Energy Storage Target
This is a requirement on electric providers rather than a rebate or incentive you can apply for, so there is nothing for homeowners to sign up for directly. Michigan has set a goal of 2,500 MW of energy storage by December 31, 2029, which utilities and suppliers must work toward through their long-term plans. Contact your electric provider or the Michigan Public Service Commission for details on how storage projects may affect your service.
Michigan's Public Act 235 sets a 2,500 MW energy storage target by December 31, 2029, which creates demand for storage projects from utilities and retail suppliers. Electric providers that contract with third-party storage providers are eligible for a financial incentive tied to their contract payments, so they have a reason to buy storage capacity from outside developers. Alternative electric suppliers may also contract with electric utilities to meet their share, and providers must show compliance in their integrated resource plans.
Public Act 235 sets a statewide target of 2,500 MW of energy storage by December 31, 2029, with each electric provider assigned a share based on its proportional share of annual average in-state peak load over five years. Providers show compliance in their integrated resource plans, and alternative electric suppliers can contract with utilities to cover their share. Providers contracting with third-party storage owners earn an incentive equal to that year's contract payments multiplied by their pre-tax weighted average cost of permanent capital from their latest general rate case order, and implementation is proceeding in MPSC Docket No. U-21571.
Program details
- Program ID
- 22571
- Expires
- 12/31/2029
- Last updated
- 11/20/2025
Eligibility
- Sectors
- investor-owned utility retail supplier
- Technologies
- lithium-ion
Program summary
With the enactment of Public Act 235, Michigan adopted an energy storage target of 2,500 MW by December 31, 2029.
Electric providers are responsible for a share of this target based on their proportional share of annual average in-state peak load, calculated over five years. Electric providers are to demonstrate compliance with the target in their integrated resource plans. Alternative electric suppliers can contract with electric utilities to supply their share of the target.
Electric providers that contract with third-party providers for energy storage are eligible for a financial incentive. The incentive is the product of contract payments in that year multiplied by the electric provider’s pre-tax weighted average cost of permanent capital comprised of long-term debt obligations and equity of the electric provider’s total capital structure as determined by the Michigan Public Service Commission’s final order in the electric provider’s most recent general rate case.
A proceeding implementing the energy storage requirement is underway in Docket No. U-21571.
Contact & resources
Please verify current program details with the administering agency before making any financial decisions.
