of Michigan is a tax exemption on the install. However, you can still take advantage of the Federal tax credit. The real value from the state of Michigan is going to come from that new energy bill. When that passes, you can sell the energy you do not use to the power company for .65/Kwh. This is unlike any other system in place to this date in North America (Gainesville, Florida and Ontario, Canada are on board with feed-in tariffs too) and makes it more likely you’ll achieve much faster payback! Moreover, a system like this will save 71 tons of Greenhouse Gas over 25 years! That’s roughly similar to avoiding 90,000 automobile miles!

CONSENSUS

With Governor Jennifer Granholm spear-heading the effort to spur solar energy use in Michigan, the skies look sunny for local residents considering going solar. However, until more utilities introduce legislation similar to the feed-in tariff proposed by Consumer’s Energy, installing solar in the state is quite costly. Germany’s feed-in tariff created 170,000 jobs and resulted in the most solar installed per capita in the world. These results are encouraging, given that skies are sunnier in Michigan than Germany. Therefore, we think it will have a similar effect on the local economy when implemented in Michigan. Expect explosive things to happen to the Michigan solar industry if this proposal is approved. Other utilities are sure to follow suit.

Get free solar quotes for your Michigan home or business.

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20 comments.

Pingback on November 7th, 2007.

[...] off the trees nearby. Hmm. Solar incentives and programs for the state were updated last night. Check them out here.  Email This Post no comments yet.« Berkeley Passes the Kick Ass Solar Loan [...]

alex
Comment on April 23rd, 2008.

check out the new bil just introduced!

HB 6006 of 2008 Income tax; credit; for the purchase and installation of certain residential renewable energy systems; create.

Its about time!

Comment on May 30th, 2008.

I owned a solar energy co. 1981 to 1985 until the energy tax credits ended (selling airwalls). does anyone think there’s any future in these systems if we can get back our 50% federal tax credits?

Chad
Comment on July 12th, 2008.

I think everybody in Michigan should get solar panels. If i can create the energy i use and it also creates jobs lets all jump on the band wagon.

Mark Hagerty
Comment on September 4th, 2008.

If you truely want Michigan to adopt renewable friendly legistlation please contact your local State Congressman also please contact;

Jennifer M. Granholm, P.O. Box 30013 , Lansing , Michigan 48909
Frank Accavitti, Jr., P.O. Box 30014 , Lansing , Michigan 48909

Please tell them to fully support HB5218, HB5548 and HB5549.

HB5218, sponsored by State Representitive Kathleen Law 23rd District, is discribed above.
HB5548 and HB5549 will require the utility companies to include renewable sources in their respective energy portfolios.

You can make a difference if you act.
Thank you
Mark Hagerty

Comment on September 4th, 2008.

Mark,

Thanks for your comment and call to contact those folks in Lansing!

Gerald
Comment on September 30th, 2008.

I’m amazed how Michigan pushes solar having only about 85 clear days a year… We are much better suited for wind having more coastline than any other state….however virtually no incentives for wind power. A single small turbine generates more power, more reliably than a dozen large solar panels…nonetheless at least effort is being made for alternative energy.

Dave
Comment on October 14th, 2008.

I just found your site and its very interesting!! I am happy to find a site that deals with solar in Michigan and all across the country as well. I am a student at St. Clair Community College in Port Huron, MI, and my field of study is altrnative energy.

Mark Hagerty
Comment on October 20th, 2008.

Gerald, you are absolutely correct about Michigan’s wind potential. 14th in the entire nation. Michigan just commissioned two 2 megawatt turbines this month. Although the impression you left about our potential for solar is off. Michigan has 4.2hrs of peak sunlight daily, on a yearly average. This is far more than Germany has. Germany is 50% ahead of their goal of 20% renewable by 2020 because of solar. Solar also produces the most when utility companies are at peak demand, keeping us from needing more coal plants. Please check out http://www.michigansolarsolutions.com for the ‘Fun Facts’ section and the ‘MSS Blog’

Pingback on October 31st, 2008.

[...] Michigan State Solar Power Rebates, Tax Credits, and Incentives [...]

Keith Warnick
Comment on January 7th, 2009.

For businesses and government agencies in need of eco-friendly, quiet and trailerable electricity, I represent SolaRover; solar-powered generators. 10kW or 20kW capacity. No noise, fumes and payback in 3 to 5 years. Can be used as a source for electric car recharging. Contact keith(at)keithwarnick(dot)com for more information.

Stan Graff
Comment on March 4th, 2009.

It would be helpful to be able to deduct the cost of the solar installation from any gains when one sells a house. With payback of 8 years, it may not seem worth it. But with a huge deduction when you sell, it would be great.

Rick Middleton
Comment on March 12th, 2009.

Has there been an update on the progress of these Michigan bills?

cathy
Comment on March 23rd, 2009.

was wondering if we install a solar panel system in Michigan and lose power from DTE like we do every year during the summer storms will our system keep running the house

Tim
Comment on March 24th, 2009.

I have been a residential builder/re modeler for 25 years. Self employed. Business is slow now. How do I become informed and educated as how to offer these to customers and become certified with solar panel system installation installation in Michigan.

Dale
Comment on March 29th, 2009.

Correct me if I’m wrong here, but isn’t Michigan’s proposed buy back of $.65/kWh for unused Solar Power a mute point? Since most residential solar generation systems only generate about 25% -50% of the total power used by a household, there wouldn’t be any power being sold back to the power companies. It may sound good, but it looks like there is no bite that goes with this bark…

Pete
Comment on April 19th, 2009.

Solar Energy will Fail! Under the guise of Global warming the department of Energy (DOE) is part of the program of spraying to form clouds,some people call them chemtrails. Our future is growing Dimmer everyday, which is man made and the men involved are the(CFR). Call senator Levin and ask him about it.Senator Levin is very smart and very informed, I just wish he was on our side (The side of the People).

Jeff Ostrom
Comment on April 27th, 2009.

In the body of this site you reference a $.65/Kwh feed-in tariff that is contained in a “new energy bill”. I have been unable to find another reference to said bill. Can you help direct my efforts?

Pingback on April 27th, 2009.

[...] Michigan no comments yet.« Pennsylvania Passes $100 Million Sunshine Bill! What do you think? Please leave a comment: [...]

Comment on April 27th, 2009.

Hi Jeff,

I actually updated the page today due to your question tonight. So, thanks for your question and I hope you find the info useful!

- Dan

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