Renewable energy in Michigan is primarily used by electric providers for renewable portfolio standard compliance, to provide supply for voluntary green pricing programs, for on-site customer use through a distributed generation program, or for sale to an electric provider by a qualifying facility under the Public Utility Regulatory Policies Act of 1978.
Public Act 235 establishes a renewable energy standard of 50% by 2030 and 60% by 2035. The RPS applies to all retail electric providers including, investor-owned utilities, cooperative utilities, municipal utilities, and alternative electric suppliers. The 50% Renewable REC Portfolio will be demonstrated by using RECs. One REC is equal to one megawatt-hour of renewable energy. Types of renewable energy include electricity generated from wind turbines, solar photovoltaic panels, biomass, waste-to-energy, and hydroelectric. The RPS law provides "incentive credits" for renewable energy with certain characteristics including on-peak renewable energy generation (not applicable to wind generation) and off-peak renewable generation stored in a battery and used during on-peak hours. An electric provider may substitute a limited number of energy waste reduction credits for RECs.
The Michigan Renewable Energy Certification System (MIRECS) is Michigan's REC tracking and certification system. Renewable electricity generation is entered into MIRECS and RECs are created. At the end of each year, electric providers show that they have achieved the Renewable REC Portfolio by moving RECs, incentive credits, and, if applicable, energy waste reduction credits, into an annual retirement folder which is then submitted to the MPSC for review.
Nearly all of the renewable energy used to meet the requirements of Michigan's RPS is generated in Michigan. Since the first RPS law was enacted in 2008, wind has been the resource most commonly added to fulfill the needed supply of renewable energy, but solar has been growing substantially due to lower prices. Once a year the MPSC issues an annual report.
PURPA is a federal law enacted in 1978 in reaction to an energy crisis and implemented by state public service commissions for rate-regulated electric utilities. PURPA's goals are to encourage competition, conservation, reliability and efficiency in generating and delivering electricity.
2016 PA 342, Sec. 61 directs electric providers to offer customers the opportunity to participate in a voluntary green pricing program. Electric providers whose rates are regulated by the MPSC must have their programs approved by the Commission.
