Michigan net metering has been an essential tool for households to save on their energy bills by generating their own solar power. This system allowed solar owners to send excess power to the grid in exchange for credits at retail electricity rates.
However, major state utilities, including DTE Energy, have invested millions lobbying state politicians to weaken Michigan's net metering incentives. With over a decade of experience as a Detroit-based solar energy expert, GreenLancer has been at the forefront of Michigan's solar evolution, making us a trusted authority on DTE net metering policies and their impact.
Understanding Michigan Net Metering’s Move to Distributed Generation
In 2021, Michigan replaced its net metering program with a distributed generation (DG) program, reshaping how solar system owners save on energy bills. This transition, including changes for DTE net metering customers, resulted in lower compensation rates for households exporting excess solar energy to the grid compared to the traditional Michigan net metering structure.
As a result, many homeowners are turning to battery storage systems to optimize their solar energy use and savings. With a battery, you can store surplus solar power instead of sending it to the grid at reduced DG rates. This stored energy can then be used to offset electricity costs during peak demand times or when the sun isn’t shining, helping to maximize the value of your solar investment.
DTE Energy, Michigan’s largest utility, provides electricity to over 2.2 million customers in Detroit, Ann Arbor, Lansing, Pontiac, Grand Rapids, and other cities. With a significant reliance on coal and fossil fuels, DTE has actively supported policy changes that transitioned Michigan's net metering to the current DG program. This shift in DTE net metering programs has reduced compensation for excess solar energy sent to the grid, making it harder for solar customers to achieve substantial savings.
As a result, many Michigan homeowners are exploring home battery storage as a way to maximize their solar energy benefits. Understanding how DTE’s solar policies and Michigan net metering rules impact your solar savings is key to making the most of your investment in clean energy.
How DTE Net Metering Changes Impacts Solar Savings
DTE’s net metering program was once a straightforward way for Michigan homeowners to save on energy costs by generating their own solar power. Under the original net metering program, customers received full retail credit for any excess electricity fed back to the grid, making solar an attractive investment.
However, the less favorable Distributed Generation program has since replaced this program. Now, instead of receiving full retail credit for solar power, customers are compensated at a much lower rate for the excess electricity they produce. This shift has made it harder for new solar customers to achieve the same savings as before unless they also invest in solar energy storage.
While existing DTE net metering customers were initially grandfathered into the more attractive Michigan net metering program for ten years, new applicants must now enroll in the DG program. This significantly reduces the financial benefits of going solar without an energy storage system.
However, with solar batteries, homeowners can dramatically reduce their energy bills. While this solution requires an additional upfront investment, it offers a way to reclaim your savings lost due to the utility’s push for less consumer-friendly policies.
Are you interested in installing a solar battery for your Michigan home? Contact GreenLancer to get started.
DTE Energy Rate Hikes
Electricity in Michigan has become quite expensive. Households are now paying more for electricity, especially during the summer between 3 pm and 7 pm when DTE Energy charges peak energy rates of 22.4 cents per kilowatt hour (kWh). Residents of Detroit, Anny Arbor, and Grand Rapids are experiencing frustration and outrage when opening their summer energy bills.
Recent rate hikes are most apparent during heat waves when Michiganders must crank up their air conditioners to stay cool. Unfortunately, DTE electricity rates are higher than the national average of 16.6 cents per kWh.
Michigan’s Unstable Power Grid
DTE’s aging infrastructure and lack of modernization efforts have left the grid susceptible to extreme weather, resulting in frequent and prolonged outages. Despite rising electricity rates and mounting customer complaints, DTE has failed to prioritize essential upgrades to enhance grid reliability or address concerns affecting Michigan net metering users.
This focus on profits over service improvements has fueled frustration among Michigan residents, who are increasingly dissatisfied with unreliable power, high energy costs, and poor customer support. As a result, more homeowners are turning to solar systems with battery storage or home generators to gain greater energy independence and stability.
DTE's Dirty Fuel Mix
Despite increasing concerns about climate change and air pollution, DTE remains heavily dependent on fossil fuels to generate electricity for its residential and commercial customers. This reliance on dirty energy sources has influenced the elimination of DTE net metering.
Fuel Source From Jan. to Dec. 2023 | Fuel Mix |
Coal | 40% |
Natural Gas | 25.4% |
Nuclear | 22.5% |
Wind Energy | 10.3% |
Solar Power | 0.6% |
Oil | 0.2% |
In comparison, certain utility companies in the Upper Midwest rely far more on renewable energy sources in their fuel mix. Xcel Energy, for instance, uses six times as much solar power and more than twice the wind energy while depending on less than a third of the coal power compared to DTE. This cleaner approach not only supports renewable energy growth but also contrasts with Michigan's net metering policies that previously incentivized solar adoption before being replaced by the less favorable DG program.
Why Battery Storage is Essential to Maximize Solar Savings With DTE
Solar battery storage is key to maximizing savings in Michigan with DTE net metering programs being phased out.
Increases Self-Consumption
By storing excess solar power in batteries, you can use this energy when your solar system isn’t producing—like at night or on cloudy days—instead of relying on expensive electricity from the grid. This approach is especially valuable given the shift away from net metering in Michigan, as it allows you to maximize your solar energy use and reduce the amount of electricity you need to purchase from DTE, leading to substantial savings on your utility bills.
Avoid DTE’s Peak Energy Rates
Solar battery storage becomes even more valuable with DTE Energy's time-of-use (TOU) rates. DTE’s TOU rate structure charges higher rates during peak periods, typically from 3 p.m. to 7 p.m. on weekdays, and lower rates during off-peak times.
By storing solar power generated during the day, you can use this electricity during peak periods when utility rates are highest, minimizing your reliance on the grid and benefiting from lower energy costs. This approach helps you avoid peak rate charges and maximizes the benefits of your solar investment.
Backup Power During Outages
We’ve all experienced the frustration of losing power—whether it’s worrying about food spoiling or pipes freezing during a winter outage. Solar battery storage provides essential backup power during grid outages, ensuring a more reliable energy supply for your home. By relying on your stored solar power during blackouts or disruptions, you can keep your home running smoothly and stay resilient during extreme weather events.
By harnessing clean, renewable energy from the sun, you can significantly reduce your carbon footprint and cut ties with the pollution-heavy power sources that dominate the grid. Plus, with advancements in solar technology and available incentives, switching to solar has never been more accessible or cost-effective. Taking control of your energy production today means you’re contributing to a cleaner, healthier environment for the future.
Trust Michigan’s Solar Experts
Since 2013, GreenLancer has been a leading name in the solar energy industry and is known for delivering exceptional customer service. We are certified installers of the Tesla Powerwall 3 and Franklin WH aPower solar batteries. Our team completes solar system and energy storage installations across the state of Michigan.
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