Michigan to replace net metering program with avoided-cost tariff

Energy News Network: Michigan utility customers who put surplus electricity they generate back onto the power grid will be paid a lower, avoided-cost rate after June 1.

The Michigan Public Service Commission (MPSC) issued an order Wednesday replacing the state’s net metering policy with an avoided-cost tariff based on how much utilities would pay to build the same amount of generation themselves.

Liesl Eichler Clark, president of the Michigan Energy Innovation Business Council, said the decision will create uncertainty for customers and installers.

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