Consumers Energy solar: net metering and export credit rules

The rules

What happens to the solar power you send to the grid

Consumers Energy says it provides electric service to 1.8 million customers in Michigan's Lower Peninsula.

Distributed Generation Program

How Consumers Energy credits exports

Consumers Energy credits home solar through its Distributed Generation Program, which took effect January 1, 2021 and replaced its former net metering program under Michigan's 2016 energy law.
Electricity the home draws from the grid, called inflow, is billed under the customer's retail rate schedule plus surcharges and the Power Supply Cost Recovery factor.
Extra solar power sent to the grid, called outflow, is credited based on the power supply rates of the customer's rate schedule, which include transmission costs, plus the Power Supply Cost Recovery factor.
Since February 27, 2024, Consumers applies the credit to all eligible electric charges on the bill, which excludes its securitization charges, and any unused credit carries forward to later bills and cannot be transferred.
Customers who joined net metering before January 1, 2021 may stay on those terms until they end under state law, which allows up to 10 years from enrollment, but adding generation moves all of the site's generation into the Distributed Generation Program.

The rule behind it

Clean and Renewable Energy and Energy Waste Reduction Act, distributed generation program, MCL 460.1173 and 460.1177

The program

Distributed Generation Program, Rule C11.3, Electric Rate Book

Recent changes

2023 PA 235, effective February 27, 2024, raised the distributed generation program cap from 1 percent to 10 percent of a utility's average in state peak load, raised the system size limit from 100 percent to 110 percent of the prior 12 months of use, and let outflow credits offset the total bill. Consumers says its credits have applied to all electric charges on the bill since February 27, 2024, where before they applied only to the power supply portion.

Before you connect

Limits, and the steps to get connected

Limits and eligibility

A system must be 550 kW or smaller and sized to no more than 110 percent of the customer's electricity use over the previous 12 months.
Program capacity is limited to 10 percent of Consumers' average peak demand for full service customers over the previous five calendar years, first come, first served, with at least half reserved for systems of 20 kW or less.
The MPSC's October 2025 report, using data through 2024, showed about 79 percent of Consumers' allocation for systems of 20 kW or less still unused.
Level 1 covers systems of 20 kW or less at a single site whose equipment is certified by a nationally recognized testing laboratory to the IEEE 1547.1 and UL 1741 editions Consumers lists.

How a home gets connected

You or your installer determine the system's level and complete the Level 1 to 3 interconnection application in Consumers' PowerClerk portal with contact details, generation type, system size, and annual energy use.
After Consumers approves the project for construction, the system must be built to the approved specifications in the application, and Michigan law requires the equipment and installation to meet current local and state electric and construction codes.
After installation, a commissioning test shows the generator can be safely connected to the grid, and the Commissioning Test Report and photos of the installed equipment go to Consumers.
The customer signs the Generator Interconnection Operating Agreement after checking that the details of the installed system are accurate, and must notify Consumers before making future changes to the system.
Michigan law requires utility testing and approval of the interconnection, including all metering, and a signed parallel operating agreement before the system runs connected to the grid.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. What that means in 2026.

Questions

Common questions about Consumers Energy and solar

Does Consumers Energy still have net metering for solar?

Consumers Energy replaced its former net metering program with the Distributed Generation Program, which took effect January 1, 2021. New customers are billed for inflow at their retail rate and credited for outflow at the power supply rate of their rate schedule, which includes transmission, plus the Power Supply Cost Recovery factor.

What charges can Consumers Energy solar credits pay?

Consumers says that since February 27, 2024 its distributed generation credits apply to all electric charges on the bill, where before they applied only to the power supply portion. Its tariff excludes its securitization charges from the offset, and any unused credit carries forward to later bills.

What if I buy a home that already has solar in Consumers Energy territory?

A new owner who acquires a system with an existing interconnection agreement can continue in the program and receive credits by submitting Consumers' New Move In Form, which starts the interconnection agreement transfer. Consumers says processing can take up to one month and credits apply starting the date the new account holder established electric service.

Is there still a federal tax credit for home solar?

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Tariffs and programs change, so confirm current terms with Consumers Energy before you decide.

Answers homeowners look for

Is the federal solar tax credit still available in 2026?No, not for a home solar system completed in 2026.Can an HOA stop you from installing solar panels?Michigan: State law limits HOA bans Do solar panels raise your property taxes?Michigan: Partial or limited exemption

How Consumers Energy credits home solar

Check your home