Consumers Energy Billing & Credits for Michigan Solar Customers

For homeowners and businesses served by Consumers Energy, understanding how solar billing works is essential before making assumptions about savings. Many people still expect solar credits to function like traditional net metering, where excess production offsets usage at the full retail rate. That is no longer how new solar systems are billed.

Consumers Energy now bills new solar customers under a Distributed Generation framework. Under this structure, electricity used from the grid and solar energy exported to the grid are tracked separately. Credits are applied differently than they were under legacy net metering programs, which explains why newer solar customers often see ongoing monthly bills even with strong solar production.

Let’s walk through how Consumers Energy applies charges and solar credits, what portions of your bill solar can and cannot offset, and why billing outcomes vary throughout the year.

How Consumers Energy Bills Solar Customers

Installing solar does not remove you from Consumers Energy’s system in most cases. Grid-tied solar customers remain connected to the utility grid, which continues to supply power when solar production is not sufficient.

Your electric meter tracks two separate values:

• Electricity drawn from the grid (inflow)
• Excess solar electricity exported back to the grid (outflow)

Electricity pulled from the grid is billed at standard retail rates. Electricity sent to the grid earns a credit based on Consumers Energy’s Distributed Generation credit rate. These values are not netted together as a single number. Instead, they appear as separate line items on your bill.

For customers on time-based rate plans, time-of-use pricing can affect the cost of electricity you consume from the grid. However, exported solar energy does not receive higher credit values during peak hours. This makes on-site solar usage more valuable than exporting energy, particularly for households with higher daytime consumption.

What Solar Credits Offset on a Consumers Energy Bill

Solar credits under Consumers Energy are applied as dollar credits rather than one-for-one energy offsets. This distinction matters because credits only reduce specific portions of your bill.

Solar credits typically apply to:

• Energy supply charges tied to exported electricity

Solar credits do not offset:

• Monthly customer charges
• Distribution and delivery charges
• Riders, surcharges, and system-related fees
• Taxes and other non-energy charges

Because these charges remain, most Consumers Energy solar customers continue to receive a monthly bill year-round. Battery storage can help reduce reliance on the grid by storing excess solar production for later use, but it does not eliminate all utility charges.

Credit rates are based on the energy supply portion of electricity, not the full retail rate you pay when purchasing power from the grid. Grid infrastructure, maintenance, and delivery costs are not included in solar credit calculations, which is why exported energy is valued lower than consumed energy.

Why Solar Credits May Appear Delayed

It is common for new Consumers Energy solar customers to see unusual billing during the first one or two billing cycles after installation. Solar credits may not appear immediately due to timing around permission to operate, partial billing periods, or meter configuration updates.

In most cases, billing and credits normalize after the system has completed the interconnection process and full billing cycles are in place.

Why Your Consumers Energy Bill Changes Throughout the Year

Solar production and electricity usage fluctuate seasonally, even for well-designed systems. Consumers Energy bills often reflect these changes clearly.

Typical seasonal patterns include:

• Higher solar production and lower grid usage in spring and summer
• Balanced usage during fall shoulder months
• Increased grid reliance and lower solar output in winter

Credits earned during high-production months are often used during colder months when grid consumption rises.

Do Consumers Energy Solar Credits Roll Over?

Yes. Solar credits may roll forward as dollar credits on your account. However, they are not paid out as cash and are not intended to accumulate indefinitely.

In most cases, credits earned during summer months are applied within the same year as energy usage increases during winter. Long-term surplus balances are uncommon under Consumers Energy’s current billing structure.

Interconnection and Permission to Operate With Consumers Energy

Before a solar system can operate and earn credits, it must complete Consumers Energy’s interconnection process. This process ensures system safety and compatibility with the electric grid.

The process generally includes:

• Submitting an interconnection application with system details
• Receiving approval to install
• Completing installation and required inspections
• Receiving final permission to operate

Solar systems must remain inactive until permission to operate is granted, even if installation is complete.

Is Solar Still Worth It for Consumers Energy Customers?

For many Michigan homeowners and businesses, solar can still deliver meaningful long-term value under Consumers Energy’s billing structure. The key is setting accurate expectations and designing systems around actual energy usage rather than outdated net metering assumptions.

Customers who understand how Consumers Energy applies charges and credits, and who work with experienced Michigan solar installers, tend to see the most consistent results over time.

For a broader explanation of the regulatory framework behind these billing rules, refer to our overview of Distributed Generation and how it differs from net metering.