Michigan Solar Rebates and Incentives

Michigan Rebates and Incentives Summary

Michigan

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. This petroleum-driven economy has faced significant challenges. Motor City was hit hard by the recession, and the whole state has been trying to reinvent itself and encourage industry and individuals to invest in the state’s future. Renewable energy has been central to this reinvention, and even General Motors and Ford have adopted solar energy.

In 2008, Michigan passed its Renewable Energy Standards (RES). Under the RES, all of Michigan’s utilities must source at least 10 percent of their energy from renewable sources by 2015. The state’s legislature has been debating how to amend the RES for 2016 and beyond. Central to the debate is whether to lift the mandatory 10 percent renewable energy mandate and changing the net metering law.

Solar particularly benefited from the RES, being the fastest growing segment of the economy in the state during the last decade. Michigan ranks thirty-second in the nation for solar capacity, but installations were up by 33% in 2014.

The majority of Michigan’s electricity comes from coal-fired plants and nuclear power. Michigan also has substantial natural gas reserves, and this fossil fuel accounts for more energy usage than any other single source. Although Michigan is a northern state and has harsh winters, it still receives enough sunlight to warrant solar. 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.

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. Customers are not entitled to reimbursement of any excess production until the customer chooses to leave the utility. Customers may make reimbursement arrangements directly with the utility.

In 2015, the state authorized the first community solar installation, allowing customers to purchase half kW blocks and receive credits based on a value of solar model for 25 years. The current total capacity of the program is 10MW.

Applicants must sign a standard interconnection agreement with their utility to be eligible for net metering. This is a popular program, growing exponentially; as of the end of 2014, over 1,800 customers participated, producing over 14,000 kW.

Michigan Solar Power Financial Incentives

Financial Incentives


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USDA - Rural Energy for America Program (REAP) Grants

