Consumers Energy - Experimental Advanced Renewable Program
Last DSIRE Review: 05/09/2013
Program Overview:
| State: | Michigan |
| Incentive Type: | Performance-Based Incentive |
| Eligible Renewable/Other Technologies: | Photovoltaics |
| Applicable Sectors: | Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Multi-Family Residential, Institutional |
| Amount: | Non-Residential, August - September 2011: $0.229/kWh Residential, December 2011: $0.259/kWh Non-Residential, February - March 2012: $0.229/kWh Residential, April - May 2012: $0.259/kWh Residential, June - July 2012: $0.249/kWh Non-Residential, August - October 2012: $0.219/kWh Residential, August - October 2012: $0.249/kWh Residential, January - February 2013: $0.249/kWh Non-Residential, April - May 2013: $0.209/kWh Residential, April - May 2013: $0.209/kWhSubsequent Phases: $0.200-$0.259/kWh |
| Terms: | Fixed rate contract for up to 15 years; participants pay system access charge ($6 - $50 per month) to cover additional metering costs. |
| Eligible System Size: | Residential: 1 kW - 20 kW DC Non-residential: 1 kW - 150 kW DC Capacity may not exceed the size necessary to produce the amount of energy consumed on site |
| Installation Requirements: | Must sign Generator Interconnection and Operating Agreement |
| Ownership of Renewable Energy Credits: | Utility owns RECs |
| Start Date: | 08/27/2009 |
| Expiration Date: | 08/31/2029 |
| Web Site: | http://www.consumersenergy.com/content.aspx?id=4844 |
Summary:
Note: Phases 11 and 12 are now closed. Phase 13 will open to residential customers on July 1, 2013. Check the program web site for application materials and information on future solicitations.
The Experimental Advanced Renewable Energy Program (EARP) offers Consumers Energy residential and non-residential customers a buy-back tariff program for electricity produced by solar photovoltaic (PV) systems. The pilot version of the program began in 2009 and closed in December 2010, but an expanded version of the program has reopened beginning in August 2011. Owners of residential systems from 1-20 kilowatt (kW) and non-residential systems from 1-150 kW are eligible to participate in the program. Residential customers must receive electric service on tariff rate RS or RT in order to be eligible for the program. Non-residential customers on tariff rates RS, RT, GS, GSD, GP, and GPD are eligible for the program. The expanded program is capped at 3,000 kW of capacity, with 1,500 kW for residential systems and 1,500 kW for non-residential systems. Contracts will be awarded in phases, with 125 kW available each quarter for residential customers, and 250 kW available for non-residential customers every six months.
It is important to note that this is not a net metering program and program participants are not eligible for net metering. Under the program, Consumers Energy will purchase all of the electricity produced by the system through a fixed-rate contract of up to 15 years. Contracts will be 15 years in length, but may not have a termination date of later than August 31, 2029. Electricity production is metered separately from the customer's existing electricity source (i.e., the grid). Participants are assessed a monthly System Access Charge equivalent to the existing distribution account used to qualify for the program to cover metering costs.* Systems with battery back-up or any other type of energy storage capability are not eligible to participate in this program. In order to be eligible for the program, solar equipment must be manufactured in Michigan or constructed by a Michigan workforce (detailed requirements are available on the program web site). The solicitation phases and purchase rates are as follows:
Solar systems that receive the residential tariff rate may not be located on property that is used for commercial, governmental, or non-profit purposes. Consumers Energy will only credit the Electric Account Holder; a third party cannot receive credit for the production of an EARP system. However, long term leases of the generating equipment are permitted. Consumers Energy will credit the Electric Account Holder. The applicant must be a Consumers Energy customer on one of the qualifying electricity rates and must own the generating system. If the generation system is located on property that is not owned by the applicant, the applicant must have a lease or other instrument that permits them to construct, own, and operate the system throughout the term of the contract. Systems installed on newly constructed buildings are eligible for this program as long as the applicant will receive electric service from the utility at that site, or an adjacent site.
* The System Access Charge for the EARP is set at $6 per month for tariff rates RS and RT; $15 per month for tariff rate GS; $25 per month for tariff rates GSD and GP; and may not exceed $50 per month for other eligible customers (i.e., tariff rate GPD).
The Experimental Advanced Renewable Energy Program (EARP) offers Consumers Energy residential and non-residential customers a buy-back tariff program for electricity produced by solar photovoltaic (PV) systems. The pilot version of the program began in 2009 and closed in December 2010, but an expanded version of the program has reopened beginning in August 2011. Owners of residential systems from 1-20 kilowatt (kW) and non-residential systems from 1-150 kW are eligible to participate in the program. Residential customers must receive electric service on tariff rate RS or RT in order to be eligible for the program. Non-residential customers on tariff rates RS, RT, GS, GSD, GP, and GPD are eligible for the program. The expanded program is capped at 3,000 kW of capacity, with 1,500 kW for residential systems and 1,500 kW for non-residential systems. Contracts will be awarded in phases, with 125 kW available each quarter for residential customers, and 250 kW available for non-residential customers every six months.
It is important to note that this is not a net metering program and program participants are not eligible for net metering. Under the program, Consumers Energy will purchase all of the electricity produced by the system through a fixed-rate contract of up to 15 years. Contracts will be 15 years in length, but may not have a termination date of later than August 31, 2029. Electricity production is metered separately from the customer's existing electricity source (i.e., the grid). Participants are assessed a monthly System Access Charge equivalent to the existing distribution account used to qualify for the program to cover metering costs.* Systems with battery back-up or any other type of energy storage capability are not eligible to participate in this program. In order to be eligible for the program, solar equipment must be manufactured in Michigan or constructed by a Michigan workforce (detailed requirements are available on the program web site). The solicitation phases and purchase rates are as follows:
| Phase | Year | Quarter | Sector | Solicitation Open | Due Date | Firm-Offer Price ($/kWh) |
|---|---|---|---|---|---|---|
| 3 | 2011 | 4 | Non-Residential | 08/26/2011 | 09/28/2011 | $0.229 |
| 4 | 2012 | 1 | Residential | 12/01/2011 | 01/12/2012 | $0.259 |
| 5 | 2012 | 2 | Non-Residential | 02/27/2012 | 03/29/2012 | $0.229 |
| 6 | 2012 | 2 | Residential | 04/03/2012 | 05/03/2012 | $0.259 |
| 7 | 2012 | 3 | Residential | 06/04/2012 | 07/05/2012 | $0.249 |
| 8 | 2012 | 4 | Non-Residential | 08/29/2012 | 10/10/2012 | $0.219 |
| 9 | 2012 | 4 | Residential | 08/29/2012 | 10/10/2012 | $0.249 |
| 10 | 2013 | 1 | Residential | 01/02/2013 | 02/06/2013 | $0.249 |
| 11 | 2013 | 2 | Non-Residential | 04/01/2013 | 05/08/2013 | $0.209 |
| 12 | 2013 | 2 | Residential | 04/01/2013 | 05/08/2013 | $0.209 |
| 13 | 2013 | 3 | Residential | 07/01/2013 | 08/07/2013 | TBD |
| 14 | 2013 | 4 | Non-Residential | TBD | TBD | TBD |
| 15 | 2013 | 4 | Residential | TBD | TBD | TBD |
* The System Access Charge for the EARP is set at $6 per month for tariff rates RS and RT; $15 per month for tariff rate GS; $25 per month for tariff rates GSD and GP; and may not exceed $50 per month for other eligible customers (i.e., tariff rate GPD).
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