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FLAT Rate Structure

Solar ROI for Consumers Energy Customers

Consumers Energy charges an average of $17.8¢/kWh. A 7 kW solar system produces a $7,757 NPV over 25 years.

$14,112
Net System Cost
$7,757
25-Year NPV
10 years
Payback Period
$0.189/kWh
Solar LCOE

Consumers Energy Rate Structure

ParameterRate
Average residential rate$17.8¢/kWh
Rate structureFLAT
Export credit policyNet metering with monthly credit

Solar System Economics

A 7 kW solar system for a Consumers Energy customer costs $20,160 before incentives. The 30% federal ITC saves $6,048. The net out-of-pocket cost is $14,112.

At Consumers Energy's $17.8¢/kWh average rate, the system saves $1,371 in year one, producing 7,700 kWh. The solar LCOE of $0.189/kWh is -6% below Consumers Energy's current rate.

Battery Storage for Consumers Energy Customers

$8,400
Battery Net Cost
$0
Daily Arbitrage
$0
Annual Arbitrage
-$11,382
25-Year Battery NPV

Consumers Energy uses a flat rate structure without significant peak/off-peak spread. Battery value comes primarily from backup power and net metering optimization rather than TOU arbitrage.

FAQ: Solar for Consumers Energy Customers

How much can Consumers Energy customers save with solar?
A typical 7 kW solar system saves Consumers Energy customers approximately $1,371/year in electricity costs. Over 25 years, the NPV of savings after system costs is $7,757.
What is Consumers Energy's rate structure?
Consumers Energy uses a flat rate structure at an average of $17.8¢/kWh. Without a large peak/off-peak spread, battery storage value comes primarily from backup power and net metering optimization.
Does Consumers Energy offer net metering?
Net metering with monthly credit
Should Consumers Energy customers add battery storage?
Battery storage for Consumers Energy customers has a 25-year NPV of -$11,382. The economics are marginal based on TOU savings alone, but backup power value and future grid services programs may change the equation.

Other Utilities in Michigan

DTE Energy
$18.8¢/kWh · TOU
›

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