Michigan Announces 37 Percent Growth in Distributed Energy Program Last Year

Michigan’s distributed energy program experienced a 37 percent surge in participation in 2021 with 14,262 customers and 14,446 installations, according to the Michigan Public Service Commission’s annual Distributed Generation report. In this program, the customers generate their own electricity to reduce their electricity bill and reduce their dependence on the utility companies. Generation capacity from these installations rose by 33.7 megawatts as compared to previous year and takes the privilege to have DG installation in every Michigan County. The new program gives an advantage to use as much of the energy they produce on-site as possible as it allows outflow generation at a lower rate.

The state has allowed the utilities to participate in the program at 1 percent of their five-year average peak load, with half of this amount allocated to smaller residential sized systems, and the other half for the larger projects. Two Michigan utilities have agreed to allow enrollments above the 1 percent limit.

The Category-1 DG project included 20 kilowatt or smaller projects which accounts for 76.8 percent of the total program installing capacity.  Ninety one percent of total DG program capacity is handled by Consumer Energy and DTE Electric with 27.3 megawatt and 14.8 megawatt power, respectively. The overall installation includes 97 percent solar projects and few wind turbines, hydroelectric generation and methane digesters. The Category-2 DG projects consisted of 20 kilowatt to 150 kilowatt in which Consumer Energy and DTE Electric had 18 megawatt and 19.9 megawatt respectively.

The commission initiated the MI Power Grid initiative in Oct. 2019 to maximize the benefits of the transition to clean distributed energy resources for Michigan residents and businesses. The commission is evaluating DG rate design elements as part of a study conducted with continued evaluation of DG related issues. The technologies include behind the meter and community solar, energy storage, and microgrids.