Grid & off-grid

Net metering calculator, Michigan

Enter your exact usage, system size, and rate details to see how Michigan's net metering policy affects your solar bill, with precise controls for season, tiered rates, and fixed fees.

Your numbers

1 Project details Optional
Shown on your exported report. Leave blank to skip.
2 Your usage and system
Find this on a recent utility bill, usually labeled kWh used.
Use your quoted or planned system size. Panel count times panel wattage divided by 1,000 gives a rough figure.
Solar production swings seasonally; pick a specific month type to see how your bill shifts.
Most utilities charge a flat customer or connection fee regardless of usage.
3 Your location and rate
Defaulted to Michigan's average peak sun hours. Adjust if you know your local figure.
Defaulted to Michigan's current average residential rate. Your utility's actual rate may differ.
Michigan typically credits exports around 65% of retail. Distributed generation tariff credits exports at roughly two thirds of the retail rate.
Some utilities charge progressively higher per-kWh rates as monthly usage climbs into higher tiers.
Accounts for inverter loss, wiring loss, dust, and temperature derate combined.
Informational only. A monthly cycle means unused export credit does not carry to the next bill; annual and rolling cycles do.

How it works

Three steps to your Michigan solar bill estimate

Step 1

Enter your usage, system size, and season

Pull your monthly kWh from a recent bill and enter your planned or quoted system size in kW. If you only know your panel count, multiply it by each panel's wattage and divide by 1,000 to get a kW figure first. Select a season to model a specific month rather than only an annual average.

Step 2

Confirm your rate, tier, and export credit

Michigan's typical residential rate and export credit level are filled in by default. Swap in your utility's actual tariff numbers, tier bracket, and fixed monthly fee if you have a recent bill or interconnection agreement showing them.

Step 3

Compare the result to a full retail scenario

Run the net billing vs net metering comparison tool to see exactly how much Michigan's current export credit rate costs you compared to full 1:1 retail crediting.

How net metering works in Michigan

The Inflow-Outflow Mechanism replaced traditional net metering

Public Act 342 of 2016 phased out traditional net metering at Michigan's investor-owned utilities in favor of a distributed generation program built around an inflow-outflow billing structure. DTE Electric's version, Rider 18, took effect May 9, 2019 for new customers. Under this structure, a smart meter separately measures inflow, the electricity delivered to your home, billed at your full retail rate, and outflow, the excess power you send to the grid, credited at a separate, lower outflow rate.

Legacy net metering customers get a 10-year grandfather period

If you were already on the older net metering program before your utility's transition date, you keep those original terms for 10 years from your enrollment date before shifting onto the inflow-outflow structure. Over 90% of Michigan households are served by one of two utilities, Consumers Energy or DTE Energy, so confirming your provider and your original enrollment date matters for knowing where you stand; Michigan's tax credit and rebate estimator is worth checking regardless of which side of that date you fall on.

A 2023 law expanded the program's size limits

Public Act 235 of 2023, with updated utility tariffs approved by the Michigan Public Service Commission in March 2025, raised the statewide distributed generation capacity cap to 10% of each utility's average peak load, up from the earlier 1% limit, and increased the maximum individual system size to 550 kW or 110% of a customer's trailing 12-month electricity consumption.

Unused outflow credits carry forward indefinitely

If your outflow credit in a given month exceeds your inflow charges, the excess doesn't expire; it carries forward to offset power supply charges in future billing periods. That makes precise month-to-month sizing less critical in Michigan than in states where unused credits are lost at a fixed reset date. The Public Act 342 of 2016 publishes the current rules, so confirm the details there before you file anything.

Interconnection and the off-grid comparison

Connecting a system under the inflow-outflow structure still requires a standard utility interconnection review; the grid interconnection cost estimator covers what to expect there. And since inflow is still billed at full retail, self-consumption remains valuable even under this structure, meaning staying grid-tied stays far cheaper than a fully off-grid system; the grid tie vs off grid comparison tool shows how much cheaper.

Questions

Frequently asked

Michigan's Inflow-Outflow Mechanism, under Public Act 342, bills your home's usage at full retail (inflow) and credits excess exports (outflow) at a separate, lower rate. DTE's version, Rider 18, took effect May 2019. Legacy net metering customers keep their original terms for 10 years.

The average residential rate in Michigan was about 23 cents per kWh as of September 2026, per EIA data, up roughly 10% from a year earlier and among the highest in the Midwest. Michigan's Inflow-Outflow Mechanism bills usage at full retail and credits excess exports at a separate, lower outflow rate.

It's the billing structure that replaced traditional net metering under Public Act 342 of 2016. A smart meter separately measures inflow, electricity delivered to your home, billed at your full retail rate, and outflow, excess power sent to the grid, credited at a separate, lower rate. DTE's version, Rider 18, took effect May 9, 2019.

It raised the statewide distributed generation capacity cap to 10% of each utility's average peak load, up from 1%, and increased the maximum individual system size to 550 kW or 110% of a customer's trailing 12-month usage. Updated utility tariffs implementing these changes were approved by the Michigan Public Service Commission in March 2025.

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