Consumers Energy Net Metering ELODY SAMUELSON September 20, 2016
Consumers Energy About Us Territory Overview 2 FOURTH-LARGEST COMBINATION UTILITY IN THE UNITED STATES Electric Utility 1.8 million electric customers 8,600 MW of capacity 900 MW of renewable energy Gas Utility 1.7 million gas customers 149 Bcf gas storage Serving Michigan for Nearly 130 Years.
Consumers Energy Net Metering 3 Authorized by 2008 PA 295 3 categories of systems Category 1 Less than or Equal to 20 kw Category 2 Over 20 kw to 150 kw Category 3 Methane Digester 150 kw to 550 kw Eligible resources Biomass, municipal solid waste, landfill gas Solar and solar thermal energy Wind Kinetic energy (waves or damn) Geothermal
Net Metering by System Type 4 MW 2.500 Net Metering by System Type July 2016 2.000 1.500 1.000 0.500 0.000 As of July 2016 Commercial Solar Residential Solar Residential Wind Commercial Wind Customers primarily choose solar over other options.
Consumers Energy Net Metering Participation 5 KW 7000 6000 5000 4000 3000 2000 1000 0 Net Metering Cumulative Enrollment By End of 2015: Small Installations - 6% of cap Large Installations 9% of cap Very Large Digester Installations 1% of cap Category 1 Category 2 Total Enrollment Despite program growth cap is still far from being met.
Enrollment by Category/Number of Customers 6 # Net Metering Customers per Year 160 140 120 100 80 60 40 20 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Forecast Category 1 Category 2 2016 has seen a significant increase in participation.
2016 Net Metering Installations by Customers 7 30 2016 Enrollment by Month 25 20 15 10 5 0 January February March April May June July August Category 1 Category 2 Total No seasonality to systems coming online.
AMI-Field Identified Installations 8 AMI Roll Out Schedule Counties with highest concentration of identified systems Kent 16% Muskegon 14% Genesee 14% Ottawa 10% Allegan 8% Kalamazoo 6% Net Metering Customers 40% 18% 40% 14% 14% 18% 50 non-program systems found ytd needing interconnection.
Net Metering Cycle Times 9 70 Cycle Time by Category YTD 60 50 40 30 20 10 0 Category 1 YTD Category 2 YTD Online tool allows for mapping cycle time areas to improve.
Process Improvements - Installers 10 Installer training to improve understanding of interconnection process Webinar based to allow for participation across state Quarterly to bring in new installers Will feature participating installers with map on website Online interconnection application with email and phone support Updated website will provide multiple access points to application Direct outreach at events where installer partners are involved i.e. Solarize Michigan and Great Lakes Renewable Energy Fair
Process Improvements - Customers 11 At time of application: Net metering brochure describing program and application process Welcome letter Step by step status for online application process Future opportunities: Communication for in process applications during identified stuck points commissioning test instructions and interconnection agreement signature Updated website to improve customer experience Direct communication with large installations throughout process
Community Solar Solar Gardens 12 4 MW in operation
Why Community Solar? 13 Match a portion of your energy use with Michigan solar for only as little as $10 per month An average home would subscribe to ~5-6 kw for 100% of electric load Bill credit based on 7.5 /kwh for the first 5 years for generation
Program to Date 14 62.3% Subscribed September 2016
Benchmark Capital Cost Future Impacts? 15 Solar PV benchmark capital costs (nominal) Benchmark project cost US$/Watt DC $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Utility-scale (more than 5 MW) 2013 2015 2020 2030 Commercial (100 kw 5 MW) DG solar Solar PV benchmark capital costs (nominal) Residential (less than 10 kw) 2013 2015 2020 2030 2013 2015 2020 2030 Module Inverter Balance of system Tracker Installation Development Notes: Costs are based on projects using crystalline silicon modules. Development includes customer acquisition, developer overhead, permitting, and interconnection costs. Source: IHS 2015 IHS Source: North American Gas and Power Scenarios Spring 2015 Workshop / June 2015
Michigan Compared to California Distributed Solar 16 3000 2500 2000 1500 1000 500 0 California Net Metering 3/2015 Michigan Solar 2014 Source: CPUC and MPSC