Installing an electric generating system and selling excess energy is not a simple matter. Some things you should consider are:

• Generator (type/size):
• Type of electric generating system (e.g. wind, solar) to install
• Size (or capacity in kW) of generator
• Estimated amount of energy (kWh) that would be available for sale and when that energy would be available

• Cost/Payments:
• Cost to purchase and install the generator
• Operating and maintenance costs of the generator
• Cost to operate and maintain a dedicated telephone line to read the meter
• Cost to connect the generator to the electric grid
• Financing cost of the generator
• Payments your business would receive under the Energy Purchase Agreement

• Tax Credits/Incentives/Grants:
• Any tax credits, incentives or grants provided by the local, state or federal government

You must first determine the type, size and electrical characteristics of your generator before Consumers Energy can provide you with an estimate of the interconnection costs.

Once you decide on a generator type and size and provide the electrical characteristics to Consumers Energy, we recommend that you request and pay for an interconnection study.

When you receive the estimated cost of the interconnection from the Consumers Energy interconnection study, you should have the bulk of the information needed to evaluate the economics of your generator.

The interconnection agreement will specify the meter(s) needed for your project. The meter(s) will measure the amount of electricity Consumers Energy received from you. Consumers Energy will read the meters on a billing month basis and submit its payment to you based on the energy supplied, up to the maximum amount specified in the executed Energy Purchase Agreement.

Any Consumers Energy customer whose electric generating resource meets the requirements for a Qualifying Facility as defined and determined under the Public Utility Regulatory Policies Act of 1978 (PURPA) is eligible to participate.

Consumers Energy does not sell generating equipment.

To find more information about how to obtain Qualifying Facility status on your facility, click on FERC Qualifying Facility.

If it is determined during the Generator Interconnection process that your current meter is not a bidirectional generation meter, a new generation meter will need to be installed in addition to, or by replacing, your current meter. In addition, a new telephone line may need to be installed to permit remote monitoring and downloading of generator output. Consumers Energy will own, install and maintain the bidirectional meter. You will be responsible for reimbursing Consumers Energy for its purchase, installation and maintenance costs associated with this bidirectional generation meter. If applicable, you will also be responsible for the ordering, installation and monthly charges associated with the new telephone line.

Meter reading for energy sales to Consumers Energy is accomplished by the installation of a dedicated phone line to a communications capable meter. Installation and monthly telephone charges will be the responsibility of the customer.

Before you can begin to sell electricity generated by your renewable energy system to Consumers Energy, you need to have prior approval. When you're ready to apply, visit the Generator Interconnection Information page to see additional information, specifications and applications.

Small generators (less than 550 kW units) that want to sell electricity to Consumers Energy may do so under Self Generation Provision, provided a signed contract with the Company is in place. Consumers Energy would pay the market price for electricity or the LMP, for any electricity delivered by the customer to the electric grid. That means an interval meter would need to be installed to measure the electricity delivered at each hourly interval. If you choose to install a renewable energy system 150 kW or smaller, you may qualify to participate in the Net Metering Program.

The rate for any electricity you purchase from Consumers Energy (not self-generated) will be the same as provided for under your normal applicable rate schedule for electric service. Under the Self Generation Provision, you will be charged for all energy you use that is supplied by Consumers Energy, usually referred to as “Inflow”. (see Consumers Energy's Net Metering program).

If you install a renewable generator but do not select to sell service to Consumers Energy under the Self Generation Provision, you may choose to stay on your existing rate and use the electricity produced by your generator at your home or business (provided that appropriate safety devices are installed). This may reduce the amount of electricity you purchase from Consumers Energy, but you will not receive any other credit or payment for the electricity you generate, even if you generate more than you can use. When customers choose to self-generate electricity on site, Consumers Energy will install the appropriate metering device based on the options for service selected by the customer at the customer’s expense.

Other than the Renewable Energy Charge which is a per meter charge, you would pay the other surcharges just on the electricity you purchase from Consumers Energy. Surcharges applicable to your consumption can be found in the Company's Electric Rate Book, on Tariff Sheets D-2.00 through D-5.00.