Solar in Michigan Facing Challenges From Net Metering Changes

New proposals targeting customers could derail solar energy’s future in the state.

2 minute read

October 26, 2018, 1:00 PM PDT

By Camille Fink


Rooftop Solar Panels

CoCreatr / Flickr

Michigan is the latest state dealing with threats to net metering, a policy that allows energy customers with solar panels to sell extra power back to the grid. In Michigan, DTE Energy currently pays full retail price for this surplus power.

But, the company is seeking changes that renewable energy advocates say will slow down solar expansion in the state. It wants to reduce the payment rate by 75 percent. In addition, it is proposing a monthly fee for solar energy customers. “DTE declined to say what the impact of its proposal would be for solar panel owners, but Vote Solar estimates that the proposed changes would mean a homeowner with a 5 kilowatt system loses about $498 per year,” reports Dan Gearino.

Solar is starting to take off in Michigan so these proposed changes could severely hamper its growth. Gearino says Nevada dropped its net-metering rates in 2015 with severe consequences:

Solar growth came to a near-standstill, and major solar installers, including Sunrun and SolarCity, announced they were stopping local operationsclosing offices and cutting hundreds of jobs. The backlash forced the state to reverse course in 2017, and Republican Gov. Brian Sandoval signed a bill restoring net-metering payments.

What is happening in Michigan is occurring in other states, as utility companies respond to what they perceive to be a threat to their bottom lines. “What the discussion lacks, [David] Littell said, is a model policy that both utility groups and clean energy advocates will concede is fair,” adds Gearino.

Wednesday, October 17, 2018 in Inside Climate News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Yellow electric school bus with preteen students exiting.

California Invests Additional $5M in Electric School Buses

The state wants to electrify all of its school bus fleets by 2035.

April 25 - Associated Press

City Hall building in Austin, Texas.

Austin Launches $2M Homelessness Prevention Fund

A new grant program from the city’s Homeless Strategy Office will fund rental assistance and supportive services.

April 25 - Spectrum Local News

Brick school building with mid-sized tree on front lawn.

Alabama School Forestry Initiative Brings Trees to Schoolyards

Trees can improve physical and mental health for students and commnity members.

April 25 - Governing