Net Metering and Interconnection Update
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Transcript of Net Metering and Interconnection Update
MICHIGAN PUBLIC SERVICE COMMISSION
Net Metering and Interconnection Update
June 25, 2011
Michigan Energy Fair
MICHIGAN PUBLIC SERVICE COMMISSION
Definitions
Net Metering: Customer generated electricity offsets electricity provided by the utility.
Interconnection: Linking the generating facility to the utility’s electric delivery system (grid)
MICHIGAN PUBLIC SERVICE COMMISSION
The Past
– Voluntary
– Low Interest
– Complicated
– Inconsistent
The Current
– Mandated by law
– Awareness
– Net Metering on bill
– Standardized
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Standardized by Size
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Net Metering
• Billed for Net UsageELECTRICITY FROM GRID
(ELECTRICITY SENT TO GRID)
NET USAGE
• Per law signed in October 2008, State government has established a statewide program
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True Net Metering
• ≤ 20 kw generation
• $25 fee is required
• If excess meter is required it will be provided by utility (unless >1M customers)
• CR the full retail rate for all excess kwh
• No interconnection costs
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Net Metering ExampleMonth One
Total Usage 500
Purchased 450
Generated 50
At 9 cents a kWh:
Bill is $40.5
+ per meter charges
(used all that was
generated, did not send any to grid)
Month ThreeTotal Usage
500
Purchased 500
Generated 0
9 cents a kWh = $45
less $13.5 from prior
month credit = $31.5 +
per meter charges
Month TwoTotal Usage 550
Purchased 300
Generated 400
Credit = 150 net usage (sent to utility) * 9 cents = $13.5
Still billed for full value of per meter charges (cr applies to kWh usage only)
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Modified Net Metering
• >20 kW to 150 kW generation
• CR the generation portion of rate
• No standby charges
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Category Three
• Methane Digester
• >150 to 550 kW
• Standby charges applied
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Restrictions of Net Metering
• Limited participation– .5% Category One– .25% Category Two– .25% Category Three
• Limited Generation
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Interconnection
• Category One: 20 kW and under
• Category Two: >20 kW to 150 kW
• Category Three: >150 kW to 550 kW
• Category Four: >550 kW to 2 MW
• Category Five: >2 MW
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Interconnection Fees
Application review
Engineering review Distribution study Distribution Testing & inspection
upgrades
Category 1 $75 $0 $0 $0 $0
Category 2 $100 $0 Actual or maximum approved by commission
Actual or maximum approved by commission
Actual or maximum approved by commission
Category 3 $150 $0 Actual or maximum approved by commission
Actual or maximum approved by commission
Actual or maximum approved by commission
Category 4 $250 Actual or maximum approved by commission
Actual or maximum approved by commission
Actual or maximum approved by commission
Actual or maximum approved by commission
Category 5 $500 Actual or maximum approved by commission
Actual or maximum approved by commission
Actual or maximum approved by commission
Actual or maximum approved by commission
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Update to Net Metering and Interconnection
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Scorecard
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Number of Customers
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
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Installations by Technology
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
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Capacity and No. of Customers
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
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Net Metering Participants
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
System Locations
December 2010
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
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Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
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• Michigan.gov/NetMetering
• Katie Trachsel, CPA
– (517)373-1808