Michigan Bill SB 271 Passes

LANSING, MICHIGAN (November 3, 2023)

The Michigan House of Representatives took steps to update the state’s energy legislation, including its renewable energy standard (SB 271). 

Senate Bill 271, sponsored by Senator Erika Geiss (D-Taylor), establishes:

• A 100% clean energy standard for Michigan.
• By 2040, Michigan will produce all its energy from clean sources.
• By 2030, Michigan will produce 50% of its energy from renewable sources and 60% from renewables by 2035.

What is SB 271 

Senate Bill 271 requires that Michigan get 100 percent of its electricity from clean sources by 2040, along with requirements for increases in energy storage and improved access to rooftop solar. The definition of “clean” includes renewables that use carbon capture.

The new targets for renewable energy will lead to an acceleration of solar and storage in Michigan. Currently, the two primary utilities in Michigan – Consumers Energy and DTE – will be just shy of 40% renewable energy by 2030, according to their own resource plans. They will now have to create new plans that increase that commitment to 50% by 2030.

In order to support the advancement of Michigan’s renewable energy portfolio, there were significant renewable energy siting improvements made within the bill package that will remove obstacles for wind, solar, and energy storage facilities with a capacity of more than 100MW.

How Will SB 271 Affect RECs

DG Solar Cap Lifted

The lifting of the restrictive and arbitrary distributed generation (DG) solar cap from 1% to 10% will help Michigan harness federal funding to unlock solar savings for low-income families and put pressure on legislators to include local solar and storage in the final package, including a commitment in the final bill to 2,500 MW of energy storage.

Sharp Increase in Demand for SRECs

The bill would order the state’s two big investor-owned utilities, Consumers Energy and DTE Energy, to undertake a course to reach 80 percent carbon-free electricity sales by 2035 and 100 percent carbon-free energy by 2040, meaning the demand for SRECs should see a sharp increase. 

Utilities can source Renewable Energy Credits (RECs) from out of state; thus, Michigan utility companies will be incentivized to find them in the marketplace. 

For more on Michigan's MIRECs, go here. 

For more about Michigan's market overview, go here.