Michigan Rebates and Incentives Summary
Michigan, more exactly Detroit, is known as motor city and rock city. This history conjures images of black leather, KISS and an awful lot of gasoline. Former Michiganders have complained about how wide the streets are, how little public transportation exists and how cold it gets in the winter. But the state is working to rebrand itself. While not pulling away from its history as a rock and roll heartland, Michigan is trying to diversify its industries, and one of the most attractive industries is the renewable energy industry. It’s also offering incentives for home and property owners to go solar to help foster the industry and meet the state’s renewable energy standard (RES).
Under the RES, all of Michigan’s utilities must source at least 10 percent of their energy from renewable sources by 2015. And the state has its work cut out for it. By late 2011, only 4 percent of the state's energy came from renewable sources. State leaders are taking the issue seriously. They introduced a 2012 ballott measure that could more than double the requirement to 25 percent by 2025.
Hopefully the performance-based incentives, tax breaks, net-metering law and significant rebates offered by the state’s many utilities to meet their RES requirements will help Michiganders adopt solar and other renewables.
Currently, Michigan's energy mix is — well — mixed. The state’s major electric producers are coal-fired power plants, which provide three-fifths of its power needs; three nuclear power plants supply an additional quarter of its energy. But renewable energy remains a small part of Michigan’s energy market.
The majority of Michigan gets about four hours of direct sunlight per square meter per day, which is less than southern states but enough to warrant solar. The state also has decent wind for turbine generation, though Michigan’s wind capacity is significantly lower than states to its west. As a northern state with cold winters, Michigan also incentivizes insulation and energy efficiency investment for homes and buildings to help reduce their energy use.
The state’s industrial history and position on the Great Lakes make it an ideal location for developing new industries and it could be a great location for wind and solar manufacturing. To that end, Michigan offers incentives to attract renewable industries. Renewable Energy Renaissance Zones provide businesses significant tax incentives to develop renewable manufacturing facilities in the state. Despite such efforts, the state has not yet established itself as a green energy manufacturing capital and faces stiff competition from other states like California, Colorado and Ohio.
Refundable photovoltaic manufacturing tax credit
| Program Type | Industry recruitment / support |
|---|---|
| Technologies | Photovoltaics |
| Amount | 25 percent of the capital costs for building a qualifying PV manufacturing facility. Usually pays up to $15 million, but one certificate can be up to $25 million. Maximum benefit issued over three years can't exceed $75 million. |
| Required Documentation | Credit typically taken over two years in equal installments. Minimum capital investment and job creation requirements apply. |
| Official Web Site | http://www.michiganadvantage.org/Solar-Energy/ |
Michigan is trying to leverage is position as a historic manufacturing and research and development hub by entising solar panel manufacturers into existing and empty facilities left behind by the auto industry.
The law allows PV manufacturers to claim a tax credit against the Michigan Business Tax.
Michigan Net Metering
| Program Type | Net Metering |
|---|---|
| Technologies | Photovoltiacs, other renewables |
| Amount | Retail rate |
| Required Documentation | Interconnection agreement with utility and approval |
| Official Web Site | http://www.michigan.gov/netmetering |
Michigan’s net-metering law allows for renewable system owners to net meter systems up to 150 kW in size. Under the law, monthly net excess generation of systems up to 20 kW is credited toward a customer’s retail rate or time-of-use rate toward the customer’s future electric consumption for an indefinite period.
The law does not require customers to be reimbursed for excess production on any regular basis. Customers may reach an agreement with their utility to be reimbursed for such generation. But if a customer chooses to leave the utility and opt for another utility or go off-grid, the utility must refund the customer the remaining credit amount.
At present, the net-metering law only applies to alternative electric suppliers and rate-regulated utilities, which includes investor-owned utilities. The law includes net metering for a broad swath of renewables including solar, anaerobic digester gas, wind, biomass, geothermal, landfill gas, municipal solid waste and hydroelectric.
Applicants must sign a standard interconnection agreement with their utility to be eligible for net metering.
Michigan Solar Power Financial Incentives
Financial Incentives
Industry Recruitment/Support
- Nonrefundable Business Activity Tax Credit
- Energy Revolving Loan Fund -- Clean Energy advanced manufacturing
- Refundable Photovltaic Manufacturing Tax credit
- Refundable Payroll Tax Credit
- Renewable Energy Renaissance Zones
Personal Tax Credit
Property Tax Exemption
- Alternative Energy Personal Property Tax Exemption
- Biomass Gasification and Methane Digester Property Tax Exemption
State Grant Program
Local Grant Program
• City of Detroit - SmartBuildings Detroit Grant Program
Local Loan Program
State Loan Program
- Energy Revolving Loan Fund - Farm Energy
- Energy Revolving Loan Fund - Passive Solar
- Energy Revolving Loan Fund - Public Entities
- Michigan Saves - Commercial Energy Loan Program
- Michigan Saves - Home Energy Loan Program
PACE Financing
Performance-Based Incentive
Utility Rebate Program
- Efficiency United (Gas) - Commercial Efficiency Program
- Efficiency United (Gas) - Home Performance Program
- Efficiency United (Gas) - Residential Efficiency Program
- Energy Smart - Commercial and Industrial Energy Efficiency Rebate Program (20 Municipalities)
- Energy Smart - Residential Energy Efficiency Rebate Program (20 Municipalities)
- Coldwater Board of Public Utilities - Commercial & Industrial Lighting Rebate Program
- Coldwater Board of Public Utilities - Residential Energy Efficiency Rebate Program
- Consumers Energy (Electric) - Commercial Energy Efficiency Program
- Consumers Energy (Electric) - Residential Energy Efficiency Program
- Consumers Energy (Gas) - Commercial Energy Efficiency Program
- Consumers Energy (Gas) - Residential Energy Efficiency Program
- Detroit Public Lighting Department - Commercial and Industrial Energy Wise Program
- Detroit Public Lighting Department - Residential Energy Wise Program
- DTE Energy (Electric) - Commercial and Industrial Energy Efficiency Program
- DTE Energy (Electric) - Residential Energy Efficiency Program
- DTE Energy (Gas) - Commercial and Industrial Energy Efficiency Program
- DTE Energy (Gas) - Residential Energy Efficiency Program
- DTE Energy - Commercial New Construction Energy Efficiency Program
- DTE Energy - Residential New Construction Energy Efficiency Program
- Energy Optimization (Electric) - Commercial Efficiency Program
- Energy Optimization (Electric) - Residential Efficiency Program
- Great Lakes Energy - Residential Energy Efficiency Rebate Program
- Lansing Board of Water & Light - Hometown Energy Savers Commercial Rebates
- Lansing Board of Water & Light - Hometown Energy Savers Residential Rebates
Rules, Regulations & Policies
Building Energy Code
Energy Standards for Public Buildings
- Energy Efficiency in State Buildings
- Grand Rapids - Green Building Requirements for Municipal Buildings
Generation Disclosure
Green Power Purchasing/Aggregation
- Ann Arbor - Green Power Purchasing
- Grand Rapids - Green Power Purchasing Policy
- Lansing - Green Power Purchasing Policy
Interconnection
Net Metering
Public Benefits Fund
Renewables Portfolio Standard
Solar/Wind Permitting Standards
Related Programs & Initiatives
Alternative Fuels and Advanced Vehicles Data Center
The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.
Weatherization Assistance Program
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.