US

Financial Incentive

Grant Program

04/09/2003

08/25/2015

Tribal Energy Program Grant

US

Financial Incentive

Grant Program

05/01/2003

07/31/2015

Renewable Energy Program Grants

MI

Financial Incentive

Grant Program

04/22/2003

07/27/2015

Energy Revolving Loan Fund

MI

Financial Incentive

Loan Program

03/03/2011

07/23/2015

Energy Efficiency Grants

MI

Financial Incentive

Grant Program

11/07/2014

07/23/2015

Michigan Saves - Home Energy Loan Program

MI

Financial Incentive

Loan Program

02/15/2011

07/20/2015

Interconnection Standards

MI

Regulatory Policy

Interconnection

02/12/2004

07/20/2015

City of Ann Arbor - Green Power Purchasing

MI

Regulatory Policy

Green Power Purchasing

11/02/2006

07/20/2015

Fuel Mix and Emissions Disclosure

MI

Regulatory Policy

Generation Disclosure

05/06/2001

07/20/2015

Building Energy Code

MI

Regulatory Policy

Building Energy Code

07/27/2006

07/16/2015

Renewable Energy Renaissance Zones

MI

Financial Incentive

Industry Recruitment/Support

01/15/2009

07/16/2015

Consumers Energy (Electric) - Residential Energy Efficiency Program

MI

Financial Incentive

Rebate Program

08/10/2009

07/16/2015

Consumers Energy (Electric) - Commercial Energy Efficiency Program

MI

Financial Incentive

Rebate Program

08/19/2010

07/16/2015

Biomass Gasification and Methane Digester Property Tax Exemption

MI

Financial Incentive

Property Tax Incentive

02/03/2009

07/16/2015

Fannie Mae Green Initiative- Loan Program

US

Financial Incentive

Loan Program

05/28/2015

07/13/2015

Solar Heating Contractor Licensing

MI

Regulatory Policy

Solar/Wind Contractor Licensing

01/01/2000

07/09/2015

City of Grand Rapids - Green Power Purchasing Policy

MI

Regulatory Policy

Green Power Purchasing

12/14/2007

07/09/2015

City of Grand Rapids - Green Building Requirements for Municipal Buildings

MI

Regulatory Policy

Energy Standards for Public Buildings

01/24/2006

07/09/2015

Nonrefundable Business Activity Tax Credit

MI

Financial Incentive

Industry Recruitment/Support

01/14/2003

07/09/2015

Renewable Energy Standard

MI

Regulatory Policy

Renewables Portfolio Standard

10/22/2008

06/25/2015

City of Lansing - Green Power Purchasing Policy

MI

Regulatory Policy

Green Power Purchasing

11/01/2007

06/25/2015

Michigan Saves - Business Energy Financing

MI

Financial Incentive

Loan Program

02/15/2011

06/25/2015

Energy-Efficient Mortgages

US

Financial Incentive

Loan Program

03/21/2002

06/24/2015

City of Ann Arbor - PACE Financing

MI

Financial Incentive

PACE Financing

10/13/2011

06/24/2015

Energy Goals and Standards for Federal Government

US

Regulatory Policy

Energy Standards for Public Buildings

06/19/2006

06/21/2015

Coldwater Board of Public Utilities - Commercial & Industrial Energy Efficiency Rebate Program

MI

Financial Incentive

Rebate Program

10/27/2010

06/01/2015

Coldwater Board of Public Utilities - Residential Energy Efficiency Rebate Program

MI

Financial Incentive

Rebate Program

08/02/2010

06/01/2015

USDA - Biorefinery Assistance Program

US

Financial Incentive

Loan Program

10/04/2012

05/22/2015

Federal Appliance Standards

US

Regulatory Policy

Appliance/Equipment Efficiency Standards

06/30/2006

05/21/2015

Local Option - Property Assessed Clean Energy

MI

Financial Incentive

PACE Financing

04/05/2010

05/19/2015

Energy Efficiency in State Buildings

MI

Regulatory Policy

Energy Standards for Public Buildings

07/24/2006

05/19/2015

City of Detroit - SmartBuildings Detroit Green Fund Loan

MI

Financial Incentive

Loan Program

10/26/2011

05/19/2015

Lansing Board of Water & Light - Hometown Energy Savers Commercial Rebates

MI

Financial Incentive

Rebate Program

02/02/2010

05/18/2015

Refundable Payroll Tax Credit

MI

Financial Incentive

Industry Recruitment/Support

01/14/2003

05/18/2015

Net Metering

MI

Regulatory Policy

Net Metering

05/18/2015

05/18/2015

Residential Renewable Energy Tax Credit

US

Financial Incentive

Personal Tax Credit

08/10/2005

05/13/2015

Business Energy Investment Tax Credit (ITC)

US

Financial Incentive

Corporate Tax Credit

03/15/2002

05/13/2015

Lean and Green Michigan PACE

MI

Financial Incentive

PACE Financing

09/08/2014

05/11/2015

Consumers Energy - Experimental Advanced Renewable Program

MI

Financial Incentive

Feed-in Tariff

05/01/2015

05/01/2015

Residential Energy Conservation Subsidy Exclusion (Corporate)

US

Financial Incentive

Corporate Tax Exemption

03/05/2002

04/24/2015

Clean Renewable Energy Bonds (CREBs)

US

Financial Incentive

Loan Program

05/02/2006

04/16/2015

Efficiency United (Gas) - Commercial Efficiency Program

MI

Financial Incentive

Rebate Program

12/04/2009

04/15/2015

Efficiency United (Gas) - Residential Efficiency Program

MI

Financial Incentive

Rebate Program

12/08/2009

04/14/2015

Great Lakes Energy - Residential Energy Efficiency Rebate Program

MI

Financial Incentive

Rebate Program

08/05/2009

04/14/2015

Energy Smart - Commercial and Industrial Energy Efficiency Rebate Program (20 Municipalities)

MI

Financial Incentive

Rebate Program

02/02/2010

04/14/2015

DTE Energy - Commercial New Construction Energy Efficiency Program

MI

Financial Incentive

Rebate Program

04/08/2010

04/14/2015

Consumers Energy (Gas) - Commercial Energy Efficiency Program

MI

Financial Incentive

Rebate Program

08/10/2009

04/14/2015

Lansing Board of Water & Light - Hometown Energy Savers Residential Rebates

MI

Financial Incentive

Rebate Program

02/02/2010

04/14/2015

Energy Optimization (Electric) - Residential Efficiency Program

MI

Financial Incentive

Rebate Program

12/04/2009

04/14/2015

Consumers Energy (Gas) - Residential Energy Efficiency Program

MI

Financial Incentive

Rebate Program

08/19/2010

04/14/2015

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