Michigan Net Metering
Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility, allowing customers to offset the cost of the power they draw from the utility with credits they earn on their own production. If your system produces more energy than you need, the excess power is sold to the grid, which you see as a credit on your power bill. Strong net metering laws are an asset to Michigan residents, smoothing the way to get a solar system connected to the public grid.
Michigan Interconnection Standards
The state’s standards for connecting private solar power systems to the grid are clear and simple statewide. This makes net metering more effective.
Michigan Performance-Based Incentives (PBI)
Michigan offers PBIs, which are incentives based on the actual power your system generates. The state calls them Solar Power Performance Payments. You get paid based on the actual kilowatt-hours (kWh) or BTUs generated by your renewal-energy system. The power produced is credited as Solar Renewable Energy Credits (SRECs), the value of which fluctuates by the law of supply and demand and by location.
Last but Not Least: Federal Tax Credit
In addition to these many incentives in Michigan, of course you also get the hefty tax credit from the Federal government. The solar Investment Tax Credit (ITC) is worth 26 percent of the system cost, and will be deducted from your Federal income tax. The credit goes to the owner of the system, so be sure to buy yours with cash or a loan. If you lease a system, then the incentives go to the third-party owner.