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April 26, 2018

Michigan to replace net metering program with avoided-cost tariff

  • Government
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  • Energy

Energy News Network – Michigan utility customers who put surplus electricity they generate back onto the power grid will be paid a lower, avoided-cost rate after June 1.

The Michigan Public Service Commission (MPSC) issued an order Wednesday replacing the state’s net metering policy with an avoided-cost tariff based on how much utilities would pay to build the same amount of generation themselves.

Liesl Eichler Clark, president of the Michigan Energy Innovation Business Council, said the decision will create uncertainty for customers and installers.

“I see this as complicated, unfair and costly to the industry,” Eichler Clark said, noting that the new rate will vary depending on the local utility.

Read more at Energy News Network.

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