11/14/2022 | Press release | Distributed by Public on 11/14/2022 14:41
Media contact:Matt Helms 517-284-8300
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Continuing years of increased growth, participation in Michigan's distributed energy program rose by 37% in 2021, according to the Michigan Public Service Commission's annual distributed generation (DG) report.
Participation has grown every year since 2006, and the MPSC's 2021 Distributed Generation Report released today found that the program added 3,709 new customers, with the total number of customers in the program at 14,262, with 14,446 DG installations. That's up from 10,553 customers and 10,718 installations in 2020.
The total electric generation capacity of these installations was 124,749 kilowatts (kW) at the end of 2021, an increase of 33,760 kW from the year before. There are DG installations in every Michigan county.
In Michigan's distributed generation program, customers generate their own electricity, mostly through solar projects, to lower their electric bills by reducing the amount of energy they buy from their utility. Under state law, utilities may limit participation in the program at 1% of their five-year average peak electricity load, with half of this amount allocated to smaller, residential-sized systems, and the other half for larger projects. Two Michigan utilities have agreed to allow enrollments above the 1% limit: Consumers Energy Co. doubled its program size, and Upper Peninsula Power Co. (UPPCO) agreed in a settlement to triple its size to 3%.
In addition to Consumers and UPPCO, the two newest Michigan utilities with Commission-approved DG tariffs are, Alpena Power Co. (effective Jan. 1, 2022) and Northern States Power Co. (effective Jan. 1, 2023), along with DTE Electric Co., Indiana Michigan Power Co (I&M) and Upper Michigan Energy Resources Corp.
Among the report's highlights:
Michigan's 2016 update of its energy law required the MPSC to phase out the former net metering program and replace it with a new DG program. The report notes that under the DG program, which credits outflow generation at a lower rate, it is advantageous for customers to use as much of the energy they produce on-site as possible.
Once a utility's DG program is in effect, no new customers can join the net metering program, but current net metering customers can continue under that program's guidelines for 10 years from the day they enrolled. The net metering program is referred to as the legacy net metering program.
With the lower outflow credits and the declining costs of battery storage, DG program participants are increasingly pairing their generation with battery storage. At the end of 2021, electric providers reported 2,304 DG participants with battery storage installations for a total battery storage capacity of 12,941 kW.
The DG report also notes that:
For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the Commission on Facebook, Twitter or LinkedIn.
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