Can You Really Sell Power Back to Consumers Energy Company? SURE!
August 28, 2011
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What's new under the sun?
It's called the Experimental Advanced Renewable Program (EARP).
Beginning in September 2011, Consumers Energy Company customers that generate electricity using solar photovoltaic systems and want to sell it back to the utility will be able to do so.
Consumers recently announced the completion of 102 projects contracted to provide approximately 2,000 kilowatts of solar generated capacity to the Company under the first 2 phases of the Experimental Advanced Renewable Program (EARP) pilot.
On July 26, 2011, the Michigan Public Service Commission approved an expansion of the EARP.
The expanded EARP is part of the Amended Renewable Energy Plan prepared by Consumers Energy in accordance with Public Act 295 of 2008.
This Program is limited to 3,000 kilowatts (kW) of capacity, with 1,500 kW reserved for residential systems and 1,500 kW reserved for non-residential systems.
Contracts issued under this Program will be awarded over a three year period beginning in the fourth quarter 2011 for non-residential customers and first quarter 2012 for residential customers.
During each calendar quarter, Consumers Energy will issue a notice on its web site and to various industry groups that it is soliciting applications for participation in each phase of the expanded EARP. Consumers Energy anticipates issuing the solicitation notice approximately 30 days prior to the application Due Date for each phase and will announce the:
Amount of capacity to be awarded in each phase;
Eligibility requirements associated with each phase;
Price to be paid for energy delivered under contracts to be awarded in each phase;
Address to which each application is to be delivered;
Anticipated schedule for awarding contracts and installing the contracted systems in each phase;
Time and location for any necessary random selection process to be conducted for each phase;
Each phase will be limited to either residential or non-residential customers and multiple phases may be allocated in the same calendar quarter.
To qualify for participation, the solar photovoltaic system must be owned or leased by a Consumers Energy customer account holder and must be installed on the premises of the existing account or on a contiguous adjacent property owned or leased by the account holder.
NOTE: To be eligible, a Consumers Energy account holder must have a satisfactory payment history on their existing Consumers Energy account for the 12 months prior to the application Due Date.
Under the Program, contract participants will be required to supply evidence of financing, equipment purchase or lease, or an otherwise binding obligation to purchase or lease and install the solar PV system within a specified number of days, not to be less than 30 business days, of notice of provisional award.
Contract participants will be required to install systems within a time frame appropriate for the time of year that the award was made, but not to exceed 1 year from the date of notice of provisional award.
Under the Program, contract participants will be required to install systems manufactured in Michigan or constructed by Michigan workers.
The size of the installed system is limited to at least 1 kilowatt DC but no more than: 20 kilowatts DC for residential customers; 150 kilowatts DC for non-residential customers; the capacity necessary to generate the same amount of energy that is annually consumed by the customer at that location.
The selection process for this Program will be in multiple phases (or allocation cycles). If the capacity of systems applying for contracts exceeds the capacity offered in any phase, applicants will be selected based on a random selection system (or lottery system) for each phase.
Consumers Energy expects to allocate approximately 125 kW for residential customers each quarter (beginning in the first quarter 2012) and approximately 250 kW for non-residential customers every six months (beginning in the fourth quarter 2011).
Additional phases may occur if, upon evaluation in the third year of the Program, Consumers Energy determines that capacity will be available after the close of the final phase in the third year due to lack of demand or remainders from previous phases.
Systems equipped with a battery backup system or other energy storage systems are not qualified to participate under this Program. Energy produced by the solar energy system must be metered separately from the customer's existing electric service, and the utility will own any renewable energy credits and capacity associated with the system.
Any energy consumed by the system when not operating will be billed at the customer's normal retail rate including all associated taxes and fees. Participants also are assessed a System Access Charge equivalent to the existing distribution customer account System Access Charge used to qualify for the Program to cover metering costs.
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