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Michigan’s New Peak and Off-Peak Energy Rates: What Solar Customers Need to Know

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Michigan’s publicly regulated utility companies, including DTE and Consumers Energy, have recently implemented peak and off-peak energy rates for their customers. This means that during peak hours (typically between 4 p.m. and 7 p.m.), customers are charged more for power supplied, and charged less during off-peak hours.

The intent behind this mandate from the Michigan Public Services Commission is to incentivize people to shift their power usage to off-peak times when possible, which will ultimately save the state from having to build more power plants to keep up with demand during peak hours. However, this change in energy rates has led to confusion, particularly for homeowners with solar arrays or those considering getting a solar array. The question is, what should they do?

Suggestions and guidance from the MSS team:

If you are a DTE customer with a solar array, it may be in your best interest to switch to the D1.12 rate. By default, DTE has placed all customers on the D1.11 rate, which lists peak times as between 4 p.m. and 7 p.m. The D1.12 rate lists peak hours as 11 a.m. and 7 p.m. It’s important to note that every situation is unique, as the direction and angle of your solar panels will impact your energy production at different times of the day. For instance, if you have panels on the west side of your home, you will produce more power late in the day. Panels facing east will produce more power earlier in the day, while southern-facing panels will produce more midday, with an even amount of power produced in the morning and evening.

For most solar customers who produce the majority or all of their power, it makes sense to switch to the D1.12 energy rate. The idea is that if you are producing power and sending it to the grid during peak times, you will receive a larger credit. This can ultimately lead to greater savings on your energy bill.

It’s worth noting that switching to the D1.12 rate is not the right choice for everyone. Always consult with your solar energy provider before making any changes to determine the best rate plan for your specific situation and ensure that you are getting the most out of your solar panels.

Tired of renting your power from the electric company? Contact us to get a custom quote and begin your journey to renewable energy today! Michigan Solar Solutions is proud to be your top destination for making the switch to solar.

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