People who have solar panels on their homes may pay very low energy bills, even selling energy back to the power company. | Stock Photo
People who have solar panels on their homes may pay very low energy bills, even selling energy back to the power company. | Stock Photo
According to Bridge Michigan, Michigan utilities may soon begin limiting the ability of owners of rooftop solar panels to sell their excess power back to the company, removing a major financial incentive for homeowners to invest in solar energy.
Investors in rooftop solar panels often choose solar energy not only for environmental reasons, but for economic reasons as well. Investing in a rooftop solar setup currently requires large upfront costs, upwards of $10,000, but property owners can recoup that cost through significant energy savings and by selling their unused excess solar energy back to the "grid."
“It makes good economic sense,” said Bert Seyfarth, a Consumers Energy customer who has solar panels installed on the roof of his East Lansing home. Seyfarth said that the excess energy he sells back nearly covers the costs of his energy bills. Seyfarth says that he is trying for a similar setup for a property he owns in Glen Arbor.
Sen. Ed McBroom
| #MiSenateGOP
However, things may soon be changing for customers of Michigan investor-owned utilities.
Under current state law, utilities are only required to buy back renewable energy until the sum of that energy reaches a cap of 1% of a utility’s average peak demand. For installations that produce small quantities of energy, including residential solar arrays, that number actually goes down to .5%
Utilities across Michigan are beginning to reach those caps.
Consumers Energy reached the cap this fall, and Upper Peninsula Power Co. (UPPCO) is about to reach the cap, despite actually raising it to 2% as part of a settlement last year. Utilities in other territories report similar circumstances.
Sen. Ed McBroom (R-Vulcan) has introduced legislation to lift the current cap, but it has currently stalled in committee and is unlikely to be finished before the end of the legislative session.
Solar energy advocates warn that the industry, which has seen steady growth in recent years, may soon be heading for a sudden drop. As looming cap limits cause uncertainty about the economic benefits of solar energy, solar panel installation companies are reporting a slowdown in business as demand drops sharply.
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