When it comes to keeping lights on and water hot, the state of Michigan is looking for ways to promote the use of cleaner energy.
The state's Energy Office and Public Service Commission recently started two programs to financially compensate residents and small businesses that use renewable energy. Renewable energy can come from biomass, geothermal, hydrogen, hydropower, ocean, solar and wind sources.
The most commonly used personal energy generators are solar panels and wind turbines.
"It'd be like having your own little power plant in your backyard," said J. Peter Lark, chairman for the commission.
Michigan's Energy Office gave $415,000 to East Lansing-based Urban Options to offer residents, businesses and institutions rebates on solar water-heating systems.
"This is a rebate - a financial incentive - to encourage people to put in solar water (heaters)," Energy Office spokesman John Trieloff said. "Hopefully we'll reduce natural or electric gas consumption with conventional hot water systems."
Urban Options, 405 Grove St., is a nonprofit organization that provides information on energy and the environment.
The organization started taking applications for the rebate program on April 1. Customers can receive 50 percent off the cost of solar domestic water heating panels and installation, up to $2,000.
"We expect it to be very popular, because there's a great deal of interest in renewable energy and this is a proven technology," Urban Options Executive Director Aileen Gow said.
Places that use a lot of hot water would benefit more from a solar heating system than those that don't, she said.
The Michigan Public Service Commission and area utility companies signed an agreement March 29 to start a net metering program.
"The deal is if you have one of these generating facilities on your home or small business and if it generates an excess than what you need to run your home or business, you may put that power back on the grid and get a credit," Lark said. "I like to call it 'running the meter backwards,' which is essentially what you do."
Utility companies that signed the agreement will buy the extra energy from the residents and use it with the rest of their energy supplies.
"It's an attempt to encourage people to use renewable energy," Lark said. "That makes us less dependent on our finite traditional fossil fuels. Plus, every kilowatt produced from renewable energy is a kilowatt that doesn't produce harmful emissions."
The utilities would buy the energy at retail rates, which includes extra charges, said James Ault, president of the Michigan Electric and Gas Association.
