GREEN SPACE: Consumers Energy starts solar power buyback…DTE might be next
Consumers Energy has announced the start of its Experimental Advanced Renewable Program (EARP), in which the utility company will purchase energy generated through solar photovoltaic systems for the rate of $0.45/kWh in 2009 and $0.37/kWh for 2010 and beyond, for up to ten years. Considering you are likely paying in the range of $0.11/kWh, Consumers is hoping to incentivize, in a pretty big way, some of their customers investing in renewable energy sources.The bad news for us in Southeast Michigan is that DTE Energy does not currently have a similar program in place. But one is definitely in the works: Michigan’s Renewable Portfolio Standard, which mandates that 10% of Michigan’s electricity be generated from renewable sources by 2015.Consumers is willing to put money into its, well, consumers doing some of the heavy lifting towards its compliance to the RPS. The bonus for anyone getting on board — besides making some money from clean electricity generation — is that current federal tax credits will pay for up to one third of the cost of installing a photovoltaic array.Consumers’ program is purely for an array that feeds directly into its grid, without first feeding the business or home on which it is housed. The possibility does exist for the installation of two arrays: one that feeds the grid and one feeding the host.One potential downside of buying into the program is the chance, however slight, that electricity rates go above $0.37/kWh within the next decade. Nate Koetje of Feyen Zylstra, a Grand Rapids-based renewable energy consulting company, thinks a raise of that magnitude is unlikely, but concedes that some speculators would not be comfortable being locked in at one price for such a long period of time.Feyen Zylstra is working with its customers to navigate the application and installation process; for more information, email info@fzcorp.com.Read more about solar projects in Metro Detroit in the Metromode feature: “Let The Sun Shine In.”Source: Nate Koetje, Feyen ZylstraWriter: Kelli B. Kavanaugh
Consumers Energy has announced the start of its Experimental Advanced Renewable Program (EARP), in which the utility company will purchase energy generated through solar photovoltaic systems for the rate of $0.45/kWh in 2009 and $0.37/kWh for 2010 and beyond, for up to ten years. Considering you are likely paying in the range of $0.11/kWh, Consumers is hoping to incentivize, in a pretty big way, some of their customers investing in renewable energy sources.
The bad news for us in Southeast Michigan is that DTE Energy does not currently have a similar program in place. But one is definitely in the works: Michigan’s Renewable Portfolio Standard, which mandates that 10% of Michigan’s electricity be generated from renewable sources by 2015.
Consumers is willing to put money into its, well, consumers doing some of the heavy lifting towards its compliance to the RPS. The bonus for anyone getting on board — besides making some money from clean electricity generation — is that current federal tax credits will pay for up to one third of the cost of installing a photovoltaic array.
Consumers’ program is purely for an array that feeds directly into its grid, without first feeding the business or home on which it is housed. The possibility does exist for the installation of two arrays: one that feeds the grid and one feeding the host.
One potential downside of buying into the program is the chance, however slight, that electricity rates go above $0.37/kWh within the next decade. Nate Koetje of Feyen Zylstra, a Grand Rapids-based renewable energy consulting company, thinks a raise of that magnitude is unlikely, but concedes that some speculators would not be comfortable being locked in at one price for such a long period of time.
Feyen Zylstra is working with its customers to navigate the application and installation process; for more information, email info@fzcorp.com.
Read more about solar projects in Metro Detroit in the Metromode feature: “Let The Sun Shine In.”
Source: Nate Koetje, Feyen Zylstra
Writer: Kelli B. Kavanaugh
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