MI Senate proposal: Solar owners who want to feed into grid may not be able to use their own energy

[mahatmakanejeeves]

Solar owners who want to feed into grid may not be able to use their own energy under Senate proposal

By Emily Lawler | [e-mail]
on August 05, 2015 at 9:25 AM, updated August 05, 2015 at 10:12 AM

LANSING, MI -- Solar industry experts say that Senate legislation overhauling Michigan's energy policy would eliminate the ability of small-scale solar users to use their own renewable energy to offset their utility costs. ... Currently small solar and renewable projects at Michigan homes, businesses and nonprofits are able to connect to the grid of their regulated utilities through a net metering program, which allows customers to offset their electricity costs with their own renewable energy and then potentially sell excess energy back into the grid.

A small but growing number of Michiganders have chosen to do just that. According to a report released by the Michigan Public Service Commission on Tuesday there are now 1,840 customers who use net metering. ... But Senate Bill 438, which changes parts of state energy law as part of a legislative overhaul, would change how the system works. According to Amy Heart, spokesperson for The Alliance for Solar Choice, it would essentially eliminate net metering in Michigan.

"Instead of the homeowner having the ability to have solar on your home and have it reduce your energy at the end of the month... you are no long able to use that energy that you generated on your home," said Heart, whose organization advocates for rooftop solar all over the country. ... Under the proposal, a homeowner with a solar installation would buy all of their electricity at retail rate and then sell all of the energy they produce back to the utility at what's essentially a wholesale rate.

Irene Dimitry, vice president of Business Planning and Development for DTE Energy, said while net metering pilot programs for solar had been successful, it's not a new technology anymore and we shouldn't be subsidizing or incentivizing it.

[djean111]

1. You have to send all of the energy back on the grid?

Whatever this is, I can only hope that battery storage gets faster and cheaper, solar panels get more efficient and cheaper, and then the power companies who are trying to squash solar can stick their grids where the sun does not shine.

This is one of the Kochs' ALEC missions - to attack solar at the state level. Happening here in Florida.

[ladjf]

2. If such a law is legal then it should be made to be illegal.

Michigan has gone to the "Tea Bag Dogs".

[PoliticAverse]

3. If you are selling your electricity to the utility you shouldn't be getting more

than "the wholesale rate". Other electricity consumers shouldn't be subsidizing your solar.

[djean111]

4. On the other hand, your uitility did not have to do anything at all to generate that

electricity. No fossil fuel, no nothing. No cost to them to generate it.

[PoliticAverse]

5. And when they buy electricity that they haven't generated they pay "the wholesale price" for it.

I'm arguing that people with solar panels should be paid the same as any other wholesale power seller to the utility.
Solar panel owners shouldn't be able to use the utility as a free battery.

[djean111]

6. Okay, I can see your point - but this reads like all the electricity produced

must be run through the grid and back again.

[NCjack]

7. The solar power comes online during the period that demand for electricity rises to

power air conditioners or heaters, industries, schools, etc. If the local power company cannot provide all the power with its base generation capacity, it has to buy electricity on the spot market. The rate charged the company can be as much as 2X the company's retail selling price. So, since the home solar generators are saving the company serious money during the day (Prime Time), the home solar owners should be paid a PREMIUM for the power they put on the grid for the company to resell. Perhaps not the rate that an over base load provider gets, but should get positive consideration instead of being screwed.

[JustABozoOnThisBus]

8. I think you are reading it right

Any electricity you produce has to go into the grid at a wholesale price. Any electricity you use has to come from the grid at a retail price.

Michigan has a Republican House, Senate, and Governor. I'm sure the power companies are happy with this arrangement.

[djean111]

9. This will just push people to get off the grid. You would basically be buying your own

electricity, that you generated, at your cost. That is ridiculous.
What's next, sending out inspectors to make sure people are not bypassing the grid? If they get away with this, it sets a bad example for the entire country.

Koch Dream come true - prevent people from using their own electricity, and get to sell it at retail without having had to generate it or buy from third parties.

Surely there will be a revolt, because that is revolting.