net metering and interconnection update
DESCRIPTION
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. - PowerPoint PPT PresentationTRANSCRIPT
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
MICHIGAN PUBLIC SERVICE COMMISSION
Standardized by Size
MICHIGAN PUBLIC SERVICE COMMISSION
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
MICHIGAN PUBLIC SERVICE COMMISSION
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
MICHIGAN PUBLIC SERVICE COMMISSION
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)
MICHIGAN PUBLIC SERVICE COMMISSION
Modified Net Metering
• >20 kW to 150 kW generation
• CR the generation portion of rate
• No standby charges
MICHIGAN PUBLIC SERVICE COMMISSION
Category Three
• Methane Digester
• >150 to 550 kW
• Standby charges applied
MICHIGAN PUBLIC SERVICE COMMISSION
Restrictions of Net Metering
• Limited participation– .5% Category One– .25% Category Two– .25% Category Three
• Limited Generation
MICHIGAN PUBLIC SERVICE COMMISSION
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
MICHIGAN PUBLIC SERVICE COMMISSION
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
MICHIGAN PUBLIC SERVICE COMMISSION
Update to Net Metering and Interconnection
MICHIGAN PUBLIC SERVICE COMMISSION
Scorecard
MICHIGAN PUBLIC SERVICE COMMISSION
Number of Customers
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
MICHIGAN PUBLIC SERVICE COMMISSION
Installations by Technology
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
MICHIGAN PUBLIC SERVICE COMMISSION
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
MICHIGAN PUBLIC SERVICE COMMISSION
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
res
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar
• Tax Credit– Renewable Energy: Biomass
• 30% Tax Credit– Renewable Energy: Multiple
• Personal Exemption
MICHIGAN PUBLIC SERVICE COMMISSION
• Michigan.gov/NetMetering
• Katie Trachsel, CPA
– (517)373-1808