Michigan Utility Guide | Palmetto Help Center

Michigan Utility Guide

Inflow/Outflow Export Credits

April 3, 2026

Top Takeaways

Inflow/Outflow Export Credits are provided for solar sent to the grid.
Alternate Retail Electric Suppliers are not required to provide export credits.
Michigan utilities recently adopted Time of Use (TOU) rates. Shift your usage to reduce on-peak consumption (3-7pm in DTE and 2-7pm in Consumers, weekdays).

Michigan's Distributed Generation Policy

There is no 1-to-1 net metering in most utilities in Michigan when excess solar is sent to the electric grid. Instead, export credits under an Inflow/Outflow Tariff are provided for all solar production not stored in a battery or immediately consumed in the home.

For all inflow electricity from the utility, you will be billed the retail rate per kWh. The retail rate is the same price per kilowatt-hour the utility charges you today. For all solar outflow exported to the grid, you will be credited the power supply energy rate as long as you receive supply from the utility (DTE Energy or Consumers).

Inflow - Charged the retail rate you pay the utility for consumption today
Outflow - Credited the Power Supply Energy Charge + Power Supply Cost Recovery (PSCR) rates

Alternate Electric Suppliers

Michigan customers have the ability to choose who provides the power supply portion of their electric service. Utility customers can either choose to receive supply services from their distribution utility (DTE or Consumers Energy) or choose from dozens of 'alternate electric suppliers' approved under Michigan's Electric Choice program.

Michigan utilities are not required to provide outflow credits for customers with alternate suppliers.

If you have an alternate supplier, Palmetto recommends you break your supply contract and return to the local, distribution utility for full service.

Inflow / Outflow Export Credit

How does it work?

Solar production will first power loads in the home avoiding the need to purchase electricity at the utility's retail rate (distribution, supply, and other charges).
Inflow: Electricity consumed from the grid will continue to be charged the utility's retail rate.
Outflow: Excess solar production exported to the grid is credited at the Power Supply + Power Supply Cost Recovery rates (supply only). For Time of Use (TOU) customers, the credit will be higher for outflow during on-peak hours and lower for outflow during off-peak hours.
Pairing Battery Energy Storage with your Palmetto solar system is a smart way to use more solar electricity in your home reducing the amount electricity you need to purchase from the grid at the retail rate in addition to providing backup power during an outage.

Outflow Credit in Consumers Energy

Rates change slightly over time.
As of April 2025, the following is the Energy Charge rate (and Outflow Credit) for Consumers most common Rate RSP. Each Summer On-Peak Outflow kWh is credited $0.15, and Off-Peak is credited $0.099. Outflow in Winter would be credited $0.085. The monthly PSCR is added to each time period.

Outflow Credit in DTE

In DTE, as of January 1, 2025, the following is the Energy Charge rate (and Outflow Credit) for DTE's most common rates Standard TOU and Overnight Savers. A summer outflow credit during on-peak hours would be $0.14261 per kWh on the Standard TOU rate or $0.15744 on the Overnight Savers.

Sample Utility Bills

Here are sample utility bills with solar DG credits provided by the utilities Consumers Sample Bill and a DTE Sample Bill.
Below is a sample Consumers Solar Bill with commentary from Palmetto.

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Time of Use Rates

DTE & Consumers Energy recently began transitioning residential customers to Time of Use (TOU) rates. TOU rates charge more for consumption during on-peak time periods and less during off-peak periods.

On-Peak hours are in DTE are 3-7pm and Consumers are 2-7pm, weekdays only.

To maximize electric bill savings, try shifting some usage to earlier in the day while solar is producing before on-peak hours begin or consider pairing your solar system with battery storage. Learn more about TOU rates from DTE and Consumers Energy.